Commodities, Finance, Lithium, News

Is Pilbara Minerals eyeing Patriot Battery Metals?

Patriot Battery Metals

Recent reports have indicated Pilbara Minerals is considering an M&A play for Patriot Battery Metals – claims shut down by the latter company.

The Australian Financial Review reported that RBC Capital Markets had been enlisted by Pilbara Minerals for the tilt, but Patriot Battery Metals came out with a statement denying any such M&A activity.

“Whilst Patriot has received strong inbound interest in relation to Corvette from a range of Tier 1 global mining and chemicals companies, the company can confirm that it has not received any takeover or corporate proposals to date,” Patriot said.

Patriot Battery Metals is developing its Corvette lithium project in the James Bay region of Canada, which has drawn plenty of attention in recent months due its promising exploration results and potential to support a large-scale lithium mine.

Patriot is also chaired by former Pilbara Minerals boss Ken Brinsden, which may or may not support deal synergies between the two companies.

Pilbara Minerals had reportedly been taken through the data room at Patriot, with potential equity investments and offtake agreements under discussion. But there was no guarantee that this would lead to a deal.

Patriot aims to release its maiden mineral resource statement for the Corvette project in late-July.

The company has also come under fire for allegedly distorting its Corvette resources. Night Market Research recently released a short report suggesting the Corvette initial resource estimate could be 40 per cent lower than what the company’s expects it to be.

Night Market also said there is trouble in Patriot’s leadership, with “a history of shareholder value destruction” from chief executive officer Blair Way.

Patriot refuted these claims, suggesting Night Market’s views are “factually inaccurate and misleading”.

“Patriot has sought legal advice on the short report and refutes the key conclusions made by Night Market Research,” Patriot said. “The report has been published without consultation of the company or the opportunity for fact checking.

“Night Market Research has indicated that it holds a short interest position in Patriot; hence it will realise gains from a decline in Patriot’s share price.”

Subscribe to Australian Resources & Investment and receive the latest news on commodity prices, resource developments, executive movements and more.

Previous ArticleNext Article
Send this to a friend