Chariot Resources Ltd (ASX: CC9), a mineral exploration company focused on discovering and developing high-grade lithium opportunities, has signed a non-binding memorandum of understanding (MOU) with Shanghai GreatPower Nickel & Cobalt Materials Co., Ltd. The MOU outlines a potential collaboration focused on Chariot’s lithium projects in Nigeria. This includes potential offtake agreements, development of local lithium processing capacity, and the integration of sustainable energy solutions into Chariot’s mining operations.
The MOU contemplates the sale and delivery of direct shipping ore (DSO) from Chariot’s Nigerian projects to a collection point in Sagamu, Nigeria. Upon successful due diligence and the execution of an offtake agreement, Shanghai GreatPower could purchase up to 200,000 tonnes per annum of spodumene concentrate from one of Chariot’s four Nigerian projects. The agreement also explores the potential for Shanghai GreatPower to provide funding support to accelerate the exploration and development of Chariot’s Nigerian lithium assets through credit lines or offtake prepayment financing.
Both companies will evaluate the feasibility of constructing a lithium processing facility within Nigeria to convert ore into spodumene concentrate. Additionally, the MOU includes plans to incorporate sustainable, high-tech mining practices, such as mine electrification and renewable energy solutions. Shanghai GreatPower is a leading China-based battery materials and technology group with annual revenue exceeding CNY 4.0 billion, and supplies battery metals and cathode materials to global customers including LG Energy Solution, CATL, BMW and Samsung.
Chariot anticipates completing the acquisition of the Nigerian projects in the first quarter of this calendar year. The MOU is non-binding and subject to further negotiation and due diligence. Once Shanghai GreatPower formally selects a project for offtake, both parties intend to enter a period of exclusive negotiations, focused on that project, to finalise definitive agreements such as a binding offtake contract and any related arrangements.
