Lithium miner Patriot Battery Metals has secured a C$109m ($82.49m) investment from Albemarle through a placement subscription agreement.

As part of the agreement, Albemarle will subscribe for a total of 7.1 million common shares in Patriot Battery Metals at C$15.29 apiece.

The issue price represents a premium of 7% to the closing price of the Patriot Battery Metals common shares on the TSX Venture Exchange on 31 July 2023.

Subject to TSXV approval and other customary closing conditions, the investment is scheduled for closure on or before 4 August 2023.

Upon closing of the investment, Albemarle will own 4.9% of issued and outstanding common shares in Patriot Battery Metals on a fully diluted in-the-money basis.

Patriot Battery Metals will use the proceeds from the strategic investment to advance the development of its Corvette Lithium Project in the Eeyou Istchee James Bay region of Quebec, Canada, and for general corporate purposes.

Patriot president and CEO Blair Way said: “I believe both Patriot and Albemarle can be a big part of building out the required front-end to the lithium chemicals supply chain in North America and Europe over the coming years. The additional funding will allow us to more aggressively advance the Corvette property through drilling, permitting, study work and more.” 

At the closing of the investment, Patriot will sign a 12-month investor rights agreement with Albemarle whereby the latter with have the right to receive notices pertaining to participation in future equity capital raises to maintain its ownership level. This will be subject to certain conditions.

Furthermore, the two companies will sign a non-binding memorandum of understanding (MoU) to jointly assess the viability of a downstream lithium hydroxide plant integrated with the Corvette property.

Patriot said there is no certainty that the MoU will result in the completion of a study or the formation of a partnership with Albemarle.