VANCOUVER, BC, Jan. 21,
2025 /PRNewswire/ - January
22, 2025 – Sydney,
Australia
Patriot Battery Metals Inc. (the "Company"or
"Patriot") (TSX: PMET) (ASX: PMT) (OTCQX: PMETF) (FSE: R9GA)
is pleased to announce that it has closed its previously announced
private placement for proceeds of C$69
million1 or US$48
million (the "Strategic Investment") to Volkswagen
Group ("Volkswagen" or "VW").
Following the closing of the Strategic Investment, Volkswagen
now owns approximately 9.9% of Patriot's issued and outstanding
Common Shares on a non-diluted basis.
The proceeds from the Strategic Investment will be used for
exploration, development and completion of a Feasibility
Study on the Company's Shaakichiuwaanaan Lithium Project in
Quebec, Canada, as well as for
general and working capital purposes.
Ken Brinsden, Patriot's CEO and
Managing Director said: "We are both pleased and proud to
welcome VW as a strategic shareholder. Their investment in Patriot
represents a significant step forward for the Company, while
working towards the delivery of one of the more important lithium
raw materials projects globally.
"As a high-grade and large-scale resource in North America, Shaakichiuwaanaan is
well-placed to help meet the substantial demand growth for lithium
that is forecast through to the end of this decade and beyond, and
in the process to grow key western supply chains.
"We look forward to working closely with PowerCo SE and VW to
support their significant investment in North American
markets," he added.
As previously outlined in the Company's announcement of
18 December 2024 in relation to the
Strategic Investment, the parties have entered into the
following:
- Binding offtake term sheet (the "Offtake") between
Patriot and Volkswagen's wholly-owned and vertically integrated
battery manufacturer, PowerCo SE ("PowerCo"), for Patriot to
supply 100,000 tonnes of spodumene concentrate (SC 5.5 target) per
year over a 10-year term;
- Investor rights agreement (the "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;2 and
- Non-binding Memorandum of Understanding (the "MoU") to
establish an ongoing strategic relationship between PowerCo and
Patriot to jointly explore and collaborate on shared strategic
objectives, including opportunities for the future development of
the Shaakichiuwaanaan Project centered around establishing a
cost-competitive, sustainable and ESG-compliant battery supply
chain that will attract government support and incentives and the
potential development of a chemical conversion facility.
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1 Based on
a USDCAD exchange rate of 1.4310 as at January 20,
2025.
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2 For ASX
purposes, such voting covenant confers the Company with a 'relevant
interest' in those Common Shares to which the voting rights are
subject of the voting covenant from time to time. The Company
therefore holds a 'substantial holding' (as those terms are defined
in the Australian Corporations Act) in itself equal to Volkswagen's
interest.
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For additional details regarding the terms and details of the
Strategic Investment, including the Offtake, Investor Rights
Agreement and MoU, please refer to the Company's press release
dated December 18, 2024.
About Patriot Battery Metals Inc.
Patriot Battery Metals Inc. is a hard-rock lithium exploration
company focused on advancing its district-scale 100%-owned
Shaakichiuwaanaan Property (formerly known as Corvette) located in
the Eeyou Istchee James Bay region of Québec, Canada, which is accessible year-round by
all-season road and is proximal to regional powerline
infrastructure. The Shaakichiuwaanaan Mineral Resource3,
which includes the CV5 & CV13 spodumene pegmatites, totals
80.1 Mt at 1.44% Li2O Indicated, and 62.5 Mt at 1.31% Li2O
Inferred, and ranks as the largest lithium pegmatite resource in
the Americas, and the 8th largest lithium pegmatite resource in the
world. Additionally, the Shaakichiuwaanaan Property hosts multiple
other spodumene pegmatite clusters that remain to be drill tested,
as well as significant areas of prospective trend that remain to be
assessed.
About PowerCo SE and Volkswagen AG
PowerCo's parent company, Volkswagen AG, also known as the
Volkswagen Group, manufactures and sells automobiles in
Germany, other European countries,
North America, South America, the Asia-Pacific, and internationally. The company
operates through four segments: Passenger Cars and Light Commercial
Vehicles, Commercial Vehicles, Power Engineering, and Financial
Services. From battery management to cell production and recycling
– the Volkswagen Group is evolving into a profitable expert
throughout the entire lifecycle of the key component, the battery.
In the process, battery-cell technology will become one of the
company's core areas of expertise. Volkswagen AG's subsidiary,
PowerCo SE, was established in 2022 and focuses on developing
battery cells.
This news release has been approved by the Board of Directors of
the Company.
"KEN BRINSDEN"
Kenneth Brinsden, President, CEO
& Managing Director
Forward-Looking Information
This news release contains "forward-looking information" or
"forward-looking statements" within the meaning of applicable
securities laws and other statements that are not historical facts.
Forward-looking statements are included to provide information
about management's current expectations and plans that allows
investors and others to have a better understanding of the
Company's business plans and financial performance and condition.
All statements included in this news release regarding the
Company's strategy, future operations, financial position,
prospects, plans and objectives of management are forward-looking
statements that involve risks and uncertainties. Forward-looking
statements are typically identified by words such as "plan",
"expect", "estimate", "anticipate", "believe", "may", "could",
"would", "achieve", "explore", "develop", "establish" or "will". In
particular and without limitation, this news release contains
forward-looking statements pertaining to the expected use of
proceeds derived from the Strategic Investment, the expectation
that the Company will complete a feasibility study for the
Shaakichiuwaanaan Project, forecast growth in demand for
lithium through to the end of the decade and beyond, and the
potential for Volkswagen and PowerCo to collaborate on
certain shared strategic objectives identified in the MoU.
Forward-looking information is based upon certain assumptions
and other important factors that, if untrue, could cause the actual
results, performance or achievements of the Company to be
materially different from future results, performance or
achievements expressed or implied by such information or
statements. There can be no assurance that such information or
statements will prove to be accurate. Key assumptions upon which
the Company's forward-looking information is based include the
total funding required and timeline to complete the feasibility
study for the Shaakichiuwaanaan Project, the ability of the Company
to achieve Project FID, the economic feasibility of the
Shaakichiuwaanaan Project, the ability of the Company to finance
the development of the Shaakichiuwaanaan Project on commercially
viable terms, receipt of all permits necessary to construct and
operate the Shaakichiuwaanaan Project, and the ability of the
Company to produce lithium at the Shaakichiuwaanaan Project to
satisfy its obligations under the Offtake. Readers are cautioned
that the foregoing list is not exhaustive of all factors and
assumptions considered by the Company.
Forward-looking statements are also subject to risks and
uncertainties facing the Company's business, any of which could
have a material adverse effect on the Company's business, financial
condition, results of operations and growth prospects. Some of the
risks and the uncertainties that could cause the Company's actual
results to differ materially from those expressed in the
forward-looking statements include, among others, the ability of
the Company to satisfy the conditions precedent in the Offtake, the
commercial terms set forth in the Offtake given the early stage of
the Shaakichiuwaanaan Project, the development of the
Shaakichiuwaanaan Project, currency exchange rates and the ability
of the Company to satisfy its contractual obligations. In addition,
readers are directed to carefully review the detailed risk
discussion in the Company's most recent Annual Information Form
filed on SEDAR+, which discussion is incorporated by reference in
this news release, for a fuller understanding of the risks and
uncertainties that affect the Company's business and
operations.
Although the Company believes its expectations are based upon
reasonable assumptions and has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be factors unknown to the Company that could
cause events or results to differ from management's expectations.
There can be no assurance that forward-looking information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information. If
any of these risks or uncertainties materialize, actual results may
vary materially from those anticipated in the forward-looking
statements referenced herein. Due to the risks, uncertainties and
assumptions inherent in forward-looking statements, readers should
not place undue reliance on forward-looking statements.
Forward-looking statements referenced herein are presented
for the purpose of assisting investors in understanding the
Company's business plans, financial performance and condition and
may not be appropriate for other purposes. The Company disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except to the extent required by applicable law. The
Company qualifies all of the forward-looking statements in this
news release by reference to these cautionary statements.
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3
Shaakichiuwaanaan (CV5 & CV13) Mineral Resource Estimate (80.1
Mt at 1.44% Li2O and 163 ppm Ta2O5 Indicated, and 62.5 Mt at 1.31%
Li2O and 147 ppm Ta2O5 ppm Inferred) is reported at a cut-off grade
of 0.40% Li2O (open-pit), 0.60% Li2O (underground CV5), and 0.80%
Li2O (underground CV13) with an Effective Date of August 21, 2024
(through drill hole CV24-526) as reported in the Company's "NI
43-101 Technical Report Preliminary Economic Assessment for the
Shaakichiuwaanaan Project" prepared by Todd McCracken, P.Geo., Hugo
Latulippe, P.Eng., Shane Ghouralal, P.Eng., MBA, Luciano
Piciacchia, P.Eng., Ph.D, Ryan Cunningham, M.Eng., P.Eng. and
Nathalie Fortin, P.Eng., M.Env., which is available on SEDAR+.
Mineral Resources are not Mineral Reserves as they do not have
demonstrated economic viability.
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Competent Person Statement (ASX Listing Rule 5.23)
The mineral resource estimate in this release was reported by
the Company in accordance with ASX Listing Rule 5.8 on August 5, 2024. The Company confirms that, as of
the date of this announcement, it is not aware of any new
information or data verified by the competent person that
materially affects the information included in the announcement and
that all material assumptions and technical parameters underpinning
the estimates in the announcement continue to apply and have not
materially changed. The Company confirms that, as at the date of
this announcement, the form and context in which the competent
person's findings are presented have not been materially modified
from the original market announcement.
The production target referred to in this release was
reported by the Company in accordance with ASX Listing Rule 5.16 on
August 21, 2024. The Company confirms
that, as of the date of this announcement, all material assumptions
and technical parameters underpinning the production target in the
original announcement continue to apply and have not materially
changed.
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SOURCE Patriot Battery Metals Inc.
