Chariot Corporation to renew ownership of Horizon and Halo lithium projects in Nevada
Chariot Corporation (ASX: CC9) and part-owned subsidiary Mustang Lithium have announced they will be renewing their ownership of two lithium projects in Nevada, USA.
Mustang, in which Chariot holds a 24.1% interest, is finalising arrangements to re-process the Horizon and Halo lithium projects, located in a well-known lithium neighbourhood.
The projects are being returned after Pan American Energy and POWR Lithium elected not to pay the required maintenance fees, thereby surrendering their respective interests in the claims.
Market decline cited
The two companies cited the current state of the global lithium market, with oversupply and sliding demand leading to a dramatic fall in the price of the critical battery metal.
The two mining permits remain in good standing after Mustang completed a capital raise of around $370,000 to pay the fees necessary to maintain its interest in the projects.
Chariot participated in the offering by investing around $89,000 in the raising.
Follow-up work
Chariot and Mustang are now positioned to follow up on exploration work undertaken by Pan American Energy, including the production of a maiden mineral resource estimate for the Horizon project of 1.3 million tonnes lithium carbonate equivalent (LCE) in the Indicated category and an Inferred resource of 8.8Mt LCE.
The Horizon project consists of 839 mineral claims over a total area of 17,334 acres within the Big Smoky Valley in Nevada’s Tonopah mining district.
The nearby Halo project consists of 98 mineral claims over a total area of 2,024 acres.
Prime neighbourhood
The Horizon and Halo projects neighbour American Lithium’s TLC project – which contains an estimated 10.69Mt of LCE – and American Battery Technology’s Tonopah Flats project, estimated to have a resource of 18.63Mt LCE.
As part of the termination process, Pan American Energy and POWR are required to deliver to Mustang’s subsidiaries copies of all records, information and data related to the Horizon and Halo lithium projects.
Mustang has also made arrangements to take custody of the relevant drill cores for the two projects.