Chariot Resources (ASX:CC9) has closed its union deal with Shanghai Greatpower, with the high-tech Chinese battery materials company to now inject $1.425 million into the company’s Nigerian lithium projects.
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Greatpower is a multi-billion RMB revenue battery materials group with over 20 years working in the lithium-ion supply chain. The group is now expanding its refining capacity with the major aim of building up to a 100,000-tonne annual production capacity for battery-grade carbonate.
Under the terms of this February agreement, which The Market Link first reported on early last month, Greatpower will subscribe for 9.5 million fully paid shares at 1.5cps. The deal also carries another 19M free-attaching options, which Greatpower can now pick up for 30cps anytime in the next two years.
“We’re delighted to welcome Greatpower onto our register,” Chariot’s chairman, Shanthar Pathmanathan, said today. “And, we look forward to them increasing their stake as the relationship develops.”
The deal will be a “powerful alignment,” Mr Pathamanathan told shareholders, that will immediately give Chariot global connections. Greatpower added it was “looking forward to working closely with Chariot” into the future.
While the deal was still being closed, Greatpower chairman Aaron Cao also declared: “Under the shared vision of achieving ESG goals, Greatpower and Chariot will create long-term, mutually beneficial outcomes in areas such as green renewable energy for mining operations and electric mining trucks.”
Beyond the cash injection, Chariot and Greatpower are also talking about project-level financing and are interested in setting up offtake agreements.
The proposed framework for the latter, The Market Link understands, is that Greatpower would send over capital for Charot’s early small-scale mining. Greatpower would retain exclusive rights over early mining.
The Chinese battery producer would also hold an option to take a minority stake in Chariot’s four Nigerian projects, Fonlo, Gbugbu, Iganna, and Saki. Together, these cover some 254 square kilometres in West Africa; Chariot is expected to complete their acquisitions later on this quarter.
The whole deal has an April 15 stop date, meaning Chariot and Greatpower now have some time to sign on the dotted line. Once funds come in, Chariot will pay a 6% success fee and 5M options to Michael Langford.
CC9 shares re-entered trading at 14.5c/ea on Thursday.
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