Chariot Corporation, which holds interests in a diversified portfolio of lithium projects primarily located in the United States, is undertaking an initial public offering to raise $15.5m to carry out a phase 1 and 2 diamond drill program at its flagship projects.
The company’s principal projects exhibit lithium mineralisation at surface with large-scale potential based on the surface area of the mineral claims comprising the projects.
The Perth-based company is looking to raise funds through the issue of 34.5 million shares priced at $0.45 each for an indicative market capitalisation of $74 million and enterprise value of $56 million.
Non-executive chairman Murray Bleach said the company would focus on the search for lithium resources at levels large enough to be potentially scaled into globally-significant projects.
“The proceeds from this offer will enable Chariot to accelerate exploration activities at its flagship projects and demonstrate the value of its portfolio in the near-term,” he said.
“We believe the leadership team is well-qualified with a substantial track record to effectively deploy capital and extract maximum value from these US lithium assets.”
Wilsons Corporate Finance and Jett Capital Advisors LLC have been appointed as joint lead managers to the offer.
The offer has not been underwritten.
Chariot holds one of the largest known lithium exploration land holdings in the US.
It has a dual funded strategy targeting Hardrock lithium in Wyoming and Claystone lithium in Nevada and Oregon.
The key project target, Black Mountain located in Wyoming, contains outcropping pegmatites with grades of up to 6.68% Li2O from rock chip samples.
In addition to the Hardrock Black Mountain project, Chariot holds 6 pegmatite projects with 443 claims covering 3,585 ha.
Chariots second flagship project, Resurgent, holds the second largest land position in the McDermitt Caldera, which hosts the largest lithium resource in the US at >40Mt of lithium carbonate equivalent (LCE).
Chariot holds 1,450 claims covering 11,525 ha, ahead of bordering Jindalee, which only holds 671 claims covering 5,460ha and hosts a 21.5Mt LCE.
Neighbouring Thacker Pass (19.1Mt LCE), owned by Lithium Americas, recently received a US$650m equity investment from GM to develop their project.
In 2021, 289 surface samples were tested, with 71 samples returning values of greater than 100 ppm lithium and 10 samples greater than 2,000 ppm lithium with a top grade of 3,865 ppm lithium.
Chariot also has an interest in the Lida and Amargosa lithium projects in Nevada; the Mardabilla lithium project in Western Australia; and the Nyamukono project in northeast Zimbabwe.
The company is currently exploring options to divest its interests to various lithium operators.
Upon hitting the ASX boards, Chariot will commence the phase 1 diamond drill program across Black Mountain and Resurgent to test the size and grade potential of its core projects, with the goal of being among the first group of contributors to lithium production in the US.
The company plans to trade under the ASX ticker code ‘CC9’.
More information about Chariot Corporation’s IPO can be found on the Small Caps deals page.