Patriot Battery Metals (TSXV: PMET) has received a massive vote of confidence from Albemarle Corporation (NYSE: ALB), who has elected to take a 4.9% stake in the company on a fully diluted in-the-money basis.
The arrangement will see Albemarle invest C$109 million into Patriot at $15.29 per share, a figure that represents a 7% premium to yesterday’s closing price of $14.30 per share. Proceeds from the investment are to be used to accelerate development of Patriot’s flagship Corvette property in Quebec and for general corporate purposes.
“We could not be more pleased to have welcomed Albemarle to invest in Patriot. I believe both Patriot and Albemarle can be a big part of building out the required front-end to the lithium chemicals supply chain in North America and Europe over the coming years,” commented Blair Way, CEO of Patriot Battery Metals.
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As part of the investment, Albemarle will retain the right for a twelve month period to maintain its ownership in the company in the event of future financings, under the agreement that the company will not exceed 4.9% ownership in Patriot.
The two parties will also enter into a non-binding memorandum of understanding to assess partnership opportunities, particularly related to the viability of a downstream lithium hydroxide plant that would be integrated with Corvette. Albemarle maintains a nine month exclusivity window for such an arrangement as a result of its investment.
The investment follows the release of a maiden resource estimate for the Corvette property, which was focused around the CV5 pegmatite. The resource amounted to 109.2 million inferred tonnes at 1.42% Li2O, with contained LCE amounting to 3,835,000 Mt.
Patriot Battery Metals last traded at $14.30 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
