Chariot Resources Ltd has entered into a binding term sheet with C&D (Hainan) Co., Ltd and Hong Kong ZhongNuo Energy Limited for a proposed partner-funded drilling, trial-mining and direct shipping ore offtake program at one project within the company’s Nigerian lithium portfolio.

Under the proposed arrangement, ZhongNuo will fund and execute a minimum 1,500-metre diamond drilling program across at least three pits. Subject to satisfactory results and a definitive agreement, ZhongNuo would also fund and operate potential trial mining at the selected project.

The parties have established a 90-day exclusivity period to complete site reviews, select a single project from the Fonlo, Iganna and Saki areas, and negotiate a definitive agreement. C&D has paid Chariot a refundable US$100,000 exclusivity fee. Upon executing the definitive agreement, C&D would provide a US$500,000 interest-free prepayment to be amortised against future shipments.

C&D, a wholly owned subsidiary of Xiamen C&D Inc., would act as the offtake buyer and US dollar payer for qualifying direct shipping ore. Pricing would follow a market-linked formula referencing the Shanghai Metals Market battery-grade lithium carbonate price, with no party required to deliver shipments where the calculated price falls below US$150 per dry metric tonne. Potential Phase 1 trial mining is capped at a maximum of 240,000 tonnes.

The Fonlo project forms part of Chariot’s Nigerian lithium portfolio, which is being acquired from Continental Lithium Limited under an agreement initially announced in July 2025. Chariot previously negotiated a A$1.425 million strategic share subscription agreement with Greatpower that lapsed in April 2026 after failing to secure required outbound direct investment approvals, prompting engagement with alternative partners.

“The Term Sheet provides a structured pathway to evaluate one project from our Nigerian portfolio with proposed partner funding for drilling and potential trial mining, together with a market-linked offtake pathway through C&D. The phased structure is important: the parties must first complete site reviews, diligence and drilling, and the commercial program would proceed only if definitive agreements are executed and all conditions are satisfied.”

— Shanthar Pathmanathan, Executive Chair and Managing Director

The term sheet is binding only regarding exclusivity, site review processes, confidentiality, compliance and governing law. The substantive drilling, trial-mining, funding and offtake arrangements remain conditional upon completing due diligence, executing a definitive agreement, finalising the Nigerian portfolio acquisition, confirming mineral titles and securing required regulatory approvals before any commercial program can commence.

Read the full announcement: C&D, ZhongNuo and CC9 Sign Nigerian Lithium DSO Term Sheet