Patriot Announces Closing of C$69 Million Strategic Investment, Offtake and Strategic Partnership with Volkswagen and Powerco
PATRIOT ANNOUNCES CLOSING OF C$69 MILLION STRATEGIC INVESTMENT,
OFFTAKE AND STRATEGIC PARTNERSHIP WITH VOLKSWAGEN AND
POWERCO
January 21, 2025 – Vancouver, BC, Canada January 22, 2025 – Sydney, Australia
Vancouver, British Columbia – January 21, 2025 – 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 M emorandum 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
1 Based on a USDCAD exchange rate of 1.4310 as at January 20, 2025.
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.
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.
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
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.
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 requi red and timeline to complete the feasibility study for the
Shaakichiuwaanaan Project, the ability of the Company to achi eve 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.
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.
For more information please contact:
Investor Relations:
Olivier Caza-Lapointe
Head, Investor Relations
T: +1 (514) 913-5264