ASX-listed Chariot Corporation has rejigged its acquisition terms with Black Mountain Lithium in a strategic move to boost its near-term cash while maintaining Chariot’s grip on the promising United States-based Black Mountain lithium project in Wyoming.
The amendment, struck through Chariot’s US subsidiary Panther Lithium Corporation, gives the company more breathing room by pushing back payment milestones and swapping some cash for equity.
Under the new deal, instead of coughing up US$1.45 million (A$2.3M) in three lump sums by the end of the year, Chariot will stretch the payment window out by nine months. It will make seven smaller payments finishing in September 2026.
As an added sweetener, Black Mountain will also receive 2M Chariot shares, subject to shareholder approval.
The first sum of US$125,000 (A$198,750) will be wired on Monday with a further US$125,000 due by the end of June. Chariot will then transfer progressive payments - ratcheting up by US$50,000 each time - at the end of the next five quarters.
The two million new Chariot shares being offered will be subject to a six-month escrow and a shareholder nod by the end of May. However, if approval doesn’t come through, Black Mountain will instead get a cash payout equivalent to the 10-day volume-weighted average price of the shares.
Chariot’s US lithium portfolio has 12 projects, including the claystone-hosted Resurgent prospect straddling Nevada and Oregon. The company’s Black Mountain spodumene-rich lithium project, however, has quickly emerged as a flagship development.
Chariot aims to fast-track a small-scale mining strategy at the Wyoming-based project to feed local lithium processing plants, which are struggling to meet the soaring demand from the US electric vehicle market.
The leaner mining approach is particularly appealing given Wyoming’s favourable permitting environment. Unlike many other US states, Wyoming allows small-scale operations to disturb up to 4 hectares of land without capping the volume of material that can be extracted. This is an advantage over other jurisdictions that often restrict output to 26,760 cubic metres.
To support its strategy, Chariot recently wrapped up a reverse circulation drilling campaign targeting high-grade, near-surface lithium, which is ideal for cost-effective open pit mining.
Looking ahead, the company has mapped out a further 3300m for reverse circulation drill testing in its next exploration phase. The mix of infill and extensional drill testing is designed to build a comprehensive 3D model of the deposit, which will streamline the early development of this strategically located resource.
Adding to its prolific US lithium stable, Chariot recently swooped on seven gold and lithium tenements in Western Australia’s highly prospective Southern Cross greenstone belt.
The company says it has jumped on what it says is a countercyclical opportunity while lithium prices are low and competition for prospects is limited. The company plans to recycle the assets for a profit when the next lithium exploration cycle crops up.
Chariot’s strategy isn’t without precedence. The company’s return to WA follows a successful 2023 debut, when it sold 14 exploration licences to St George Mining, locking in royalties and milestone payments along the way. It’s now looking to repeat the winning formula with another round of low-cost, high-reward exploration in one of Australia's most promising lithium terrains.
With its revamped Black Mountain payment deal unlocking greater financial flexibility, Chariot is free to shift gears and put the pedal down on fast-tracking development at the high-potential project.
The move sets the stage for the company to build momentum and secure a steady cash flow from one of its most exciting lithium plays.
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By James Pearson
