Milestone deal plunges Chariot into West African lithium market

It’s no secret that lithium has become the new oil in the global race to power the clean energy revolution. And now, Chariot Corporation has taken what could well prove to be its boldest swing yet - striking a landmark deal that positions it as a dominant force in Nigeria. The West African nation is one of the world’s most tantalising but overlooked lithium frontiers, which is quickly becoming the new frontline in the global lithium race thanks to the world’s largest electric vehicle market, China.

Chariot’s latest move, unveiled today, involves acquiring a little more than 66 per cent of a suite of five lithium-rich tenements. Importantly, four of those projects already have mapped pegmatites containing visible spodumene – the lithium-bearing mineral that turns heads in this game. One shows lithium grades of up to 6.59 per cent lithium oxide in rock chips. That’s the kind of figure that grabs attention anywhere on the global lithium map.

The company will acquire its 66.7 per cent interest in Nigerian holding company C&C Minerals, which will hold the eight exploration licences and two small-scale mining licences. Licence vendor Continental will retain a one-third interest in C&C Minerals. 

Continental appears to have a strong track record of operating artisanal mining and mineral processing operations in Nigeria for lithium, as well as other minerals including tin and zircon. As part of the deal, Continental will be issued a total of 42 million shares in Chariot, including 24 million shares issued upon Chariot shareholder approval.

The move fits squarely into Chariot’s long game – to amass a global portfolio of high-grade, hard rock lithium assets that can be advanced quickly and monetised smartly. Nigeria’s broader lithium exploration narrative is currently being led by major players, including Gangfeng, and if it’s anything to go by this could be a canny move indeed.

Africa is quickly becoming the new frontier in the global lithium race. With the world’s shift to electric vehicles accelerating, China is pouring investment into African lithium mines in a strategic bid to secure low-cost, high-volume feedstock. Consensus forecasts hold that China’s hard-rock lithium supply deficit will increase up to five-fold by 2035. Beijing is turning to Africa to fill the gaping hole, which is why Chariot Corporation’s latest move could be transformative. 

In Zimbabwe alone, Chinese investors already control nearly 90 per cent of lithium production, and the government’s ban on raw ore exports is only accelerating investment in downstream refining facilities. The Chinese play is clear: secure the resource, control the processing and lock up supply chains at the lowest cost. Against that backdrop, Chariot’s Nigerian move puts it squarely in the path of the next wave of lithium capital flows.

Chariot’s newly acquired four Nigerian projects all sit within a 400-kilometre radius of the Port of Lagos and include confirmed spodumene-bearing pegmatites at the Fonlo, Gbugbu, Iganna and Saki projects. At Fonlo, lithium mineralisation is visible along a strike of more than 200 metres, while surface chip samples at Gbugbu have returned assays up to 6.59 per cent lithium oxide – a result that would make any geologist crack a gold-toothed smile. 

Chariot has seemingly put a shrewd deal structure in place. The low upfront cost and staged payments minimise risk while preserving upside. It’s the sort of strategy that reflects a management team with commercial instincts and a sharp read on a lithium market misread by so many.

And this is not a one-off play.

In the United States, Chariot continues to advance its flagship Black Mountain lithium project in Wyoming, where it recently renegotiated acquisition terms to preserve cash. The new structure spreads US$1.45 million (A$2.22 million) in payments over seven instalments to September next year, avoiding large near-term capital outlays and retaining project optionality. In parallel, the company has been building its portfolio in Western Australia, where it holds ground in the Southern Cross Greenstone Belt – a tier-one jurisdiction for both lithium and gold.

It’s all part of a broader strategy that’s as opportunistic as it is global. In 2023, Chariot flipped 14 WA lithium licences to St George Mining in a deal that still delivers exposure through royalties and milestone payments. It’s a company that drills, deals and doubles down when the market gives it a reason.

Managing director Shanthar Pathmanathan said the company was excited by the early results in Nigeria and sees the new acquisitions as a natural fit within Chariot’s broader international lithium playbook:

“The exploration results across these Nigerian projects are already very encouraging, with several projects having confirmed spodumene-bearing pegmatites,” Pathmanathan said. 

“We’re looking forward to getting on the ground and advancing these high-grade lithium prospects, which complement our development work in the United States.”

In the lithium game, it’s no longer just about how big your rock pile is – it’s about optionality, speed, geography and geopolitical leverage, with Nigeria appearing to be on the cusp of something big in the lithium space. If China’s recent moves into Africa continue, the next big lithium boom may not be coming out of the Pilbara or the Andes - it might just come from West Africa. Chariot’s early-mover advantage could be the smartest thing it’s ever done.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au