Morning Briefing: Patriot Battery Metals Sigss C$69M Subscription and Offtake Agreement with Volkswagen

Good morning and welcome to the Mining Stock Daily Morning Briefing. I’m Trevor Hall.

Its Wednesday, December 18th.  

Gold fell by the wayside yesterday, and had to crawl its way up from the bottom. Ultimately, it finished the dat down 3/10th of a percent closing $2662/oz, which was $15 above its low of the day. Silver traded in a similar pattern, closing the day at 30.92 per ounce, a lost of 4/10ths of a percent. Market attention today is on the Federal Reserve and its interest rate decision, and perhaps most importantly, its economic projects for the new year. 

We’ll get to the news from the miners and explorers here in a moment, but first a quick word about today’s sponsor. 

This episode of Mining Stock Daily is brought to you by…Vizsla Silver.

Vizsla Silver is focused on becoming one of the world’s largest single-asset silver producers through the exploration and development of the 100% owned Panuco-Copala silver-gold district in Sinaloa, Mexico. The company consolidated this historic district in 2019 and has now completed over 375,000 meters of drilling. The company has the world's largest, undeveloped high-grade silver resource. Learn more at ⁠https://vizslasilvercorp.com/⁠

And Here’s what you need to know this morning….. 

Patriot Battery Metals has entered into a subscription agreement with Germany's largest car manufacturer, Volkswagen, providing for the issue and sale to Volkswagen of 15,557,500 Common Shares at an price of C$4.42 per share, for aggregate gross proceeds of approximately C$69 million. The Subscription Price represents a 65% and 35% premium to the 30-day and 90-day volume weighted average trading price of the Common Shares on the Toronto Stock Exchange. As part of the Strategic Investment, Patriot will enter into a binding offtake term sheet with Volkswagen's wholly-owned and vertically integrated battery manufacturer, PowerCo, for Patriot to supply 100,000 tonnes of spodumene concentrate per year over a 10-year term. The Offtake is expected to supply PowerCo's cell production activities in Europe and North America, including its battery cell factory in St. Thomas, Canada. St. Thomas is intended to become PowerCo's largest cell factory with a production capacity of up to 90 GWh, enough to produce over one million electric vehicles a year. (TSX: PMET) (ASX: PMT) (OTCQX: PMETF) News Release

American Eagle Gold published new drill results front he NAK property in British Columbia. Results included hole 33 which is the second most northerly drill hoole assayed by the company to date. That returned a total of 505m of .52% CuEq, with a subinterval of 50m grading 1% CuEq. Other results reported this morning included 642m of .27% CuEq and 496m of .22% CuEq. All parts of the NAK system tested to date remain open. (TSXV: AE) (OTCQB: AMEGF) News Release

NGEx Minerals provided results from its Phase 3 drill program at the 100% owned Lunahuasi project in San Juan, Argentina. Drilling started in mid-October 2024, and six diamond drill rigs are currently working on the project. Today’s results are from the upper portion of the first two holes, which returned 86.6m of 4.39% CuEq in hole 24, which included a sub interval of 4m of 55.26% CuEq. Hole 25 assays returned 51.4m of 3.69% CuEq and included 3.5m of 19.29% CuEq. The company noted the high-grade gold factor in the results and says this demonstrates Lunahuasi has the potential to be an important high-grade gold deposit as well as a significant copper and silver deposit. Both of the holes continue to be in progress at a depth around 1,000m or more. (TSX: NGEX) (OTCQX: NGXXF) News Release

Magna Mining has entered into an asset purchase agreement with NorthX Nickel to acquire a portfolio of base metal assets in the Sudbury Basin. The property portfolio includes both past-producing properties (Parkin, Wisner), as well as several exploration properties mainly in the footwall of the Sudbury Igneous Complex (SIC) contact, and totaling >30,000 Ha. Magna believes these properties have significant exploration potential remaining, including offset dyke environments at Trill and Parkin, contact Ni-Cu mineralization at Windy Lake, and several properties in the footwall environment. Magna is purchasing the portfolio for a total of C$1, and will asuume all closure liabilities for the Broken Hammer project. (TSXV: NICU) (OTCQB: MGMNF) News Release

Dundee Precious Metals published results of its pre-feasibility study for its  Čoka Rakita project in Serbia. The project now sits with an NPV of $735M and an IRR of 41% at a $1,900 gold price. A $2,500 gold prices increases this to an NPV of $1.2B and an IRR of 58%. Its all-in sustaining cost if $644 per ounce average, life of mine. Project Capex sits at $379M. It mineral reserves are estimated to be 1.36 million ounces supporting the project 10-yr mine life. The robust PFS economics and continued exploration success around Čoka Rakita serve as DPM’s basis for proceeding to a feasibility study immediately for an accelerated construction decision, with first concentrate production targeted for 2028. (TSX: DPM) News Release

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