Overview
Chariot Company (ASX:CC9) is the most important land holder for lithium exploration within the US. It has a method to focus on each onerous rock lithium in Wyoming and claystone lithium in Nevada and Oregon. The flagship Black Mountain Mission, positioned in Wyoming, has proven vital mineralization with grades of as much as 6.68% Li2O from rock chip samples. Along with the Black Mountain Mission, Chariot holds six different onerous rock tasks in Wyoming with 443 claims masking 3,585 hectares.
Chariot’s second flagship mission, Resurgent, holds the second largest land place within the McDermitt Caldera, which hosts the 2 largest lithium assets found to this point (Thacker Go 19.1 million tons (“Mt”) lithium carbonate equal (“LCE”) and McDermitt 21.5 Mt LCE). The current $650-million funding in Thacker Go by Normal Motors signifies curiosity from automakers trying to safe a provide of battery uncooked supplies. The McDermitt Caldera’s dimension and scale potential current a possibility for Automotive OEMs, battery producers and others to acquire large-scale provide to fulfill their progress plans.
The automaker’s EV targets and authorities insurance policies banning new inner combustion engine (ICE) automotive gross sales may propel lithium demand to three.7 Mt by 2030, in accordance with projections from mining big Albemarle. This means a CAGR of greater than 20 p.c between 2022 and 2030. Because the world’s demand for lithium continues to develop, Chariot’s exploration and growth efforts within the US are well-timed and provide traders publicity to the quickly rising lithium market.
Along with exploration-led initiatives, Chariot has been actively specializing in creating worth by way of the divestment of chosen lithium property. 4 such property have been divested thus far by way of sale and/or choice agreements with publicly listed firms. These transactions, assuming the present choices are exercised, might generate as much as an estimated US$5.1 million in money and stock-based consideration, along with future royalty funds for Chariot. The corporate at present has 4 further tasks that could be potential divestment alternatives, together with Lida and Amargosa (Nevada), Mardabilla (Western Australia) and Nyamukono (Zimbabwe).
The corporate believes its two core tasks, Black Mountain and Resurgent, signify early, potential lithium alternatives in america. Chariot has acquired and accomplished the mandatory approvals and preparations for drilling and has now commenced the part 1 diamond drill program on the Black Mountain Mission. This program was developed following extremely encouraging assay outcomes from the 22 rock chip samples collected to this point at Black Mountain, which returned assay outcomes of as much as 6.68 p.c lithium oxide. Chariot expects the primary assay outcomes from the part 1 drill program in January 2024. This can be adopted by a part 2 drilling program starting in Q2 2024.
Following the A$9-million IPO, Chariot now has almost A$11.2 million out there money, which is enough to fund its exploration actions for the subsequent 24 months. Of the A$11.2 million, almost 43% or A$4.8 million can be spent on the Black Mountain Mission.
Concurrently, the corporate plans to proceed early exploration actions on the Copper Mountain Mission, South Go, Wyoming Regional and the Resurgent Mission to outline targets for future drilling.
Chariot boasts a world-class group with robust monitor data in mining, exploration and the monetary providers sectors. The administration has vital company and funding banking expertise. Non-executive chairman Murray Bleach was previously the CEO of Macquarie in North America, whereas the CEO, Shanthar Pathmanathan was an oil and has funding banker with Macquarie and Deutsche Financial institution. On the geological aspect, Neil Stuart who’s a non-executive director is a lithium trade veteran having beforehand based Orocobre Ltd (which later merged with Galaxy Assets Ltd) to kind Allkem Ltd, one of many largest lithium producers on this planet. The exploration group is led by Dr. Edward Max Baker, a geologist with over 40 years of expertise and a number of other discoveries. He was the chief geologist at Newcrest Mining, MIM Holdings, Rennison Goldfields and Mount Isa Mines. The collective expertise of the administration group, from funding banking (with fundraising and M&A expertise) to useful resource discoveries, can be helpful in advancing the corporate’s core tasks.
Firm Highlights
- Chariot Company Restricted is a mineral exploration firm targeted on discovering and creating high-grade and near-surface lithium alternatives within the U.S.
- Chariot holds the most important land place for lithium exploration within the U.S. with onerous rock lithium and claystone hosted lithium exploration property.
- The corporate commenced buying and selling on the ASX in October 2023 after closing a extremely sought-after and oversubscribed A$9 million preliminary public providing (which is along with A$14.8 million being raised privately to assemble the portfolio).
- It’s at present targeted on its two core tasks within the US: (1) the Black Mountain Mission, a tough rock lithium mission positioned in Wyoming; and (2) the Resurgent Mission, a claystone lithium mission positioned in Oregon and Nevada.
- The Black Mountain Mission has had two-rounds of rock chip sampling which resulted in 22 rock chip samples collected with 10 of those samples returning assay outcomes better than 2.00% lithium oxide (Li2O) with the best worth being 6.68% Li2O. The Resurgent Mission has had a number of rounds of rock-chip sampling with 289 samples being collected and returning values as excessive as 3,865 ppm lithium. The preliminary floor rock-chip sampling applications exhibit the presence of lithium mineralization at floor.
- Along with the core tasks, Chariot holds an exploration pipeline of six tasks in Wyoming together with Copper Mountain, South Go, Tin Cup, Barlow Hole, Pathfinder and JC tasks. These tasks are potential for onerous rock lithium.
- The corporate’s portfolio contains a number of further tasks potential for onerous rock (Western Australia and Zimbabwe) and claystone lithium (Nevada, U.S.A.).
- Chariot additionally holds pursuits in a number of tasks which were both offered or conditionally divested by way of choice agreements to publicly listed firms. These embody property reminiscent of Halo, Horizon, Lithic & Mustang, and the Western Australia Lithium portfolio. Every of the divested tasks are operated by a publicly listed counterparty and relying upon the actual transaction, the tasks generate further income for Chariot within the type of future funds and royalties.
- Chariot provides traders publicity to the nascent and quickly rising U.S. lithium market.
Key Initiatives
Black Mountain Mission, Wyoming
The Black Mountain Mission is Chariot’s flagship onerous rock lithium mission. Chariot holds a 91.9 p.c stake within the mission. Black Mountain is located in Natrona County, roughly halfway between Casper and Riverton, Wyoming. The mission is well-serviced by present roads and infrastructure and contains 134 mining claims masking 878 hectares. The declare space was acquired through declare staking of public land administered by the US Bureau of Land Administration.
The mission options giant spodumene-bearing pegmatites outcropping at floor. Outcomes from the rock chip sampling program returned a finest results of 6.68 p.c lithium oxide from a spodumene outcrop. In a current exploration program, 22 rock chip samples returned assays with a median results of 2.16 p.c lithium oxide.
The corporate is conducting a 3,000-metre part 1 drilling program at Black Mountain, which commenced in November 2023. The location preparation, needed approvals and the earthworks required to assist the drilling program have been accomplished.
The part 1 drill program is designed to check the portion of the Black Mountain pegmatite dyke swarm, a goal space that’s 1,000 metres lengthy by 100 metres extensive. Greater than 22 rock chip samples have been taken from this space and the assay outcomes have been extremely encouraging. Of the 22 rock chip samples, eight had assay outcomes better than 4 p.c lithium oxide, with the best worth being 6.68 p.c lithium oxide from a spodumene outcrop. Chariot’s administration expects the primary assay outcomes from the part 1 drill program in January 2024.
Black Mountain might signify a big onerous rock lithium alternative in a tier-1 mining jurisdiction within the US. The asset options a superb mixture of geological components, and a supportive regulatory regime and is positioned in a largely unpopulated a part of Wyoming.
Resurgent Mission, Nevada and Oregon
The Resurgent Mission is a claystone-hosted lithium mission positioned within the McDermitt Caldera in Oregon and Nevada. The corporate owns a 79.4 p.c stake on this mission. The Resurgent Mission contains 1,450 claims masking 12,128 hectares and is additional subdivided into two principal declare areas, recognized as ‘Resurgent North’ and ‘Resurgent East.’ Chariot has the second-largest land place within the McDermitt Caldera, which hosts two of the most important lithium mineral assets in North America, with a mixed mineral useful resource estimate of over 40 Mt LCE – Thacker Go at 19.1 Mt LCE and McDermitt at 21.5 Mt LCE.
The Resurgent North mission targets the identical sedimentary models that host Jindalee Assets’ (ASX:JRL) McDermitt mission with a mineral useful resource estimate of 21.5 Mt LCE. A floor sampling marketing campaign at Resurgent North performed in 2021 involving 289 samples returned values as excessive as 3,865 ppm lithium (over 3 times typical lithium claystone MRE cut-off grade). Of the 289 samples, 70 samples returned values better than 100 ppm lithium, 20 samples returned values better than 1,000 ppm lithium and 10 samples returned values better than 2,000 ppm lithium.
The Resurgent East mission targets the identical sedimentary models that host Lithium Americas’ (NYSE:LAC) Thacker Go lithium deposit (MRE at 19.1 Mt LCE). The similarity in geological traits with the 2 largest lithium deposits within the US additional validates the potential for a large-scale high-grade lithium discovery at Resurgent.
Exploration Pipeline Initiatives
In addition to the 2 core tasks, the corporate has a pipeline of six lithium exploration tasks comprising 443 claims and masking 3,585 hectares. Every of them is described beneath:
- Copper Mountain Mission: The mission is positioned ~80 kilometres northwest of Black Mountain in Fremont County, Wyoming. It contains 83 mining claims masking 648 hectares. Copper Mountain has an extended historical past of prospecting and artisanal-scale manufacturing having been traditionally mined for mica, feldspar, beryl, lepidolite and tantalite. The corporate has already recognized a number of pegmatite goal areas and has plans for a geochemical and floor magnetics survey along with geological mapping.
- South Go Mission: The mission is positioned in Fremont County, Wyoming, and contains 214 mining claims masking 1,750 hectares. It is a giant and extremely potential mission with an abundance of outcropping pegmatites that happen in swarms. The corporate notes the person pegmatites on the mission may vary as much as a number of hundred metres extensive and a number of other thousand metres lengthy. There was no prior exploration for onerous rock lithium within the South Go mission space.
- Regional Wyoming Exploration Pipeline Initiatives: It contains 4 onerous rock lithium mining tasks particularly Tin Cup, Pathfinder, Barlow Hole and JC, comprising 146 mining claims masking 1,146 hectares.
- Barlow Hole Mission: This mission is positioned in Natrona County, Wyoming, and contains 60 mining claims masking 501 hectares. That is an early-stage onerous rock lithium exploration mission with outcropping pegmatites on a northeast development.
- Tin Cup Mission: The mission is positioned in Fremont County, Wyoming, and contains 45 mining claims masking 376 hectares. There’s a lengthy historical past of exploration at The Tin Cup mining district relationship again to 1907. The area has been identified for small-scale mining for gold, copper and numerous gem stones together with purple jasper, ruby and jade. That is an early-stage onerous rock lithium exploration mission with outcropping pegmatites.
- Pathfinder Mission: That is an early-stage onerous rock lithium mission positioned in Natrona County, and contains 32 mining claims masking 234 hectares.
- JC Mission: Situated in Fremont County, Wyoming, the mission contains 9 mining declare blocks spanning 75 hectares. That is an early-stage onerous rock lithium exploration mission that options a number of small excavation pits and outcropping pegmatite dykes.
Divestment Initiatives
Along with exploration-led initiatives, Chariot has been actively targeted on creating worth through divestment of chosen lithium property in its portfolio. In whole, 4 such property – Halo (Chariot’s possession 21.4 p.c), Horizon (Chariot’s possession 21.4 p.c), Lithic & Mustang (possession 21.4 p.c) and WA Lithium portfolio (Chariot was the 100% proprietor of this property previous to the sale to St George Mining Ltd) – have been divested thus far by way of choice agreements to publicly listed firms. These transactions, if the choices are exercised, might generate as much as an estimated US$5.1 million in gross proceeds (money and stock-based consideration) for Chariot along with future royalty funds.
a) Halo asset: Bought to POWR Lithium for a complete consideration of ~US$2.5 million and 1 p.c NSR.
b) Horizon asset: Bought to Pan American Vitality for a complete consideration of US$15 million.
c) Lithic and Mustang property: Bought to Purple Mountain Mining for a complete consideration of ~US$1.7 million and a couple of p.c NSR.
d) WA Lithium portfolio: Bought to St George Mining for a complete consideration of ~US$1.1 million and a couple of p.c NSR.
Furthermore, the corporate has recognized 4 extra tasks for divestment: Lida Mission (Nevada), Amargosa Mission (Nevada), Nyamukono Mission (Zimbabwe), and Mardabilla Mission (Western Australia).
Administration Crew
Murray Bleach – Non-executive Chairman
Murray Bleach has over 40 years of expertise in funding banking, funds administration and infrastructure. He beforehand held government director and CEO roles at Macquarie Group’s North American enterprise from 1999 to 2009, and was the CEO of Intoll Group Restricted previous to its sale for AU$3.5 billion in 2010. He at present serves because the infrastructure and personal fairness skilled at AustralianSuper for its direct funding group and transaction assessment committee. He additionally holds quite a few chair and non-executive director roles at numerous funds, funding start-ups and not-for-profit ventures. Bleach holds a Bachelor of Arts (monetary research) and a grasp’s diploma in utilized finance from Macquarie College.
Shanthar Pathmanathan – Managing Director
Shanthar Pathmanathan has 14 years of funding banking expertise within the metals and mining, oil and fuel and chemical compounds sectors. Previous to Chariot, he was the CEO and managing director of Lithium Consolidated, an ASX-listed firm, which had one of many largest portfolios of onerous rock lithium exploration property, globally. Earlier than that, he held numerous funding roles with Deutsche Financial institution and Macquarie Group. He has a Bachelor of Legal guidelines from the College of Western Australia.
Frederick Forni – Government Director
Frederick Forni is a senior finance skilled with over 25 years of funding banking expertise. He was a former senior managing director of Macquarie Holdings (USA) and held non-executive director roles with quite a few Macquarie Group entities and GLI Finance Ltd. He holds a B.A. in economics from Connecticut School, a J.D., awarded cum laude, from Georgetown College Legislation Middle and an LL.M. in taxation from New York College Legislation College.
Neil Stuart – Non-executive Director
Neil Stuart is an exploration geologist with over 40 years’ of expertise and is a member of The Australian Institute of Geoscientists and a Fellow of The Australasian Institute of Mining and Metallurgy. He was a founding director of Orocobre Restricted, now Alkem (ASX: AKE). He has appreciable expertise throughout a number of commodities and was closely concerned in mission delineation and acquisition in Australia, Mexico and Argentina. Over the past 20 years, he was concerned with the exploration and industrial growth of lithium tasks. Stuart is on the board of quite a few ASX-listed firms and is a graduate of the College of Melbourne (BSc.) and James Prepare dinner College (MSc.).
Dr. Edward Max Baker – Geological Guide
Dr. Edward Max Baker is a Ph.D. geologist and a fellow of AusIMM. Baker has over 40 years of expertise and has made a number of discoveries. Baker was chief geologist for Newcrest Mining, MIM Holdings, Rennison Goldfields and Mount Isa Mines. Baker was co-founder and beforehand a vice-president of exploration at New York Inventory Trade-listed Integra Assets (NYSE:ITRG).
Ramesh Chakrapani – Chief Technique Officer
Ramesh Chakrapani has over 20 years of expertise within the funding banking and various asset investing area. Of which, over 15 years have been spent at The Blackstone Group the place he was a managing director and a member of the Hedge Fund Options Particular Conditions Investing Group. Chakrapani has invested throughout a various set of industries, asset courses, geographies and liquidity profiles, and has represented The Blackstone Group on the boards of chosen investments. He has a B.A. from Yale College.
This text was written in collaboration with Couloir Capital.