Lithium miner Patriot Battery Metals said on Tuesday Albemarle would invest C$109 million ($82.6 million) in the company for a 5% stake.
Albemarle will subscribe around 7.1 million Patriot shares at an issue price of C$15.29 per common share under a subscription agreement. The issue price represents a 7% premium to the stock’s July 31 closing price on the TSX Venture Exchange.
Patriot will use the proceeds to accelerate development activities at the Corvette lithium project in Quebec, Canada and for general corporate purposes.
Upon closing of the investment, Patriot will enter into a non-binding pact with Albemarle to study the viability of a downstream lithium hydroxide plant integrated with Corvette.
The battery metals miner expects the investment to close by Aug. 4.
($1 = 1.3189 Canadian dollars)
(By Echha Jain; Editing by Subhranshu Sahu)