Mentioned:
One of the largest car companies in the entire world is now betting on a Canadian lithium company. But, why?
What’s happening:
- Volkswagen has announced they will invest $69M CAD into Patriot Battery Metals (TSX: PMET) as part of a new strategic financing
By the numbers:
- Volkswagen will purchase common shares in Patriot Battery Metals at $4.42 CAD per share, which represents roughly a 65% premium to the share price over the past month of trading
- Patriot Battery Metals and Volkswagen’s subsidiary PowerCo have also entered into an offtake agreement in which Patriot Battery Metals will supply them with 100,000 tonnes of spodumene concentrate annually
Why it matters:
- Patriot Battery Metals owns the Shaakichiuwaanaan Property located in James Bay, Quebec which is one of the most significant lithium deposits in all of North America
Going deeper:
- While the prices of lithium carbonate have declined significantly from their all time highs, there have still been multiple big deals announced in the public markets of late including Lithium Americas (NYSE: LAC) securing a multi billion dollar loan for their Thacker Pass project and Rio Tinto (NYSE: RIO) taking out Arcadium Lithium (NYSE: ALTM) in a massive cash deal
The intrigue:
- Other publicly traded companies in Canada have also been making potentially massive lithium discoveries, with Li-FT Power (TSXV: LIFT) notably announcing their first ever mineral resource estimate from their Yellowknife Lithium Project in the Northwest Territories, Canada
