Patriot Battery Metals (TSXV: PMET; ASX: PMT) has delivered the long-awaited maiden resource estimate for the CV5 pegmatite at the Corvette lithium project in James Bay, Que., saying that results confirm the asset as the largest lithium pegmatite mineral resource in the Americas and the eight largest globally. The initial resource estimate indicates the deposit holds 109.2 million inferred tonnes at 1.42% lithium oxide and 160 parts per million tantalum, for 1.6 million tonnes of contained lithium oxide, or 3.8 million tonnes of lithium carbonate equivalent, using a 0.4% lithium cut-off grade. Using a 1.4% cut-off, the CV5 resource is 46.3 million tonnes at 2.03% lithium oxide or 3.8 million tonnes of contained lithium carbonate equivalent. The figure, though below some analysts estimates, is strong enough to disprove criticism levelled by short seller firm Night Market Research. Shares cratered despite the positive announcement, dropping over 6% in Australia, about 5.5% in New York and 5.9% in Toronto on Monday. “We could not be happier with the result of this maiden mineral resource estimate at CV5, which will be the first of multiple resource estimates for the Corvette Property over the coming years.” The company’s president and CEO, Blair Way, said in the statement. Albemarle (NYSE: ALB), the world’s largest lithium producer, decided to seize the opportunity, offering on Tuesday $109 million to Patriot for a 5% stake in the company. Albemarle will subscribe around 7.1 million Patriot shares at an issue price of $15.29 per common share under a subscription agreement. The issue price represents a 7% premium to the stock’s July 31 closing price on the TSX Venture Exchange. He noted the publication of the first resource for CV5 was a “key milestone” for the company, which will underpin future economic and development studies as Patriot looks to aggressively advance the asset on to production. The resource and geological modelling has outlined significant potential for growth at CV5, which remains open at both ends along strike, and to depth along a significant portion of its length, the company said. Patriot shares were trading 6.4% lower at $14.41 this afternoon in a 52-week range of $3.05 and $17.74, giving the company a market cap of $1.8 billion. Aussie majors circling Rumours of Australian players eyeing Patriot as a potential acquisition target have been on Australian media on and off this year. In February, it was said that Mineral Resources (ASX: MIN), Pilbara Minerals (ASX: PLS) and Wesfarmers (ASX: WES) were all interested in buying the Canadian miner or, at least, a stake in it. Australian lithium miners, such as Pilbara, Orocobre and Galaxy Resources, are all looking to expand their global footprint and diversify their supply sources amid rising demand for battery metals. Analysts say they see Patriot as an attractive opportunity to gain access to the North American market and secure long-term supply contracts with leading battery manufacturers. Quebec has become a hard rock lithium hotspot as companies vie to supply the surging electric vehicle market. The federal government approved the James Bay open-pit project by Galaxy Resources, a part of Allkem (TSX: AKE; ASX: AKE), in January. Sayona Mining (ASX: SYA) expected the first spodumene shipment from its North American Lithium operation to take place in July.
