Patriot Battery Metals Inc. [PMET-CSE, PMETF-OTCQB, R9GA-FSE] has closed a previously announced $69 million private placement financing with Volkswagen Group. The German auto giant now owns a 9.9% of the issued and outstanding shares of Patriot Battery on a non-diluted basis.
Proceeds are earmarked for exploration, development and completion of a feasibility study on the company’s Shaakichiuwaanaan lithium property, which is located in the Eeyou Istchee James Bay region of Quebec.
“We are both pleased and proud to welcome VW as a strategic shareholder,’’ said Patriot Battery CEO and managing director Ken Brinsden. “Their investment in Patriot represents a significant step forward for the company, while working towards delivery of one of the more important lithium raw material projects globally,’’ he said.
As announced on December 18, 2024, Patriot has agreed to supply 100,000 tonnes of spodumene concentrate annually over a 10-year period to Volkswagen’s wholly-owned and vertically integrated battery manufacturer PowerCo SE.
The deal includes an investor rights agreement whereby Volkswagen will have certain rights, including the right to participate in future equity raises by the company and provide a voting support covenant in favour of management in each case subject to certain customary conditions.
The parties have also reached a non-binding memorandum of understanding to establish a continuing strategic relationship between PowerCo and Patriot to jointly explore and collaborate on shared strategic objectives, including future development of the Shaakichiuwaanaan project, centred around establishing a cost-competitive, sustainable and ESG (environmental, social and governance)-compliant battery supply chain that will attract government support and incentives and the potential development of a chemical conversion facility.
Patriot Battery Metals has been targeting the CV Lithium Trend, an emerging spodumene pegmatite district discovered by the company in 2017. It spans more than 25 kilometres, covering the FCE West, FCE East and Corvette claim blocks. It consists of numerous spodumene pegmatite occurrences, which include the CV1, CV2, CV3, CV5, CV6, and CV7 pegmatites, highlighted by the CV5 and CV1 Pegmatite.
A preliminary economic assessment (PEA) was announced for the CV5 Pegmatite in August, 2024. The PEA outlines the potential for a competitive and globally significant high-grade lithium project targeting up to 800,000 tonnes per annum of spodumene concentrate using a simple Dense Media Separation (DMS) only process flowsheet.
The company has recently completed a significant core sampling program to provide additional representative material for the next phase of mineral processing test work in support of the ongoing feasibility study on the CV5 Spodumene Pegmatite. This program will provide significant quantities of representative spodumene concentrate for any future downstream test programs.
On Thursday, the shares eased 1.18% or $0.04 to $3.35. They trade in a 52-week range of $9.76 and $2.29.
