Chariot’s Nigerian Lithium Bet Hinges on Exploration and Regulatory Approvals

Strategic Acquisition in Nigeria’s Lithium Sector

Chariot Corporation Ltd has announced a significant expansion of its lithium exploration footprint through the acquisition of a 66.7% stake in a Nigerian hard rock lithium portfolio. This portfolio, held in joint venture with Continental Lithium Limited, covers an extensive 254 square kilometres across four project clusters, Fonlo, Gbugbu, Iganna, and Saki, located in Nigeria’s Oyo and Kwara States.

The transaction involves a US$1.5 million cash payment and the issuance of 42 million fully paid ordinary shares to Continental Lithium, alongside a firm commitment to invest at least US$10 million in exploration and development over the next five years. This positions Chariot as one of the few publicly listed lithium explorers with a significant presence in Nigeria, a region gaining attention for its lithium potential.

Geological Promise and Artisanal Mining History

The portfolio is notable for its lithium-bearing pegmatites, with reconnaissance work confirming the presence of spodumene and lithium-mica minerals across all four projects. While no drilling has yet been conducted, artisanal mining activities have historically extracted lithium mineralisation, underscoring the region’s resource potential. Rock chip samples have returned lithium oxide values up to 6.59%, although these are preliminary and require further validation through drilling and chemical analysis.

Geologically, Nigeria’s lithium deposits are part of a Late Proterozoic pegmatite system related to similar prolific lithium provinces in Brazil, suggesting a promising mineralisation environment. The portfolio’s combination of exploration licences and small-scale mining leases offers flexibility for both exploration and potential fast-tracked development.

Strategic Positioning in the Africa-China Lithium Corridor

Chariot’s entry into Nigeria aligns with the growing importance of the Africa-China lithium supply corridor. China, dominating the downstream electric vehicle battery supply chain, is actively seeking upstream lithium sources beyond traditional producers in Australia and Chile. Nigeria’s lithium sector has attracted substantial Chinese investment, including in processing facilities, and artisanal mining activity has surged despite global lithium price pressures.

The joint venture structure leverages Chariot’s capital markets and transactional expertise with Continental’s local operational knowledge and relationships, providing a strong foundation for advancing the projects. The portfolio’s proximity to infrastructure, including road access to the Port of Lagos and connections to power and gas networks, further supports development prospects.

Next Steps and Market Implications

Settlement of the acquisition is targeted for the third quarter of 2025, pending regulatory and shareholder approvals. Following settlement, the joint venture plans to commence detailed geological mapping and sampling, with initial drilling programs slated for late 2025 at the Fonlo and Gbugbu projects. The objective is to delineate priority drilling targets and progress towards maiden resource estimates in 2026.

Chariot anticipates that successful exploration and resource definition will open pathways to development, including mining studies and potential strategic partnerships or project-level financing. The company is also considering various capital raising options to fund these activities, reflecting the capital-intensive nature of lithium project advancement.

This acquisition not only diversifies Chariot’s lithium portfolio geographically but also positions it to benefit from the evolving dynamics of global lithium supply chains, particularly the increasing demand from Chinese battery manufacturers sourcing from Africa.