PMT/PMET announced it has entered into a Strategic Partnership with Volkswagen, which will see the German based global car manufacturer commit to a C$69m placement and a ten-year, 100ktpa spodumene offtake agreement. Post the completion of the placement, which will be completed at a 67% premium to the TSX closing price and a 55% premium to the ASX closing price, Volkswagen will have a 9.9% equity interest in PMT. Importantly, the proceeds from the placement will more than double PMT’s cash balance to ~C$120m, leaving the company well-funded to complete planned exploration and study work in 2025. Securing a key strategic partner the calibre of Volkswagen is a key positive for PMT, and in our view underpins the world class characteristics of Shaakichiuwaanaan, while the C$69m placement should remove any funding concerns that we believe had been supressing PMT’s share price in recent weeks. We reiterate our BUY rating and A$1.00 and C$9.00 ASX and TSX price targets.
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