Pilbara Minerals weighs tilt at Patriot Battery Metals, RBC hired
Pilbara Minerals is understood to have hired RBC Capital Markets’ resources bankers to weigh a tilt at dual-listed explorer Patriot Battery Metals, whose Corvette lithium project in Quebec is due to put out an initial mineral resource in July.
Pilbara Minerals boss Dale Henderson.
Sources said Patriot Battery Metals had its long-time adviser Macquarie Capital taking Pilbara through a data room. It’s understood discussions have centred on potential offtake agreements, joint ventures and equity investment.
There was no certainty that talks between the two parties would lead to a deal, whatever form it may take, sources said. Also, Pilbara wasn’t the only party in the data room, with other tyrekickers also considering Patriot’s claims to owning one the world’s highest-grade and largest hard-rock lithium projects under exploration.
It would be interesting to see what Pilbara Minerals makes of Patriot Battery Metals reaction to claims made in a short seller report published past week.
Patriot’s share price climb – still up 121 per cent on the ASX year-to-date even after Friday’s selloff – has been astonishing to fundies when it’s yet to go into production and make any revenue. But last week, Night Market Research claimed lithium reserves were 40 per cent lower than stated, a comprehensive resource update had been delayed seven times, and the stock was subject to periodic buyout rumours.
Patriot had $56.7 million cash at March end and made a $10.1 million loss for the year.
Macquarie Capital’s sell-side analysts have a $2.30 price target for the stock, according to a research note published on July 5 after drilling results at CV13 target. Shares closed at $1.64 apiece on Friday, after tumbling 7.4 per cent in the day’s
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