$2m funding will keep Chariot US domestic lithium | Australian Markets

Chariot Corporation has saddled up with a convertible word deal, roping in up to $2 million to fuel its lithium hunt throughout the United States and Australia.

The company has locked in an initial $600,000 drawdown from New York-based investor Obsidian Global and will faucet an extra $1.4m over the subsequent 12 months. The deal offers Chariot the financial horsepower to charge forward at its flagship Black Mountain project in Wyoming, whereas conserving shareholder dilution in verify.

Chariot’s latest capital manoeuvre comes scorching on the heels of its nimble pivot to fast-track a small-scale lithium mining operation at Black Mountain alongside its latest lithium-gold play in Western Australia.

The company intends to service the surging US electric vehicle market, which lacks a domestic lithium provide at a time when Trump’s tariffs are unrelenting.

The convertible notes carry a conversion price of 14 cents, effectively above the present share price of 9.3c, offering a 12-month runway with no curiosity ticking – until issues go awry. After one yr, the word will mature with a tidy 110 per cent redemption premium.

Chariot says it will retain the pliability to redeem early at a 107.5 per cent premium earlier than June 1, or 110 per cent after, to keep its choices open.

Obsidian’s convertible word facility gives us with capital flexibility that will help us in advancing our exploration tasks whereas limiting the dilution that might happen from a normal equity capital raising on this extraordinarily difficult lithium market. We sit up for utilising this funding to create extra worth for shareholders.

The money injection is set to keep the drills buzzing at Black Mountain, the place near-surface spodumene-rich lithium is primed for a low-capex pilot mine to feed the US refineries which are simply a stone’s throw away. Wyoming’s beneficiant small-mine allowing system, which caps floor disturbance at 10 acres with no restrict on extraction quantity, stays on the core for Chariot’s swift-to-market strategy.

The company will additionally direct a small quantity of the funds in the direction of its lately acquired Southern Cross greenstone belt tenements in WA, the place it has peppered the ground with early-stage exploration to catch the subsequent lithium wave.

Chariot has 12 lithium tasks in its secure, together with the claystone-hosted Resurgent project straddling Nevada and Oregon, plus a half-dozen Wyoming prospects, which suggests it’s taking part in a multi-pronged recreation and hoping to time the subsequent lithium wave to perfection. The convertible word construction offers Chariot respiration room to trip out the lithium price doldrums, whereas positioning the company as a potential producer in a future price rebound.

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