C$69 MILLION INVESTMENT, OFFTAKE AND STRATEGIC PARTNERSHIP WITH VOLKSWAGEN AND POWERCO TO PROPEL PATRIOT BATTERY METALS TOWARDS PRODUCTION
Summary
This is a pivotal milestone for Patriot as we bring in a long-term strategic partner who is already a major participant in the European and North American battery supply chain as the first customer of the globally significant Shaakichiuwaanaan Project. We are very pleased to have found such a partner in Patriot and to support the team in becoming one of the global lithium leaders and key supplier of lithium raw materials to the emerging North American and European battery materials supply chains.In the Offtake, to be entered into with PowerCo upon closing of the Strategic Investment, PowerCo will be entitled to an annual supply of 100,000 tonnes of spodumene concentrate with a target specification of 5.5% Li O for a term of 10 years, with the option to extend for another five years upon mutual agreement of the parties. The Company has also agreed to use commercially reasonable efforts to assist Volkswagen to acquire additional Common Shares at then-current market prices in connection with ordinary course dilution. Volkswagen has also agreed not to transfer the Common Shares acquired in the Strategic Investment for a period of two years, except in certain customary circumstances including takeovers, mergers or plans of arrangement.Volkswagen and PowerCo will be represented on an advisory technical committee to be formed by Patriot to support the planning and development of the Shaakichiuwaanaan Project.The Investor Rights Agreement contemplates that following release of the feasibility study for the Shaakichiuwaanaan Project, Volkswagen will have the opportunity to act as a cornerstone investor for Project FID funding in return for additional offtake, in each case on terms to be mutually agreed by the parties. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.