A$600,000 Cash and A$3.19 Million Debt Shape Chariot’s Next Phase

Nigerian Program Gains Partners, But Remains Non-Definitive

Chariot Resources Ltd (ASX:CC9) has found a potential way to advance its Nigerian lithium portfolio without funding the entire next exploration phase itself. The company entered into a term sheet with C&D (Hainan), Hong Kong ZhongNuo Energy and C&C Minerals for partner-funded diamond drilling, potential trial mining and a market price-linked direct shipping ore offtake program at one project in the portfolio.

The proposal is still several steps short of a mining operation. The parties have a 90-day exclusivity period to review sites, select one project and negotiate a definitive agreement. ZhongNuo would fund agreed minimum drilling and, if results are satisfactory and the parties agree to proceed, fund and operate trial mining up to a contractual maximum tonnage. Chariot stresses that this cap is not a production forecast, and no Mineral Resource or Ore Reserve has been estimated for the Fonlo, Iganna or Saki project areas.

C&D would act as the offtake buyer and US dollar payer for qualifying DSO, while a definitive agreement would trigger a US$500,000 interest-free prepayment against future DSO invoices. The arrangement also includes a refundable US$100,000 exclusivity fee. The proposed structure builds on the partner-funded drilling term sheet, which earlier set out a phased Nigerian drilling and trial-mining program.

Mapping Starts as Licence Approvals Accumulate

ZhongNuo began geological mapping at the Iganna project in early September, tracing surface-exposed pegmatite veins, sampling and assaying exposed veins, and investigating mineralisation anomalies alongside C&C Minerals representatives. Further mapping is planned at Fonlo. The work marks an early technical stage rather than a resource definition exercise, with project selection and any drilling still dependent on the ongoing review process.

The regulatory position has also improved, although the Nigerian acquisition is not complete. The Mining Cadastre Office approved transfers of exploration licences EL 38148, EL 67480 and EL 68365 to C&C Minerals, while granting a final two-year renewal for the Fonlo Main licence from 15 October 2026. Applications and payments to convert three small-scale mining leases into mining leases have been accepted, but those conversions and the associated transfers remain pending.

The proposed acquisition covers an 11-title portfolio across the Fonlo, Gbugbu, Iganna and Saki project clusters, spanning about 257.1 square kilometres in Kwara and Oyo states. Chariot would own 66.667% of C&C Minerals, with Continental Lithium holding the balance. A first addendum increased the convertible shareholder loan to US$879,195 to fund renewal, transfer, conversion and annual service fees. Completion remains subject to the remaining conditions under the share sale agreement.

A$1.11 Million Raise Meets an Immediate Funding Need

Chariot completed a A$1.11 million private placement during the quarter, issuing 22.2 million shares at A$0.05 each. Investors also receive one listed CC9O option for every two shares subscribed, while a further 14 million options for lead managers and consultants, including 450,000 to non-executive director Phil Nolis, require shareholder approval.

The funds are earmarked for Nigerian acquisition and licence costs, exploration outside the partner-funded program, corporate expenses and partial repayment of the secured GAM loan. Thirty per cent of net equity proceeds is allocated to that repayment. The raise therefore supplies near-term liquidity, but it also adds shares and potential future dilution through the attaching options.

Cash Runway Falls Below One Quarter

The sharper issue sits in the cash flow statement. Chariot ended September with A$600,000 in cash after using A$805,000 on operating activities and A$131,000 on tenements during the quarter. It had A$3.193 million in drawn borrowings, including a secured loan carrying 18% annual interest, after repaying approximately A$307,000 during the period.

On the company’s stated calculation, available cash represents about 0.75 quarters of funding at the current level of net operating cash use. Chariot says it is exploring further capital raising and non-dilutive funding, alongside cost controls and possible monetisation of non-core assets, and expects to continue operations on that basis. That expectation is not the same as committed funding: the company had no unused finance facilities at quarter end.

The immediate test is whether the proposed Nigerian partnership can progress from exclusivity to a definitive agreement while Chariot secures enough capital to bridge the gap. Until that happens, technical progress and regulatory approvals will continue to compete with a balance sheet that offers little room for delay.