Chariot Advances Nigerian Lithium Acquisition with US$379K Loan and May 2026 Close
Chariot Resources has amended its acquisition agreement for a Nigerian lithium portfolio, securing financing and extending the closing deadline to May 2026. The move reinforces exclusivity protections and paves the way for a smoother transaction completion.
- Variation deed modifies original Share Sale Agreement
- Exclusivity and non-circumvention clauses strengthened
- Conditions precedent updated to require valid license transfers
- Closing deadline extended to 5 May 2026
- US$379,195 convertible loan provided with corporate guarantee
Context of the Acquisition
Chariot Resources Ltd has taken a significant step forward in its strategic expansion by revising the terms of its acquisition of a Nigerian lithium portfolio. The company executed a variation deed with Continental Lithium Limited in late November 2025, amending the original Share Sale Agreement announced in July 2025. This adjustment aims to facilitate the completion of the transaction, which remains a cornerstone of Chariot's growth ambitions in the lithium sector.
Key Amendments and Their Implications
The variation deed introduces several critical changes. Most notably, it strengthens exclusivity and non-circumvention protections, ensuring that neither party can entertain alternative proposals or bypass the other regarding the licenses until the deal closes or is terminated. This move underscores both companies' commitment to seeing the acquisition through without external interference.
Additionally, the conditions precedent have been updated to require that all Nigerian lithium licenses be validly issued and transferred to the joint venture entity, C&C Minerals, free of encumbrances before closing. This condition is vital to secure clear ownership and operational control of the assets.
Financial Arrangements and Guarantees
To support the transfer of ten Nigerian licenses and cover closing costs, Chariot will advance a US$379,195 convertible shareholder loan to C&C Minerals. This loan is backed by a corporate guarantee from Continental, which assures that all licenses will be transferred successfully before the extended deadline of 5 May 2026. Should any license fail to transfer on time, Continental commits to reimbursing Chariot for the associated costs. Upon successful transfer, the loan will convert into shares in C&C Minerals, with provisions in place to maintain Continental's 33.333% ownership stake, preventing dilution.
Broader Portfolio and Strategic Outlook
Beyond Nigeria, Chariot maintains a diverse portfolio of lithium projects across the United States, Western Australia, and Zimbabwe. Its core US projects, including the Black Mountain and Resurgent projects, have shown promising high-grade lithium mineralisation. The Nigerian portfolio itself is substantial, covering approximately 254 square kilometers across four project clusters with a history of artisanal lithium mining, positioning Chariot as a significant player in one of Africa's emerging lithium regions.
The extension of the closing date to early May 2026 reflects the complexities of regulatory approvals and license transfers in Nigeria but also provides a clear timeline for investors and stakeholders. Both Chariot and Continental appear aligned and motivated to complete the acquisition, which could materially enhance Chariot's lithium resource base and growth trajectory.
Bottom Line?
With strengthened protections and secured financing, Chariot is poised to close its Nigerian lithium acquisition, setting the stage for expanded growth in 2026.
Questions in the middle?
- Will all Nigerian lithium licenses be transferred without delay before the May 2026 deadline?
- How will the convertible loan impact Chariot’s future ownership and financial position?
- What regulatory hurdles remain that could affect the transaction’s completion?