Chariot Corporation has secured a controlling stake in a major Nigerian lithium portfolio, marking a strategic entry into the Africa-China lithium corridor, supported by a A$1.6 million capital raise and enhanced working capital facility.
- Acquisition of 66.667% interest in Nigerian hard-rock lithium assets
- A$1.6 million raised via share placement to fund acquisition and exploration
- Unsecured working capital facility increased to A$1.6 million
- Exploration activities underway with drilling planned for early 2026
- Board reshuffle includes new independent director and executive chairman appointment
Strategic Acquisition in Nigeria
Chariot Corporation Limited (ASX, CC9) has taken a significant step in its lithium exploration journey by entering into an agreement to acquire a 66.667% stake in one of Nigeria’s largest hard-rock lithium portfolios. This portfolio spans approximately 254 square kilometers across four project clusters; Fonlo, Gbugbu, Iganna, and Saki; located in the Oyo and Kwara states. The acquisition, valued at US$1.5 million in cash plus 42 million ordinary shares, positions Chariot firmly within the rapidly expanding Africa-China lithium supply corridor.
The Nigerian assets include a mix of exploration licences and small-scale mining leases, offering both long-term exploration potential and near-term development opportunities. Notably, these tenements have a history of producing spodumene concentrate for export to Chinese markets, validating the quality of the mineralisation and existing demand.
Capital and Financial Maneuvers
To support this acquisition and subsequent exploration activities, Chariot successfully raised A$1.6 million through a share placement priced at A$0.05 per share. This capital injection is complemented by an unsecured working capital facility initially set at A$880,000 and subsequently increased to A$1.6 million during the quarter. The facility, provided by GAM Company Pty Ltd, carries prepaid interest and options, reflecting a strategic approach to bolstering liquidity amid ongoing exploration expenditures.
Despite these efforts, the company reported a modest cash balance of A$0.68 million at quarter-end, with exploration expenditure of approximately A$0.5 million primarily directed towards the Nigerian portfolio. The financials underscore the importance of continued capital management as Chariot advances its projects.
Exploration and Development Outlook
Chariot has commenced initial field programs in Nigeria, with systematic exploration underway and first drilling targeted for early 2026. This timeline reflects a cautious but deliberate approach to unlocking the value of these assets. The Nigerian portfolio complements Chariot’s existing lithium projects in the United States, including the Black Mountain and Resurgent projects, which continue to show promising signs of high-grade lithium mineralisation.
Geologically, Nigeria’s lithium pegmatites share characteristics with Brazil’s renowned Lithium Valley, suggesting significant upside potential. The presence of artisanal mining activity further supports the prospectivity of these deposits. Infrastructure and jurisdictional factors also favor development, with proximity to the Port of Lagos and supportive Nigerian mining regulations.
Corporate Governance and Leadership Changes
During the quarter, Chariot appointed Brendan Borg as an Independent Non-Executive Director, bringing over 25 years of mining experience and specific expertise in West Africa’s lithium sector. Additionally, Managing Director Shanthar Pathmanathan was elevated to Executive Chairman, signaling a consolidation of leadership as the company navigates this expansion phase. Meanwhile, Non-Executive Director Neil Stuart resigned, marking a notable board reshuffle.
These leadership changes align with Chariot’s strategic ambitions and may provide enhanced governance and operational oversight as the company scales its lithium portfolio across continents.
Bottom Line?
Chariot’s Nigerian acquisition and capital initiatives set the stage for a pivotal 2026, but execution risks and funding needs remain key watchpoints.
Questions in the middle?
- Will Chariot complete the Nigerian acquisition on schedule and secure shareholder approval?
- How will initial drilling results in Nigeria influence the company’s valuation and development plans?
- What are the company’s strategies to extend its cash runway beyond the current limited funding horizon?