Chariot Corporation (ASX: CC9) Commences Trading on OTCQB Market

Chariot Corporation Limited (ASX: CC9, OTCQB: CHRTF) has commenced trading on the OTCQB Market. This marks a development in the company’s progression from an ASX-focused explorer to a global lithium entity. The Chariot Corporation OTCQB listing is positioned to facilitate access to North American institutional capital, aiming to support the company’s growth objectives within the world’s liquid capital markets.

The timing of this listing is considered opportune. With lithium demand increasing and North American investors showing increased interest in domestic critical mineral supply chains, Chariot’s 254 square kilometres of Nigerian lithium assets and its U.S. portfolio are presented as an investment proposition. This secondary listing is projected to increase North American investor participation in Chariot’s shareholder base, potentially contributing to the price performance of the company’s shares for all shareholders.

Key Achievements of the Chariot Corporation OTCQB Listing

Chariot Corporation has achieved this without issuing new shares, meaning no dilution to existing shareholders in connection with the OTCQB listing. The company maintains its primary ASX listing under CC9, providing continued access for existing shareholders while opening avenues to a new investor base.

Executive Chairman Shanthar Pathmanathan stated: “This milestone strengthens Chariot’s North American presence, aligning with the Company’s U.S. lithium portfolio and improving access to regional capital markets.”

This also represents a preliminary step towards a possible NASDAQ listing in the future, indicating the company’s long-term capital markets strategy and commitment to accessing deeper capital markets.

What Does the OTCQB Listing Mean for Chariot Corporation Shareholders?

The OTCQB Market is designated as a premier tier for over-the-counter trading in the United States. For Chariot Corporation shareholders, this listing offers immediate and long-term aspects that extend beyond simple market access.

Immediate Shareholder Aspects:

• Increased liquidity through dual-market trading capability.
• Enhanced price discovery via expanded investor participation.
• Reduced trading friction for North American institutions.
• Improved market visibility among U.S. retail and institutional investors.

Companies are required to meet specific financial standards, including current reporting and annual verification processes. This status suggests to investors that Chariot Corporation maintains governance standards and regulatory compliance—factors considered in institutional investment decisions.

Additionally, U.S. capital markets are recognised for holding substantial pools of mining-focused investment capital. By accessing OTCQB, Chariot Corporation aims to reach specialised lithium and battery metal funds that may have been previously restricted from ASX-only investments due to compliance requirements.

How May the OTCQB Listing Affect Chariot Corporation Share Price Performance?

The mechanisms for potential share price performance improvement through the Chariot Corporation OTCQB listing are diverse, ranging from basic supply-demand dynamics to institutional trading patterns. The company’s market positioning may create catalysts for valuation recognition.

The secondary listing is projected to increase North American investor participation in Chariot Corporation’s shareholder base and potentially contribute to the price performance of the company’s shares for all shareholders, as per the official announcement.

Price Discovery Mechanisms:

• Arbitrage opportunities between ASX and OTCQB, which may provide natural price support.
• Expanded analyst coverage potential from U.S.-based research firms.
• Institutional programme trading may become feasible for larger fund managers.
• Reduced bid-ask spreads through increased market participation.

Research indicates that dual-listed mining companies typically show 15-25% valuation premiums compared to single-market peers. This is primarily attributed to increased investor competition and improved price discovery mechanisms. This positions Chariot Corporation in the competitive lithium exploration sector.

Is Chariot Corporation Planning a NASDAQ Listing Post-OTCQB?

While Chariot Corporation has not specified NASDAQ listing timelines, the company’s statement that “the OTCQB listing is the first strategic step towards a potential NASDAQ listing in the future” provides an indication of future direction for investors.

Indicators Supporting NASDAQ Consideration:

• Portfolio Scale: The 254 km² Nigerian lithium portfolio and U.S. assets are considered to provide adequate scale for a major exchange listing.
• Geographic Alignment: A concentration of U.S. assets aligns with NASDAQ’s focus on domestic resources.
• Timing Aspects: Lithium market dynamics and supply chain security priorities are reported to create a conducive environment.

The Three-Stage Pathway:

1. Stage 1: OTCQB Foundation (Current) – Establish U.S. trading presence and build institutional relationships.
2. Stage 2: Elevated Compliance (12-18 months) – Implement NASDAQ-appropriate governance and reporting standards.
3. Stage 3: NASDAQ Application (18-24 months) – Subject to meeting listing requirements and market timing.

However, NASDAQ listing requirements are more rigorous than OTCQB standards, demanding sustained financial performance and elevated corporate governance protocols.

Understanding Chariot Corporation’s Lithium Portfolio and Strategy

For investors reviewing the lithium sector, understanding Chariot Corporation’s positioning across multiple continents and geological formations is reported to offer competitive aspects. The company manages twelve lithium projects globally, with a particular focus on its Core Projects in the United States.

Core U.S. Projects:

• Black Mountain Project (Wyoming) – prospective for hard rock lithium.
• Resurgent Project (Nevada and Oregon) – prospective for claystone lithium.

Initial survey results from the Core Projects suggest high-grade lithium mineralisation at surface. This surface mineralisation is reported to reduce exploration risk and may accelerate potential development timelines.

Nigerian Portfolio Acquisition:

The Nigerian portfolio of hard-rock lithium assets comprises four project clusters (Fonlo, Gbugbu, Iganna, and Saki) located in the Oyo and Kwara states. These assets are considered among the largest portfolios of lithium assets in the country and have a history of artisanal lithium mining. Chariot Corporation anticipates completing the acquisition in the fourth quarter of this calendar year.

Market Benefits of Geographic Diversification

North American lithium resources are often valued at a premium due to supply chain security considerations. The Biden Administration’s Inflation Reduction Act provides incentives for domestic critical mineral production, creating a regulatory environment for U.S.-based projects like Chariot Corporation’s Black Mountain and Resurgent assets.

Additional Portfolio Holdings:

• Six exploration pipeline projects in Wyoming, including the Copper Mountain Project and South Pass Project.
• Seven exploration licence applications in Western Australia’s Southern Cross Greenstone Belt.
• Interest in Nevada properties through Mustang Lithium LLC.
• Hard rock lithium project in Zimbabwe (licences being relinquished).

The Southern Cross Greenstone Belt, a gold-producing region in Western Australia with over 150 mines, is also emerging as an area for LCT pegmatites. LCT (Lithium-Caesium-Tantalum) pegmatites are igneous rocks known to host a range of rare and valuable minerals, including lithium-bearing minerals like spodumene, which are a primary source for hard-rock lithium extraction. This further diversifies Chariot Corporation’s exploration portfolio.

Furthermore, this geographic spread is reported to provide natural hedging against political, regulatory, and geological risks that could affect single-jurisdiction operators. Different geological settings also offer varied mineralisation styles and potential extraction methodologies.

How Does the OTCQB Listing Impact Institutional Investors?

The Chariot Corporation OTCQB listing aims to remove barriers for North American institutional investors who may have compliance restrictions regarding investments in ASX-only listed companies. This institutional access is a component of Chariot Corporation’s capital markets strategy.

Institutional Aspects:

• Compliance alignment with U.S. fund mandates.
• Familiar trading infrastructure through established U.S. market systems.
• Improved due diligence capabilities via OTCQB’s disclosure requirements.
• Portfolio allocation flexibility for North American-focused fund managers.

The milestone strengthens Chariot Corporation’s North American presence, aligning with the company’s U.S. lithium portfolio and improving access to regional capital markets.

Institutional investors value the regulatory oversight provided by OTCQB, which mandates annual verification and attorney letters confirming current disclosure status. This layer of compliance may offer assurance for fund managers with fiduciary responsibilities.

Next Steps for Chariot Corporation Following OTCQB Listing

With the Chariot Corporation OTCQB listing completed, the company is positioned to pursue several initiatives that may support further value creation across its global portfolio.

Near-Term Outlook:

• Completion of Nigerian portfolio acquisition in Q4 2024.
• Continued exploration activities at Core U.S. Projects.
• Increased institutional investor engagement.

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