With great power comes great responsibility. For Chariot Resources Ltd (ASX:CC9, OTCQB:CHRTF, FRA:ZJ5), it comes with a binding deal for a $1.425 million, following a strategic investment from Jiangsu Greatpower NexEnergy Technology, an affiliate of Shanghai Greatpower Nickel & Cobalt Materials.
Greatpower will subscribe for 9.5 million fully paid ordinary shares at $0.15 per share and receive 19 million free-attaching unlisted options (2-for-1) exercisable at $0.30 and expiring two years from issue.
The funding is aimed at accelerating exploration and development across its Nigerian lithium project portfolio and strengthening the balance sheet.
Just as important, the company says the investment is tied to advanced talks with Greatpower about a broader partnership that could include project-level funding and product offtake.
“We are delighted to welcome Greatpower onto our register and look forward to them increasing their stake as the relationship develops. We see this as a powerful alignment with a globally connected battery materials group,” said Shanthar Pathmanathan, executive chairman and managing director of Chariot.
Funding and offtake talks: What’s on the table
Chariot's discussions with Greatpower have moved toward a proposed financing and offtake “framework” for its Nigerian lithium portfolio, although nothing has been finalised.
Possible elements Chariot has flagged include:
- Prepayment funding to help kick-start early small-scale mining, to be repaid through product deliveries under an offtake agreement
- Exclusive offtake rights over early-stage production
- Wider funding support for exploration and development across the portfolio, potentially alongside minority equity positions in selected assets
- Potential life-of-mine offtake rights, on terms to be agreed
Chariot stressed there is no certainty a definitive agreement will be signed or that any project-level arrangement will proceed.
Completion depends on approvals in China
The subscription is conditional on Greatpower securing the relevant outbound investment and foreign exchange approvals required to send funds offshore.
Once Chariot receives written confirmation that the conditions have been met, the subscription is due to complete five business days later.
A long stop date of April 15, 2026, applies. If the approvals are not obtained by then, the subscription will lapse without liability to either party.
Why Greatpower is a notable partner
Greatpower is a strategic participant in the battery materials supply chain, citing its long operating history and vertically integrated exposure across nickel, cobalt, lithium and other critical minerals.
Chariot also notes Greatpower’s customer relationships include LG Energy Solution, which it says holds a 4.02% equity interest in Greatpower.
“Greatpower is pleased to support Chariot through this strategic investment. We look forward to working closely with Chariot to advance negotiations on a project-level funding and offtake framework that can connect high-quality upstream supply with downstream demand, on terms and objectives which are aligned,” Cao Dongqiang, chairman of Shanghai Greatpower Nickel & Cobalt Materials Co. Ltd., said.
Greatpower is expanding its work in next-generation cathode materials and lithium carbonate refining capacity — factors it says support its interest in securing lithium supply.