Chariot Resources (ASX:CC9) has signed a non-binding memorandum of understanding (MoU) with Shanghai GreatPower to develop collaboration opportunities to advance the lithium supply chain.
GreatPower will be able to purchase up to 200,000 tonnes of spodumene concentrate for one of Chariot’s four Nigerian-based projects each year. The agreement contemplates the potential sale and delivery of direct shipping ore to a collection point in Sagamu, Nigeria.
Pricing for any eventual offtake is linked to an international benchmark of between 5.5% to 6% lithium oxide concentrate under this agreement.
Chariot says in order to produce meaningful levels of spodumene concentrate for the MoU, the selected project will require the completion of an appropriate level of exploration, defining a JORC-compliant resource estimate, metallurgical studies, evaluation of toll processing options and ore transportation logistics, technical studies, and securing necessary permits.
Both parties will evaluate the design, construction, and operation of a potential lithium processing plant in Nigeria. The facility intends to allow run-of-mine ore to be upgraded onsite into spodumene concentrate.
The agreement also looks into the viability of deploying GreatPower’s electric mine trucks and renewable energy solutions to Chariot’s assets. This will also include potential installation of photovoltaic solar microgrid energy systems with battery storage.
GreatPower will conduct due diligence of Chariot’s Nigerian assets, acting as a precondition to a binding offtake or financing agreement upon GreatPower’s satisfaction.
GreatPower Chairman Aaron Cao says the company recognises Chariot’s project to become a “world-class hard-rock lithium resource”.
“The signing of this agreement with Chariot marks another milestone for GreatPower in its collaboration with high-quality upstream critical metal mines worldwide,” Cao says.
“Chariot’s project is expected to provide GreatPower with up to 200,000 tonnes per year of high-grade lithium concentrate, further strengthening GreatPower’s extensive layout in the production of battery raw materials in the downstream new energy industry chain.
“Moreover, the close cooperation between both parties will not be limited to the supply of raw materials, but will extend to comprehensive, all-round collaboration.
“Under the shared vision of achieving ESG goals, GreatPower and Chariot will create long-term, mutually beneficial outcomes in areas such as green renewable energy for mining operations and electric mining trucks.”
Chariot Managing Director Shanthar Pathmanathan says alongside its Nigerian partner Continental Lithium, the company is pleased to be in discussions with GreatPower due to its position as a “world-class battery minerals company”.
“As the first publicly listed lithium company operating in Nigeria, Chariot holds a significant early-mover advantage in this emerging region,” Pathmanathan says.
“We are particularly well-positioned through our partnership with Continental Lithium.
“The involvement of Shanghai GreatPower provides a strong endorsement of our strategy, bringing the technical expertise and potential funding necessary to unlock the full value of our Nigerian assets.”
Chariot Resources is a mineral explorer focused on discovering and developing lithium opportunities in Nigeria and the US.
Write to Maddison Elliott at Mining.com.au
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