Chariot Raises $1.618M, Launches Phase 2 Drilling for Pilot Mine

Strategic Shift to Pilot Mining

Chariot Corporation Limited (ASX: CC9) has announced a significant strategic pivot for its flagship Black Mountain lithium project in Wyoming, USA. Moving away from the pursuit of a large-scale resource, the company is now focusing on evaluating the potential for a small-scale "pilot mine" capable of producing spodumene concentrate in the near term. This approach aligns with the growing demand from lithium hydroxide refineries currently under construction in the United States, positioning Chariot to potentially supply critical raw materials in a tightening market.

The pilot mine strategy represents a pragmatic step to accelerate production timelines and reduce upfront capital intensity, while laying the groundwork for future larger-scale resource development.

Capital Raise and Drilling Program

Supporting this revised strategy, Chariot successfully completed a capital raising of A$1.618 million in October 2024. The raise involved issuing 8.09 million shares at A$0.20 each, accompanied by free attaching options, and was strongly supported by institutional and sophisticated investors, including board members who subscribed for 750,000 shares.

With funding secured, the company commenced its second phase drilling program at Black Mountain in late November 2024. This program targets spodumene-bearing LCT pegmatite dykes in two key southern locations identified through advanced geochemical sampling and K-Rb ratio analysis. The drilling is being conducted by Boart Longyear using a reverse circulation MPD 1500 rig, aiming to define a small-scale lithium resource that could underpin the pilot mine.

Financial Flexibility and Project Portfolio

In December 2024, Chariot’s U.S. subsidiary, Panther Lithium Corporation, amended its purchase option agreement with Black Mountain Lithium Corp. to enhance financial flexibility. The original USD $750,000 payment due at year-end was restructured into three installments plus the issuance of one million fully paid ordinary shares, subject to shareholder approval. The final purchase price installment of USD $1 million remains due by December 2025.

Meanwhile, Chariot is relinquishing its Zimbabwe project claims following a reassessment of the lithium market and geological potential. The company continues to monitor developments at its Resurgent Project in the McDermitt Caldera and other pipeline projects in Wyoming, maintaining a diversified portfolio focused on high-grade, near-surface lithium opportunities.

Financial Position and Outlook

As of 31 December 2024, Chariot held approximately A$0.67 million in cash, with no borrowings. Exploration expenditure for the quarter was approximately A$0.46 million. The company acknowledges that its current cash reserves cover just under one quarter of operating activities, but it is actively exploring further capital raising and non-dilutive funding options, including monetising third-party shareholdings.

Administrative and compliance costs were elevated due to increased marketing efforts, reflecting the company’s push to raise its profile and attract investment. The board remains confident in its ability to continue operations and meet business objectives through a combination of funding initiatives, cost management, and asset optimisation.