Perth-based lithium explorer Chariot Corporation has taken a decisive step toward generating near-term cash flows from its Nigerian lithium assets, formalising small-scale mining operations across four promising project areas.
Strategic Partnership Unlocks Nigerian Potential
The binding agreement with local partner Continental Lithium Limited establishes joint venture entity C&C Minerals Limited, with Chariot holding a dominant 66.667% stake against Continental's 33.333% share. The deal remains conditional upon completion of Chariot's acquisition under a share sale agreement announced to the ASX in mid-July 2025.
Once finalised, the partnership will leverage Continental's on-ground expertise for mining and logistics operations, while Chariot manages project financing, offtake agreements and regulatory compliance. This strategic division of responsibilities positions Chariot among the first publicly-listed lithium explorers with significant holdings in Nigeria, one of Africa's most prospective yet underexplored lithium regions.
Four Key Assets Spanning 254 Square Kilometres
The Nigerian portfolio comprises eight exploration licences and two small-scale mining leases across the Fonlo, Gbugbu, Iganna and Saki target clusters. These assets cover approximately 254 square kilometres in Nigeria's Oyo and Kwara states, areas already known for widespread artisanal lithium mining activity.
Since 2021, local miners have been hand-picking and selling spodumene-rich lithium ore directly to Chinese buyers, demonstrating both product quality and established market demand. This existing activity provides Chariot with valuable exposure to the rapidly developing Africa-China lithium supply corridor.
Three-Phase Development Strategy
Chariot has developed a structured three-phase plan to transform artisanal mining pits into industry-compliant small-scale operations. The company is currently in advanced offtake discussions with several international groups to secure market outlets for future production.
Phase one will focus on mapping, sampling and limited drilling around active artisanal sites, particularly at Fonlo and Iganna, aiming to define JORC-compliant resources suitable for early mining.
Phase two involves metallurgical testwork to confirm optimal processing routes, including gravity or flotation methods, while exploring potential by-product credits from tantalum and tin.
Phase three will determine the best commercialisation path, evaluating options between toll-treatment at Nigeria's new third-party spodumene plants or deploying modular on-site processing units.
The small-scale approach is specifically designed to minimise initial capital expenditure while maximising early revenues, utilising existing infrastructure where possible. Chariot may provide up to US$500,000 in working-capital loans on commercial terms, repayable from early cash flows.
Dual Strategy: Near-Term Revenue and Major Exploration
Critically, the small-scale mining program will run parallel to an aggressive large-scale exploration campaign across the same tenure. Beyond the artisanal mining zones, Chariot and Continental geologists will deploy modern geophysics, soil sampling and systematic drilling to pursue tier-one lithium discoveries.
This dual strategy allows early revenues from small-scale operations to help fund and de-risk the broader exploration effort without diluting shareholder value. The approach represents a pragmatic path from today's artisanal reality to tomorrow's larger-scale mining ambitions.
Chariot's Nigerian initiative adds a high-impact emerging jurisdiction to its US-focused portfolio, which includes the hard-rock Black Mountain lithium project in Wyoming and the claystone-hosted Resurgent lithium project straddling the Nevada-Oregon border.
With artisanal mining already proving both lithium presence and buyer interest, Chariot's small-scale program positions the company as one of the first ASX-listed players moving toward actual production in Nigeria's rapidly evolving lithium sector.
The timing appears strategic, with lithium demand increasingly linked to the fortunes of rare earths in electric vehicle manufacturing. While rare earths power EV engines through industrial magnets, lithium remains crucial for battery production – arguably the most critical component of electric vehicles.
Chariot's move to establish small-scale lithium mining now, followed by larger exploration efforts, could prove prophetic if an anticipated third lithium boom aligns with renewed global focus on rare earths sourcing.
