Chariot Resources (ASX:CC9) restructures balance sheet with A$3.5 million refinancing facility

Chariot Resources has moved to consolidate its debt position, securing a A$3.5 million loan facility aimed at simplifying its capital structure and providing near-term funding flexibility.

The agreement replaces existing liabilities and resets the company’s repayment profile over a 12-month horizon, with implications for liquidity management and future capital planning.

Highlights

• Secured A$3.5 million loan facility with GAM Company Pty Ltd
• Proceeds to repay A$2.824 million of existing debt and transaction costs
• Remaining funds available for working capital
• Interest structured as 9% upfront for first 6 months, then 18% per annum for the following 6 months
• Bullet repayment at 12 months, with optional early repayment
• Mandatory repayment of at least 30% of net proceeds from any equity raising after 10 April 2026 and before maturity
• Total fees include A$210,000 arrangement fee, up to A$10,000 legal fees, and A$105,000 retainer
• 15,000,000 listed options proposed for issuance to lender, subject to shareholder approval, with exercise price of A$0.10 and expiry of 19 December 2028

The refinancing is structured to fully discharge existing debt facilities and associated security once the new loan is funded, with release documentation to be lodged by the relevant parties.

This transition consolidates liabilities into a single secured instrument supported by a general security deed over all present and after-acquired property of the company.

From a capital management standpoint, the facility introduces a defined repayment horizon, requiring a single repayment at maturity 12 months from the advance date unless repaid earlier.

While optional prepayment provides some flexibility, the structure places emphasis on the company’s ability to manage liquidity or access capital markets within that timeframe.

The inclusion of a mandatory repayment clause tied to equity raising activity reinforces this framework, requiring at least 30% of net proceeds, after reasonable transaction costs, to be applied toward the loan if a raising occurs after 10 April 2026 and prior to maturity.

Cost of capital is structured with an upfront interest payment equal to 9% of the loan for the first 6 months, followed by an interest rate of 18% per annum for the remaining 6 months.

In addition, the facility incorporates an arrangement fee of A$210,000, legal fees up to A$10,000, and a retainer of A$105,000 payable to the lender’s agent, GBA Capital Pty Ltd, collectively defining the economic terms of the financing.

The agreement also includes a proposed issuance of 15,000,000 listed CC9O options to the lender or its nominees, subject to shareholder approval.

The options carry an exercise price of A$0.10 and expire on 19 December 2028, with any failure to obtain shareholder approval requiring the company to cash settle the obligation based on recent trading benchmarks, subject to a minimum price of A$0.03.

Beyond the financing, Chariot continues to position itself as a lithium-focused exploration company with assets in the United States and Nigeria.

Its portfolio includes the Black Mountain project in Wyoming and the Resurgent project spanning Nevada and Oregon, alongside exploration pipeline projects and a Nigerian lithium portfolio covering approximately 254 square kilometres across multiple licences and leases.

The company has indicated it anticipates completing the Nigerian acquisition by the end of May 2026.

In this context, the refinancing provides a reset of the balance sheet while maintaining operational continuity.

The 12-month maturity profile, combined with the linkage to potential equity raising activity, frames the company’s near-term funding strategy and establishes a clear pathway for managing liabilities alongside ongoing project development.