Chariot Resources has secured A$1.1 million from institutional and sophisticated investors to advance its proposed Nigerian lithium acquisition, exploration and partner-funded development program. The raising also brings potential option dilution and only partially addresses the company’s secured debt.
- A$1.1 million placement at A$0.05 a share
- 22 million new shares to be issued
- One listed CC9O option for every two shares, subject to approval
- 30% of net proceeds earmarked for partial GAM loan repayment
- Nigerian acquisition remains incomplete
A$1.1 Million Placement Targets Nigerian Lithium
Chariot Resources Limited (ASX:CC9) has raised A$1.1 million before costs in a placement that gives its Nigerian lithium strategy fresh funding, while leaving investors to weigh the accompanying dilution and debt obligations. The company will issue 22 million shares at A$0.05 each to existing and new institutional, sophisticated and professional investors.
The money is intended to fund completion of the proposed Nigerian acquisition and related licence costs, exploration outside the partner-funded program, corporate expenses and a partial repayment of the GAM secured loan. Chariot says 30% of the net equity proceeds will go towards that loan, making the raise partly a project-development funding exercise and partly a balance-sheet measure.
Option Incentives Add to Potential Dilution
Participants are set to receive one listed CC9O option for every two shares subscribed, meaning the placement carries 11 million attaching options if approved by shareholders. Each option has a A$0.10 exercise price and expires on 19 December 2028. The new placement shares will rank equally with existing shares and are expected to be quoted on the ASX on 23 September 2026.
That is not the full potential option burden. The joint lead managers, PAC Partners Securities and Xcel Capital, are due 10 million CC9O options, while consultants will receive a further 3.55 million options for services, including 450,000 earmarked for non-executive director Phil Nolis. Those options, along with the attaching investor options, require shareholder approval.
Partner-Funded Program Still Depends on Execution
Chariot is positioning the capital against a proposed program with C&D (Hainan), Hong Kong ZhongNuo Energy and C&C Minerals involving partner-funded diamond drilling, potential trial mining and an offtake program. The announcement flags up to 240,000 tonnes of direct shipping ore, but explicitly describes that figure as a contractual maximum rather than a production target or forecast.
The proposed Nigerian portfolio spans the Fonlo, Gbugbu, Iganna and Saki project clusters across Oyo and Kwara states, covering about 257.1 square kilometres. It comprises eight exploration licences and three small-scale mining leases, but the acquisition itself has not yet been completed. That leaves licence processes, acquisition completion and shareholder approval for the options as the immediate conditions around the funding story.
Bottom Line?
The placement provides near-term funding for Chariot’s Nigerian push, but the investment case still turns on acquisition completion, partner-funded work and how much dilution the option package ultimately creates.
Questions in the middle?
- When will Chariot complete the proposed Nigerian acquisition and associated licence processes?
- Will shareholders approve the 24.55 million options proposed for investors, lead managers and consultants?
- How much of the Nigerian development program can be delivered after debt repayment and transaction costs?