- Write by:
-
Tuesday, July 11, 2023 - 00:20:08
-
182 Visit
-
Print
Mining News Pro - Canadian lithium explorer Patriot Battery Metals refuted on Monday claims published in a short-seller report, stating the assertions made by Night Market Research were “factually inaccurate and misleading.”
The short-seller said on July 6 it attributed Patriot’s stock price rally to promotion efforts with unnamed marketing outlets that other “Tier-1” developers would avoid.
“Patriot Battery Metals is a rare mining ‘unicorn’ – a lithium explorer ascending to a $2-billion valuation despite having acquired its core asset for $8-million only 16 months ago and lacking an established maiden resource,” the report said.
The North American firm also suggested that Patriot had used “curiously timed buyout rumours” to inflate its share price, and that lithium reserves at its flagship Corvette lithium project in Quebec, Canada, were 40% lower than what the explorer has said.
Shares in Patriot were halted on Monday in Australia after the Vancouver-based lithium junior was asked to respond to the bruising report, in line with Australian Securities and Investments Commission regulations.
“I wouldn’t normally be so direct and that’s not really my style,” chairmen Ken Brinsden told The Australian Financial Review. “I just think some of what they have said is pretty frustrating, a bit outrageous and inconsistent with the facts we have presented to our investors.”
Brinsden, who left the top job at Pilbara Minerals in July 2022 and emerged as chairman of Patriot Battery Metals a month later, added the company had enlisted the help of lawyers to deal with Night Market Research’s claims.
“[Our Corvette lithium project in Quebec] is a really significant discovery in which I have deliberately chosen to get involved,” he told AFR. The executive added he wouldn’t have gotten involved if the lithium project didn’t have all the key elements including opportunity and development potential.
Short-sellers make money as share prices fall. Night Market Research has targeted several companies in the past four years, including New York-listed medical device manufacturer Zynex and Toronto-listed Cielo Waste Solutions.
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, Pilbara Minerals and Wesfarmers were all interested in buying the Canadian minor or, at least, a stake in it.
Australian lithium miners, such as Pilbara Minerals, 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 Battery Metals 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.
Azimut Exploration (TSXV: AZM) has its own James Bay project and Sayona Mining (ASX: SYA) expects the first spodumene shipment from its North American Lithium operation to take place this month.
Short Link:
https://www.miningnews.ir/En/News/623111
Barrick Gold Corp.’s chief executive officer says the gold miner will continue to host virtual-only annual general ...
Jiang Weiping, the founder of major Chinese lithium producer Tianqi Lithium Corp., resigned as chairman after the ...
Ucore Rate Metals (TSXV: UCU) has deemed a 26-tonne sample of mixed rare earth carbonate (MREC) from the Wicheeda mine ...
Australian Strategic Materials ASM.AX said on Friday it has received a non-binding letter of interest for a debt funding ...
China’s Tianqi Lithium said on Thursday it has formally requested that a proposed joint venture between lithium company ...
India is in talks with several countries seeking partnerships for technical help on lithium processing, said four ...
Chile’s state copper company Codelco defended its proposed lithium production tie-up with SQM in response to criticism ...
Nigeria has revoked 924 dormant mining titles immediately and invites investors to freely apply for the affected ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
No comments have been posted yet ...