Volkswagen acquires 9.9% stake in lithium company Patriot for $48M

Patriot Battery Metals (PMETF) announced that it has entered into a subscription agreement with Volkswagen (VWAGY), providing for the issue and sale to Volkswagen of 15,557,500 Common Shares at a price of C$4.42 per share, for aggregate gross proceeds of approximately C$69M to be paid on closing in U.S. Dollars in the amount of $48M. The Subscription Price represents a 65% and 35% premium to the 30-day and 90-day volume weighted average trading price of the Common Shares on the Toronto Stock Exchange for the period ending December 17, 2024, the last trading day prior to the announcement of the Strategic Investment. Upon closing of the Strategic Investment, Volkswagen will own approximately 9.9% of Patriot’s issued and outstanding Common Shares on a pro forma non-diluted basis and will be granted certain rights pursuant to an investor rights agreement to be entered into between Volkswagen and the company. The proceeds from the Strategic Investment will be used for exploration, development and completion of a feasibility study on the Shaakichiuwaanaan Project, as well as for general and working capital purposes. As part of the Strategic Investment, Patriot will enter into a binding offtake term sheet with Volkswagen’s wholly owned and vertically integrated battery manufacturer, PowerCo, for Patriot to supply 100,000 tons of spodumene concentrate per year over a 10-year term. The Offtake is expected to supply PowerCo’s cell production activities in Europe and North America, including its battery cell factory in St. Thomas, Canada.