Canada-based Patriot Battery Metals (ASX:PMT, TSX:PMET) is raising C$75 million ($82.4 million) via a fully subscribed charity flow-through offer to conduct exploration at the Corvette Lithium Project.
The company will issue 5.16 million shares at C$14.54 per share to investors, representing a 51% premium to the last closing price of Patriot shares on 17 May 2024.
The company received firm commitments for the placement, saying it witnessed strong demand from existing and new institutional, professional and sophisticated investors, as well as existing substantial shareholders.
Patriot decided to undertake the capital raising now due to recent measures announced in the 2024 Canadian federal budget, which take effect on 25 June 2024, and are expected to reduce future flow-through premiums to explorers.
Canada-listed companies can issue flow-through shares that allow investors to claim tax credits for the amount they invest.
Managing Director Ken Brinsden says with a strengthened balance sheet, the company is positioned to continue exploration and study work at Corvette, aimed at further growing the lithium resource, as well as test several high-priority targets.
Patriot is targeting the release of an updated resource for the CV5 pegmatite target in late Q3 2024.
The flow-through offering will be facilitated by PearTree Securities. Euroz Hartleys and Argonaut Securities will act on behalf of a syndicate that includes Bell Potter Securities and Foster Stockbroking as Australian co-managers to the transaction.
Raymond James is the sole Canadian bookrunner, while BMO Capital Markets and National Bank Financial are acting as Canadian co-managers and joint lead managers to the transaction.
The Corvette project lies in the James Bay region of Québec, Canada and covers a 21,715 hectare area.
Write to Aaliyah Rogan at Mining.com.au
Images: Patriot Battery Metals
