Patriot Battery Metals Inc. (“Patriot”) announced the successful closing of a private placement, securing proceeds of C$69 million (US$48 million) from the Volkswagen Group (“Volkswagen” or “VW”). This strategic investment grants Volkswagen approximately 9.9% ownership of Patriot’s issued and outstanding common shares on a non-diluted basis.
The funds will be utilized for the exploration, development, and completion of a feasibility study on Patriot’s Shaakichiuwaanaan Lithium Project in Quebec, Canada. Additionally, the investment will support general corporate purposes and working capital needs.
Ken Brinsden, CEO and Managing Director of Patriot, expressed enthusiasm about the partnership: “We are pleased and proud to welcome VW as a strategic shareholder. Their investment represents a significant step forward for the Company as we work toward delivering one of the world’s most important lithium raw materials projects. As a high-grade and large-scale resource in North America, Shaakichiuwaanaan is well-positioned to meet the substantial growth in lithium demand forecasted through the end of this decade and beyond. We look forward to working closely with PowerCo SE and VW to support their significant investment in North American markets.”
As part of the strategic investment, the parties have entered into several agreements:
- Binding Offtake Term Sheet: Patriot will supply PowerCo SE, Volkswagen’s wholly-owned and vertically integrated battery manufacturer, with 100,000 tonnes of spodumene concentrate (targeting SC 5.5) per year over a 10-year term.
- Investor Rights Agreement: Volkswagen will have certain rights, including the right to participate in future equity raises by Patriot and a voting support covenant in favor of management, subject to customary conditions.
- Non-Binding Memorandum of Understanding (MoU): Patriot and PowerCo aim to establish an ongoing strategic relationship to jointly explore and collaborate on shared strategic objectives. This includes opportunities for future development of the Shaakichiuwaanaan Project, focusing on establishing a cost-competitive, sustainable, and ESG-compliant battery supply chain that could attract government support and incentives, as well as the potential development of a chemical conversion facility.
Patriot Battery Metals Inc. is a hard-rock lithium exploration company focused on advancing its wholly-owned Shaakichiuwaanaan Property (formerly known as Corvette) located in the Eeyou Istchee James Bay region of Québec, Canada. The property is accessible year-round by all-season road and is close to regional powerline infrastructure. The Shaakichiuwaanaan Mineral Resource, which includes the CV5 and CV13 spodumene pegmatites, totals 80.1 million tonnes at 1.44% Li₂O indicated and 62.5 million tonnes at 1.31% Li₂O inferred. This resource ranks as the largest lithium pegmatite resource in the Americas and the eighth largest globally.
Source: PR Newswire
