Patriot Battery Metals Inc (ASX: PMT) shares have been gaining a lot of attention from investors recently for a number of reasons.
This has been driven by the release of drilling results from the lithium explorer's Corvette Property in Canada, a short seller attack from Night Market Research, and speculation that Pilbara Minerals Ltd (ASX: PLS) is interested in the company's assets.
Is Pilbara Minerals interested in Patriot Battery Metals?
Earlier this month, the AFR reported that sources were claiming that Macquarie Group Ltd (ASX: MQG) was taking Pilbara Minerals through a data room. Discussions were understood to have been in relation to potential offtake agreements, joint ventures, and equity investments in Patriot Battery Metals.
Patriot responded to the speculation last week and confirmed that it has received "strong inbound interest." And while it stopped short of naming Pilbara Minerals, its description of the interested parties is a good match for the Western Australian lithium giant. It advises:
Whilst Patriot has received strong inbound interest in relation to Corvette from a range of tier 1 global mining and chemicals companies, the Company can confirm that it has not received any takeover or corporate proposals to date.
Patriot has appointed a range of advisers and key personnel to support the continued development and financing of Corvette, as an independent lithium company. Consequently, management's focus is on advancing a maiden resource, accelerating exploration drilling, progressing permitting and advancing environmental and study work, whilst considering its funding options in parallel.
Why would it be interested?
It is worth noting that former Pilbara Minerals CEO, Ken Brinsden, is the current chair of Patriot Metals. While it is unknown if he remains in touch with the company, it isn't hard to imagine that he could be.
And given how highly Brinsden thinks about the Corvette project and his previous successes in the Pilbara, it would arguably be remiss for Pilbara Minerals to not look at linking up if it can create value for shareholders.
In respect to his thoughts on the project, Brinsden told the AFR last week:
I've got a lot of experience in the industry, and I'm looking at this project and thinking it's really one of the best ones globally.
To come at it from my perspective, somebody who's experienced in the industry and created significant lithium raw materials project development success over the years, I have deliberately chosen to get involved.
It certainly will be worth watching Patriot Battery Metals and Pilbara Minerals shares closely in the coming months. If a deal is made, it could be good news for both sets of shareholders. Though, that's if short sellers aren't onto something with their report.