Transcription of The Stock Network Interview with Chariot Resources (ASX:CC9), Managing Director, Shanthar Pathmanathan
Lel Smits: Chariot Resources has significantly expanded its strategic position in the McDermott Caldera after staking 573 additional claims at its Resurgent East project in Nevada, Oregon. The move nearly doubles the company’s landholding following a disciplined consolidation during the lithium downturn and strengthens its exposure alongside major neighboring developments, including Thacker Pass and Jindalee’s McDermott project. Chariot Resources Managing Director Shanthar Pathmanathan joins me today from New York to discuss the expanded land position, the improving lithium market, and the company’s plans to unlock the potential of Resurgent.
Shanthar, welcome back to the Stock Network.
Shanthar Pathmanathan: Thank you, Lel, for having me.
Lel Smits: Now, Chariot has staked 573 new claims, nearly doubling its position at Resurgent.What drove the decision to expand now? And also, what does this mean for the project’s long-term potential?
Shanthar Pathmanathan: So, Lel, I think, firstly, as your viewers may know, the lithium market is back with some force. The carbonate price is between $20,000 and $30,000 at the moment. So it’s doubled or tripled in the time that we’ve revived the company in the last year or so.
So with that, we decided to move in and take back some of the claims that we relinquished along the way. We did so to save cash or capital during the lithium downturn. I think that was a prudent thing to do.
But we started to see some interest in these particular claims from third parties. And we wanted to basically preempt that and get out ahead and grab the claims. The claims that we’ve gotten are closest to Thacker Pass, which the US government’s invested in.
And it’ll be developed at a total cost of over $5 billion of capital invested. $2.2 billion of that comes from a loan from the US Department of Energy. And that’s expected to come into first production in 2028.
So I think with things coming to a head, we just wanted to go back and get the old ground that we had. And we think similar to Thacker Pass, there’s probably one or two deposits in that area. We’ve purposefully got more than what we need for one deposit.
Again, we think the whole caldera, which is an ancient lake, is mineralised. And so yeah, we just wanted to build out our position there.
Lel Smits: Fantastic. As you mentioned, Resurgent does sit adjacent to Lithium America’s Thacker Pass development. Also Jindalee’s McDermott project. How does this strategic location enhance chariots exploration, also partnership opportunities?
Shanthar Pathmanathan: Yeah, terrific. So I see McDermott Caldera as the future Saudi Arabia of lithium. It’s already got the two largest claystone deposits on the planet. The US predominantly has claystone.
It does not really have much in the way of brine. There’s some oilfield brines, but they’re extremely low grade out in the East Coast. And then there’s spodumene also in urban areas on the East Coast.
So the US will have to make the claystone part work. And the caldera is, to my knowledge, the largest endowment of claystone on the planet. And we want to make the third discovery of a massive resource there.
And so yeah, we see a inbound capital activity interest. And we just want to be positioned by getting this extra ground. And Shanthar, in terms of preparing for the next phase of growth, you’ve got 32 high priority drill targets already identified, permitting underway for a maiden drilling campaign.
Lel Smits: What are the key milestones investors should be watching for over the next 12 months?
Shanthar Pathmanathan: Well, so the drilling will be a given. We’ve applied for permits and we’ll be going ahead and drilling at Resurgent. The US portfolio as a whole, we would like to look at different options for that.
So one of the options that we’re considering, similar to what Jindalee has done, given how hot or active the SPAC market is, the special purpose acquisition company market, essentially fairly large cash boxes that are listed looking for projects and for assets to come into them. So we’re potentially going to consider putting this set of assets into a SPAC in the United States as a prelude to a NASDAQ listing. So through that deal, you end up being listed on the NASDAQ.
I mean, these particular assets. The other option we’re looking at is to bring in a partner as a joint venture partner. So we’re taking more of a strategic view with the US assets because, you know, I just want to remind everyone that our focus at this point is still very much on Nigeria, right? But at the same time, we’re cognizant that there’s a whole bunch of value here and we want to progress it and maybe realise that value in a different way.
Lel Smits: I appreciate the update from Chariot Resources. Thank you for joining me, Shanthar from New York.
Shanthar Pathmanathan: Thank you.
Ends