ABUJA, Nigeria – Chariot Corporation (ASX: CC9), in partnership with Continental Lithium and C&C Minerals, has announced a strategic three-phase plan to systematically develop its Nigerian lithium portfolio, transitioning from existing artisanal mining operations to a structured, revenue-generating enterprise.
The plan is designed to leverage the confirmed potential of the Fonlo, Gbugbu, Iganna, and Saki project clusters, where artisanal miners have been successfully extracting and selling high-quality, spodumene-rich ore since 2021, thereby validating both product quality and market demand.
The structured partnership will see Continental Lithium, with its established local presence, manage on-ground mining and logistics. Chariot Corporation will spearhead project financing, offtake arrangements, and regulatory compliance.
A Detailed Roadmap to Production
The company’s methodical approach is outlined in three key phases:
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Targeted Exploration and Resource Definition: The initial phase involves boots-on-the-ground activities, including detailed mapping, sampling, and selective drilling around the high-grade artisanal workings to formally define the resource.
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Metallurgical Testing and Flowsheet Development: Collected material will undergo rigorous metallurgical testing to determine the optimal recovery process—whether gravity separation, flotation, or a combination. The results will form the basis for a commercial processing flowsheet.
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Toll-Processing and Logistics Evaluation: The joint venture will evaluate the most efficient path to market, comparing the costs and timelines of toll-processing options against the establishment of a modular on-site plant.
Financing and Profit-Sharing Structure
To initiate small-scale mining (SSM), Chariot has the option to provide a working capital facility of up to US$500,000. Continental Lithium will earn a 10% fee on half-yearly net profits once the SSM initiative becomes profitable.
After accounting for this operator fee and setting aside an agreed reserve, remaining profits will first repay any drawn working capital. Subsequent surplus profits will be distributed according to ownership interests—66.7% to Chariot and 33.3% to Continental.
Advanced Offtake Paving the Way
Chariot reports that it is in advanced offtake discussions with several international commodity buyers for the future supply of lithium ore and concentrate. Securing a binding agreement is expected to provide a foundation for project financing and accelerate the development timeline, potentially utilizing prepayment components to fund the SSM strategy with minimal shareholder dilution.
The small-scale mining initiative is viewed as a pathway to near-term revenue while being secondary to the long-term goal of developing larger-scale commercial operations. The arrangement can be adjusted or terminated if it conflicts with broader development objectives.
Chariot acquired its 66.7% interest in the 254km² Nigerian portfolio earlier this year through a joint venture with Central Lithium.
