Chariot Corporation has bolstered its exploration portfolio with seven new lithium and gold tenement applications in Western Australia’s Southern Cross Greenstone Belt, alongside securing $600,000 through a convertible note facility and extending payment terms on its flagship Black Mountain project.
- Seven exploration license applications secured in Southern Cross Greenstone Belt
- Convertible note financing facility raised initial $600,000
- Second amendment to Black Mountain Purchase Option extends payment schedule
- Zimbabwe lithium project relinquished amid market challenges
- Cash balance of A$0.40 million with no borrowings reported
Strategic Expansion in Western Australia
Chariot Corporation Limited (ASX – CC9) has taken a significant step forward in its lithium and gold exploration ambitions by securing applications for seven exploration licenses within the Southern Cross Greenstone Belt of Western Australia. This region, historically renowned for prolific gold production with over 150 mines, is increasingly recognised for its lithium potential, particularly in LCT pegmatites. Early assessments suggest these tenements hold multiple high-priority targets ready for exploration once granted, positioning Chariot to tap into a promising mineral landscape.
Financial Maneuvers to Support Growth
To underpin its exploration activities and maintain financial flexibility, Chariot entered into a convertible note financing facility, drawing down an initial $600,000 AUD. This facility allows for up to $2 million AUD in total funding over the next year, with conversion rights into shares at $0.14 each. The company also amended its Black Mountain Purchase Option agreement, extending payment terms from three installments due by December 2025 to seven installments spread through to September 2026, alongside issuing 2 million shares subject to shareholder approval. This amendment eases near-term cash flow pressures and aligns payments with project development timelines.
Portfolio Rationalisation and Project Monitoring
In a strategic pivot, Chariot is relinquishing its Zimbabwe lithium project claims, citing subdued lithium market conditions and reassessed geological potential. Meanwhile, the company continues to monitor developments at its US-based Resurgent Project in the McDermitt Caldera, keeping a close eye on neighbouring projects operated by Lithium Americas Corporation and Jindalee Lithium Ltd. This focus on core assets and market conditions reflects a disciplined approach to portfolio management.
Financial Position and Outlook
As of 31 March 2025, Chariot reported a cash balance of approximately A$0.40 million and no borrowings, with exploration expenditure of around A$0.11 million for the quarter. The company is actively managing costs and pursuing additional funding avenues, including share placements and strategic partnerships, to sustain operations and advance its exploration agenda. The extended payment terms and convertible note facility provide a buffer to navigate the current market environment while positioning for growth.
Bottom Line?
Chariot’s strategic license acquisitions and financial restructuring set the stage for a pivotal year in lithium and gold exploration, but execution and regulatory approvals remain key hurdles ahead.
Questions in the middle?
- When will the Southern Cross Greenstone Belt tenement applications be granted, and what exploration timelines are planned?
- How will shareholder approval for the Black Mountain share issuance impact Chariot’s capital structure?
- What are the company’s next steps to replace the relinquished Zimbabwe assets and strengthen its portfolio?