Patriot Battery Metals Share Price Surges on AU$123 Million Investment

In a significant development for the lithium industry, Patriot Battery Metals Inc. (ASX: PMT) has announced a strategic investment of approximately C$109 million from Albemarle Corporation. The investment will see Albemarle, a leading player in the lithium market, subscribe to 7.1 million common shares of Patriot, representing a 7% premium to the closing price on the TSX Venture Exchange.

Source: Kapitales Research

The influx of funds will be channeled towards accelerating the development of Patriot's flagship Corvette Lithium Project in Quebec, Canada. As one of the largest lithium pegmatite resources in the Americas, the Corvette Project holds great potential to bolster the North American and European battery materials supply chain.

The partnership between Patriot and Albemarle also includes an investor rights agreement, granting Albemarle certain participation rights in future equity capital raises. Additionally, the companies will explore the possibility of a downstream lithium hydroxide plant integrated with the Corvette Lithium Project.

Strategic Investment Agreement Sealed

Vancouver, BC, Canada, July 31, 2023 - Patriot Battery Metals Inc. (ASX: PMT) has recently inked a significant C$109 million Strategic Investment deal with Albemarle Corporation, propelling the share price of Patriot to new heights. Albemarle, a major player in the lithium industry, will subscribe to approximately 7.1 million common shares of Patriot at C$15.29 per share, representing a 7% premium to the closing price on the TSX Venture Exchange (TSXV) on July 31, 2023.

Boosting Corvette Lithium Project Development

The fresh funds from this investment will be utilized to expedite the development activities at Patriot's Corvette Lithium Project, situated in Quebec, Canada. The project hosts the largest lithium pegmatite resource in the Americas, offering immense potential for the battery materials supply chain in North America and Europe.

Patriot's President and CEO, Blair Way, expressed enthusiasm about the partnership with Albemarle and emphasized their joint commitment to building a robust front-end to the lithium chemicals supply chain. Alexander Thompson, VP Lithium Resources at Albemarle, also expressed anticipation for collaborating with Patriot to explore opportunities in the North American battery materials supply chain.

Investor Rights Agreement for Enhanced Collaboration

In addition to the strategic investment, Patriot and Albemarle will enter into an Investor Rights Agreement, granting Albemarle rights to receive notices for future equity capital raises to maintain its ownership level. The agreement also imposes certain restrictions on Albemarle's share disposition, ensuring alignment with management's recommendations on crucial matters.

Moreover, Patriot will engage in a non-binding Memorandum of Understanding (MOU) with Albemarle to study the viability of a downstream lithium hydroxide plant integrated with the Corvette Lithium Project. This MOU will encompass an exclusivity period of nine months, with potential extensions.

Closing and Approval

The Strategic Investment is scheduled to conclude on or before August 4, 2023, pending approval from the TSX Venture Exchange and other customary closing conditions. The newly issued common shares will be subject to a statutory hold period of four months and one day.

Macquarie Capital is acting as the financial advisor to Patriot and will receive an advisory fee of 3% of the gross proceeds from the Strategic Investment.

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