Patriot Battery Metals Inc. (TSXV:PMET) is understood to have tapped Macquarie Capital, with sources suggesting the investment bank has been sounding out potential buyers of the $741 million Canadian lithium explorer. It comes after DataRoom reported in February that the company, known to have an attractive stable of assets, had attracted interest from Mineral Resources, Pilbara Minerals and Wesfarmers. Rio Tinto also took a look, but Pilbara Minerals was keenest.

Market interest is now being tested. Patriot Battery Metals is chaired by former Pilbara boss Ken Brinsden. The company is listed in both Australia and Canada, and focuses on a range of metals.

Its market value has almost halved since the start of this year, in line with the falling lithium price, down to $742 million from $1.55 billion (CAD 1.45 billion). Pilbara Minerals recently hired Macquarie Capital investment banker John Stanning as its chief development officer. Pilbara chief executive Dale Henderson has not ruled out a move on Patriot Battery Metals.

The $15 billion Pilbara Minerals is currently working on finding a joint venture partner for the construction of a processing facility with Macquarie Capital, but sources say it could acquire Patriot Battery Metals while also carrying out a joint venture deal.