In an intriguing A$82.6 million deal, global lithium giant Albemarle has secured an interest not only in aspiring company Patriot Battery Metals (ASX:PMT) but also in their promising Corvette lithium project in Canada.
An announcement on Tuesday revealed that Patriot had entered into a private placement of C$109 million (A$82.6 million) with Albemarle, granting Albemarle a 4.9% stake in Patriot on a fully diluted basis. Albemarle has committed not to increase its stake in the company beyond 4.9% on a fully-diluted in-the-money basis.
As part of the agreement, Patriot and Albemarle will enter into a non-binding memorandum of understanding to explore the feasibility of establishing a downstream lithium hydroxide plant integrated with the Corvette lithium project in northern Canada.
Patriot CEO, Blair Way, expressed confidence in the partnership, stating, "Both Patriot and Albemarle can play a significant role in developing the necessary front-end of the lithium chemicals supply chain in North America and Europe in the years ahead. The additional funding will enable us to accelerate the development activities at the Corvette Property, including drilling, permitting, and comprehensive studies."
The proceeds from the deal will be utilised to expedite the development of Patriot's Corvette Property, located in the James Bay region of Quebec. This strategic collaboration between Patriot and Albemarle marks an important step towards advancing the lithium sector and meeting the increasing demand for lithium chemicals in key markets.
