VANCOUVER, BC, Dec. 18, 2024 /CNW/ - December 18, 2024 – Sydney, Australia

Europe's largest car manufacturer positions Patriot Battery Metals to become a key future supplier of lithium raw materials for the North American and European battery supply chains.

HIGHLIGHTS

Volkswagen Group, through its holding and financing company, Volkswagen Finance Luxemburg S.A. ("Volkswagen"), will invest ~ C$69 million1 to acquire 9.9% of Patriot's issued and outstanding common shares (the "Common Shares").Subscription price of C$4.42 per share represents a 65% and 35% premium to the 30-day and 90-day volume weighted average price.Binding offtake commitment to be entered into with Volkswagen's 100%-owned vertically integrated battery manufacturer, PowerCo SE ("PowerCo"), to supply 100,000 tonnes of spodumene concentrate (SC5.5 target) per year over a 10-year term, representing ~25% of the estimated Stage 1 or ~12.5% of combined Stage 1 and Stage 2 production from the Shaakichiuwaanaan Lithium Project in Québec, Canada (the "Shaakichiuwaanaan Project").2Offtake expected to supply PowerCo's cell production activities in Europe and North America, including its battery cell factory in St. Thomas, Canada, with production capacity of up to 90 GWh.Memorandum of Understanding ("MoU") signed to establish an ongoing strategic relationship between PowerCo and Patriot to jointly explore and collaborate on shared strategic objectives, including opportunities for the future development of the Shaakichiuwaanaan Project centred around establishing a cost-competitive, sustainable and ESG-compliant battery supply chain that will attract government support and incentives and the potential development of a chemical conversion facility.Following completion of the feasibility study for the Shaakichiuwaanaan Project, Volkswagen may contribute additional financing to support the Shaakichiuwaanaan Project in return for additional offtake on terms to be mutually agreed.