09:22 AM EDT, 05/21/2024 (MT Newswires) -- Patriot Battery Metals Inc. ( PMETF ) , which jumped 13% last Friday, before the holiday weekend, announced Tuesday that it has received firm commitments to raise approximately C$75 million (before costs) via a fully subscribed charity flow-through offer of approximately 5.16 million common shares of the company at an issue price of C$14.54 per share to institutional, professional and sophisticated investors.

A statement noted the issue price represents a 51% premium to the last closing price of Patriot common shares on the TSX as of May 17, 2024.

Patriot Managing Director, Ken Brinsde, in the statement said: "With a strengthened balance sheet, Patriot is now positioned to continue its exploration and study work at Corvette, aimed at further growing the Corvette mineral resource and testing a number of high priority targets within the company's broader landholding, and drive the business through to production."

The company said it intends to use the gross proceeds from the sale of the Flow-Through Shares to incur exploration expenses. It noted the closing of the Flow-Through Offering is subject to certain conditions including, but not limited to, approval of the TSX and receipt of all required regulatory and other approvals. Shareholder approval is not required to complete the Flow-Through Offering.

On completion of the Flow-Through Offering, 4.61 million of the Flow-Through Shares will be converted to approximately 46.1 million Chess Depositary Interests on the basis of 10 CDIs for each share. Pursuant to a block trade agreement among PearTree and the Joint Lead Managers, the Joint Lead Managers will facilitate the secondary sale of the CDIs to select institutional investors by way of a block trade at A$0.85 per CDI.

In addition, pursuant to the Block Trade Agreement the Canadian agents will facilitate the secondary sale of the remaining Flow-Through Shares that are not converted to CDIs to select institutional investors by way of a block trade at C$7.65 per Flow-Through Share.

The allotment of the Flow-Through Shares will fall within the Company's 15% placement capacity under ASX Listing Rule 7.1.