Risks and Rewards: Chariot’s Small-Scale Mining Bet in Nigeria’s Emerging Lithium Sector

A New Chapter for Nigerian Lithium

Chariot Corporation Limited, holding a majority stake in a joint venture with Continental Lithium and C&C Minerals, has taken a decisive step toward commercialising lithium resources in Nigeria. The parties have signed a binding, conditional agreement to pursue small-scale mining (SSM) operations across four Nigerian project clusters, Fonlo, Gbugbu, Iganna, and Saki, pending completion of Chariot’s acquisition under a previously announced share sale agreement.

This move formalises a strategy to transition artisanal lithium mining activities, which have been ongoing since 2021, into more structured and scalable operations. The agreement leverages Continental’s local expertise to manage mining and logistics, while Chariot focuses on securing project financing and negotiating offtake agreements with international buyers.

Phased Approach to Scaling Up

The SSM initiative is structured around a three-phase plan designed to progressively de-risk and expand operations. Phase 1 involves targeted exploration and resource definition, including detailed mapping and drilling to delineate lithium-bearing zones in areas of active artisanal mining. Phase 2 will focus on metallurgical testing to identify optimal processing methods and assess potential by-products such as tantalum or tin. Phase 3 will evaluate toll processing options and logistics, aiming to utilise existing processing plants in Nigeria to avoid heavy capital expenditure and accelerate time to market.

Balancing Near-Term Revenue with Long-Term Growth

Importantly, the small-scale mining operations are designed to run in parallel with Chariot’s broader exploration programs, which employ modern techniques like high-resolution geophysics and geochemical sampling to identify larger lithium deposits. This dual approach aims to generate early cash flow and operational experience without compromising the pursuit of a major lithium resource discovery.

Chariot has already entered advanced discussions with several reputable international commodity buyers, signalling strong market interest in the Nigerian lithium assets. These potential offtake agreements are expected to underpin financing arrangements for the SSM project, potentially including prepayment or financing components that minimise shareholder dilution.

Strategic Implications and Next Steps

The formalisation of the SSM agreement positions Chariot and its partners as early movers in Nigeria’s emerging lithium sector, a market gaining global attention amid rising demand for battery metals. The project’s success will hinge on the outcomes of metallurgical testing and the economics of processing and logistics, which are currently under evaluation. Meanwhile, the joint venture’s operational and financial arrangements provide a clear framework for profit sharing and risk management.

As the SSM phases progress, investors will be watching closely for updates on resource definition, processing test results, and the finalisation of offtake contracts. These developments will be critical in validating the commercial potential of the Nigerian lithium portfolio and shaping Chariot’s growth trajectory in this strategically important region.