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- Patriot Battery Metals (PMT) has won commitments for $123 million in funding from Albemarle Corporation
- The funding comes through a placement subscription agreement, where Albermarle will pick up more than seven million common shares in PMT on the TSXV
- Following the strategic investment, Albemarle will own 4.9 per cent of Patriot’s issued and outstanding common shares
- Patriot was recently rumoured to be acquired by Pilbara Minerals but a contested short seller’s report may have complicated matters
- Shares in PMT last traded at $1.51
Patriot Battery Metals (PMT) has secured a C$109 million (A$123 million) funding commitment from NYSE-listed lithium heavyweight Albemarle Corporation.
Through a subscription agreement, Albemarle will subscribe for a total of 7.1 million PMT common shares at C$15.29 apiece.
This represents a seven per cent premium to the closing price of Patriot’s common shares on the TSX Venture Exchange (TSXV), where Patriot is also listed.
Following the strategic investment, Albemarle will own 4.9 per cent of Patriot’s issued and outstanding common shares. On a non-diluted, issued, and outstanding basis, this amounts to 6.4 per cent.
Patriot announced the fresh funds would go towards accelerating the development of its Corvette lithium project.
“We look forward to collaborating with Patriot to better understand the Corvette property and the opportunities this project represents for the North American battery materials supply chain,” Albemarle Lithium Resources Vice President Alexander Thompson said.
The move may surprise some, given it was rumoured Pilbara Minerals (PLS) was eyeing a potential acquisition of Patriot.
The latter was also hit by a short seller’s report in July, underscoring what was a busy month for the company.
“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,” Patriot CEO Blair Way said.
“The additional funding will allow us to more aggressively advance the Corvette Property through drilling, permitting, study work and more.”
Recently, Albemarle and Mineral Resources (MIN) updated a lithium joint venture agreement.
That deal saw MinRes increase its stake in the WA-based Wodgina lithium mine to 50 per cent while Albemarle invested around $570 million in the Kemerton lithium hydroxide plant.
Shares in PMT last traded at $1.51.
