[SMM Analysis: Chariot Moves to Formalise Small-Scale Lithium Mining Across Nigerian Portfolio]

Perth-based Chariot Corporation has taken a decisive step toward generating early cash flow from its Nigerian lithium assets by signing a binding conditional agreement with its local partner, Continental Lithium. The agreement aims to establish structured small-scale mining (SSM) operations across four project areas in Oyo and Kwara states.

The partnership will be executed through the joint-venture entity C&C Minerals, in which Chariot holds a 66.667% interest and Continental Lithium holds 33.333%. The arrangement will take effect upon completion of Chariot’s acquisition of its stake in the Nigerian portfolio, as announced to the ASX in July 2025. Once finalized, C&C Minerals will become the holding company for the relevant mining licences.

The four project areas comprise eight exploration licences and two small-scale mining leases, covering a total of 254 km² across the Fonlo, Gbugbu, Iganna, and Saki clusters. These regions are known for extensive artisanal mining activity, where local miners have been selling spodumene-rich ore to Chinese buyers since 2021—confirming both ore grade and market demand.

Under the agreed structure, Continental Lithium will manage on-the-ground mining operations and logistics, leveraging its established presence in the region since 2018. Chariot will oversee project financing, regulatory compliance, and advanced offtake negotiations with several international commodity buyers.

A three-phase development plan has been laid out to transition informal artisanal mining into formalised SSM operations. The first phase will focus on detailed mapping, sampling, and selective drilling around active mining pits, with the goal of defining JORC-compliant resources in priority areas such as Fonlo and Iganna.

The second phase will involve metallurgical test work to determine the optimal processing method—whether gravity separation, flotation, or a hybrid approach—and to assess potential by-product credits, including tantalum and tin. The results will inform a robust processing flowsheet and commercial viability assessment.

The third phase will evaluate toll-treatment options at emerging Nigerian spodumene concentrators against the use of modular on-site processing plants. This evaluation will consider haulage distances, trucking costs, and timelines to first production, with the aim of identifying the fastest and most commercially viable route to market.

Chariot’s management stated that the partnership positions the company as one of the first publicly listed explorers with significant lithium holdings in Nigeria—one of Africa’s most prospective yet underexplored regions for hard-rock lithium.