Chariot Ltd (AIM:CHAR, OTC:OIGLF) inked an agreement to team up with a TotalEnergies business to develop renewable energy ventures at mining projects in Africa.
Chariot will partner with Total Eren and the AIM-quoted company will take between 15 and 49% stakes in co-developed projects. The deal is for an initial three-years with an option to extend for a further two years.
"I am very pleased to announce that Chariot is partnering with Total Eren, a leading and skilful player in the renewable energy industry,” said acting Chariot chief executive Adonis Pouroulis.
"This partnership is looking to provide clean, sustainable, and more competitive energy to operational mines in Africa.
“A market of significant scale, that is largely untapped, where Chariot's management has a deep understanding and high-level commercial networks and we look forward to announcing our significantly progressed projects when appropriate."
Fabienne Demol, Total Eren vice president of business development, added: “Total Eren is very pleased to implement a strategic partnership with Chariot.
“We continue to believe that our expertise as a global renewable IPP and our strategic partnership with TotalEnergies, combined with Chariot's experienced team and wide reach to the African mining industry will bring further value accretive opportunities to our collaboration.
“Together, we are determined to address the energy needs of African mining companies, and we will collaborate on other renewable energy projects in Africa."
The deal is a significant step forward for Chariot which is fast evolving its energy business, after spending several years working towards partnerships – like this one – for oil and gas exploration ventures.
Total Eren was formed in 2012 and has become established as an Independent Power Producer (IPP) which develops, finances, invests in, builds and operates renewable energy power plants spanning solar, wind and hydropower.