Patriot Battery Metals secured a premium private placement

Marc Challande
May 31, 2022
minute read

Up by more than 1,000% year-over-year, Patriot Battery Metals (PMET.V) showed a significant return on investment to its shareholders. Patriot Battery Metals is an exploration company focused on acquiring and developing mineral projects containing battery, base, and precious metals. The company aggressively advances on its 100%-owned flagship asset named the Corvette Property, located in the James Bay Region, Quebec, with a 20,000-meter two rigs drill program commenced in March 2022.

Company projects overviews

Patriot Battery Metals owns 100% of a large consolidated 214 Km2 tenement package in James Bay Region, Quebec. One of the most exciting company’s projects is the Corvette Property. The property is located within the La Grande Greenstone Belt and is part of the CV lithium trend. This trend is an emerging spodumene pegmatite district discovered by the company in 2017 and spans more than 25 Km across the Corvette property. Situated between the Golden exploration trend and the Maven copper-gold-silver trend, it provided great highlights:

·       1.22% Li2O and 138 ppm Ta2O5 over 152.8 m (CV22-030)

·       2.22% Li2O and 147 ppm Ta2O5 over 70.1 m, including 3.01% Li2O and 160 ppm Ta2O5 over 40.7 m (CV22-017)

·       3.01% Li2O and 160 ppm Ta2O5 over 40.7 m (CV22-017).

Patriot Battery has already drilled approximately 18,249m from its 20,000 drill program, and over 65 drill holes have been completed. A majority of the summer drill holes have their assays pending.

The company owns other properties in the James Bay Region, including the Pontax (lithium and gold minerals, prominent land position in underexplored area of Pontax Greenstone Belt), the Lac du Beryl (lithium and gold, claims within 700 m of historical Arianne Gold Showing – 5.4 g/t Au over 7 m), and the Eastmain properties (lithium, strategically located proximal to the James Bay (Cyr) Deposit held by Galaxy Resources. Outside of Quebec, Patriot Battery owns properties in British Columbia & Northwest territories with the Hidden Lake (Lithium 1.6% Li2O over 9.2 m, the company holds 40% in a joint venture with Far Resources), and the Golden Silica (high purity silica, located proximal to infrastructure & active silica mine) properties.

The company also owns a property in Idaho, USA, named Freeman Creek. The property has some highlights, including:

  • 1.12 g/t Au and 9.0 g/t Ag over 47.6 m starting from the surface, including 4.11 g/t Au and 33 g/t Ag over 12.0 m (drill hole FC20-003)
  • 0.46 g/t Au and 7.6 g/t Ag over 14.1 m starting from the surface, including 2.08 g/t Au and 18 g/t Ag over 2.0 m (drill hole FC20-002)
  • 0.56 g/t Au and 19.3 g/t Ag over 9.0 m (drill hole FC20-001)

Management board overview

Blair Way (CEO, president, director) successfully leads the company. Mr. Way has over 30 years of management experience within the resources and construction industry in Australia, Canada, the United States, and Europe. He was formerly CEO, President, and Director of Edge Materials for over five years. He also has been involved in Ventana Gold and Oceanagold Philippines.

On July 19, the company announced board changes. Patriot Battery first announced the appointment of Mr. Brian Jennings as a Director of the company. He is a chartered accountant and geologist with over 30 years of experience as a senior financial executive and corporate restructuring professional. The company also welcomed Brett Grosvenor to the newly Steering Group Project ( PSG part of the Corvette property). The purpose of PSG is to assist the board of directors in ensuring the company implements a well-structured, practical, and efficient exploration and development approach for lithium pegmatite.

Finally, Patriot Battery integrated Ken Brindsen as non-executive chairman and director. He is the former director and CEO of Pilbara. Mr. Brinsden is a Mining Engineer with approximately 30 years of experience in surface and underground mining operations.

Share Information/Financials

The company has excellent fundamentals added to a strong balance sheet. PMET also announced a $20M private through the issuance of 1.5M shares at $13.27 (109% premium compared to September 14’s stock price of $6.35) to fund its winter drill program, which is expected to commence in late January 2023. If we add this information to the financial statement released for the period ending June 30, the company has more than $28M in cash for no debt. On the share structure, the company has 90M shares outstanding for 32.5M warrants (avg. price: $0.67) and 8.5M options (avg. price: $0.91) for 129M shares fully diluted.The stock offered a significant return on investment. A year ago, the stock price was only worth $0.50 or from the 52-week low of $0.20. The stock is heading toward a new high, as shown by its 52-week high reached on September 16 for a value of $7.10. According to their last private placement (private placement at $13,27, worth a 109% premium compared to September 14’s stock price of $6.35), the stock price could reach double digits in the short-medium term outlook. Many technical indicate the stock is a buy (15 BUYS, 10 NEUTRALS, 1 SELL), with the moving averages on fire. Analysts gave a 1-year price target of $8.50, but this data should increase.

Bottom Line

Many indicators say the company is just at the beginning of its expansion. The lithium demand booming, the Corvette property highlights, added to the recent premium private placement, strongly indicates Patriot Battery Metals (PMET.V)’s ascension isn’t finished yet.