Perth-based lithium explorer Chariot Corporation has moved decisively to unlock near-term cash flows from its Nigerian lithium portfolio, signing a binding agreement to formalise small-scale mining across its four highly prospective project areas.
The deal, struck with local partner Continental Lithium Limited via JV entity C&C Minerals Limited (Chariot 66.667%, Continental 33.333%), is conditional on completion of Chariot’s acquisition of its interest in C&C Minerals and the Nigerian projects under a share sale agreement announced to ASX in mid July 2025, upon which C&C Minerals will then serve as the holding company for Chariot’s Nigerian lithium portfolio.
Once settled, Continental will manage on-ground mining and logistics, taking advantage of its in-country expertise, while Chariot will handle project financing, offtake agreements and regulatory compliance.
The transaction positions Chariot as one of the first publicly-listed lithium explorers with significant holdings in Nigeria, one of Africa’s most prospective yet underexplored areas hosting lithium mineralisation.
Continental Lithium is a Nigerian-based private mining and trading company, incorporated in 2017, which began operations in 2018.
The four Nigerian assets - eight exploration licences and two small-scale mining leases - that comprise the Fonlo, Gbugbu, Iganna and Saki target clusters span about 254 square kilometres in Nigeria’s Oyo and Kwara states, which host widespread artisanal lithium mining.
The assets provide valuable exposure to the rapidly developing Africa-China lithium supply corridor. Since 2021, local miners have been hand-picking and selling spodumene-rich lithium ore to Chinese buyers, demonstrating product quality and market demand.
Chariot is now in advanced offtake talks with several international groups. A structured three-phase plan is designed to convert the artisanal pits into industry-compliant small-scale mining operations.
The first phase will target mapping, sampling and limited drilling around active artisanal sites to define localised JORC-compliant resources that could favour early mining, particularly at Fonlo and Iganna.
The proposed second phase will embody metallurgical testwork to confirm processing routes, such as gravity or flotation and mineral recoveries and will also explore further potential by-product credits, including tantalum and tin.
The third phase will address selection of the best path towards full commercialisation, either through toll-treatment at one of Nigeria’s new third-party spodumene plants or via a modular on-site unit, in a review that will include detailed trucking logistics and cost analysis.
The small scale mining will be specifically designed to minimise initial capital expenditure and maximise revenues and will be assisted by the use of existing infrastructure where possible.
Chariot may provide up to US$500,000 in working-capital loans on commercial terms, which would be repayable from early cash flows.
Critically, the program will run parallel to an aggressive large-scale exploration campaign across the same tenure. Beyond the zones of artisanal mining, Chariot and Continental geologists will deploy modern geophysics, soil sampling and systematic drilling to chase tier-one lithium discoveries.
The company is looking to early revenues from the small scale mining to assist with funding and de-risk the broader exploration effort without diluting shareholders.
Chariot’s Nigerian push adds a high-impact emerging jurisdiction to its existing US-focused portfolio, which includes the hard-rock Black Mountain lithium project in Wyoming and its claystone-hosted Resurgent lithium project straddling the Nevada Oregon border.
With artisanal mining proving lithium and buyers are present, the small scale program agreement positions Chariot as one of the first ASX-listed players to move towards actual production in Nigeria’s rapidly evolving lithium sector.
From hand-picked ore in open pits to potential first cash flows in 2026, Chariot has drawn a clear line from today’s artisanal reality to tomorrow’s larger-scale ambition.
With rare earths suddenly experiencing a resurgence courtesy of a US President that is searching the world for sources and even tipping countries like Ukraine upside down in search of them, many believe lithium’s fortunes could be linked to those of rare earths.
While electric vehicles need rare earths to manufacture the industrial magnets that power their engines, so too is lithium needed to build the batteries – arguably the most crucial part of an electric vehicle.
Chariot’s timing to go small-scale lithium mining now, followed by a much bigger exploration play might just prove prophetic if what will be the third lithium boom arrives in time to support the renewed rare earths push.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Doug Bright
