Chariot Corporation (ASX:CC9) has picked up a 66.7% interest in a “highly prospective” hard rock lithium project in Nigeria, signing a two-to-one split joint venture deal with a mining company already working in the region.
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Continental Lithium, the 33.3% side of the JV, has already identified drill-ready lithium-bearing pegmatites across all four projects in the portfolio.
Chariot will pay Continental as much as US$1.5 million for the deal. The Nigerian mining company will also be handed 42 million CC9 shares to form the JV entity.
The portfolio is made up of four key clusters, Fonlo, Gbugbu, Iganna, and Saki, which together stretch across Nigeria’s Oyo and Kwara. The project already has eight exploration licences and two small-scale mining leases.
The reason: “Chariot’s entry into Nigeria is a strategic move that gives [us] exposure to the rapidly expanding Africa-China lithium supply corridor,” the company wrote.
“China dominates the downstream EV battery supply chain, [but] it remains heavily reliant on a limited number of upstream producers – namely, in Australia and Chile.
“Recognising this, Chinese lithium buyers are actively seeking out supply in Africa, where Nigeria has emerged as one of the fastest-growing regions.”
While Chariot acknowledged lithium prices aren’t so hot right now (and actually just got overtaken by nickel in white-metal action), the company says it’s confident this artisanal, small-scale mining will bring in cash.
HotCopper understands the miner plans to engage offtake partners by mid-next year.
In regard to how valuable the lithium dug up in Nigeria is, the pegmatites spotted at Chariot’s new project rank alongside Northeast Brazil’s finds.
CC9 headed into Thursday selling at 64cps before quickly popping +18%.
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