St George Mining Limited (ASX: SGQ) has welcomed an A$2 million strategic investment by Hongkong Xinwei Electronic Co., Limited (Xinwei), a wholly- owned subsidiary of Sunwoda Electronic Co., Ltd.
St George also confirmed the signing of a non- binding Memorandum of Understanding (MoU), which will consider partnering on a range of lithium-related business opportunities.
The MoU complements similar agreements St George has struck with global battery giant SVOLT Energy Technology Co., Ltd and leading battery investor Shanghai Jayson New Energy Materials Co., Ltd over the past month, underscoring market interest in Mt Alexander.
“We are delighted to welcome the Sunwoda Group – a global company at the forefront of the lithium- ion battery industry – as a new and significant shareholder in St George,” Executive Chairman, John Prineas, said.
“This strategic investment recognises the exciting lithium opportunity at Mt Alexander and further highlights St George’s strong success in developing key industry relationships with some of the largest and most important global players in lithium-ion batteries.
“Our strategic relationship with Sunwoda will strengthen our ability to both advance Mt Alexander and to potentially generate and partner on additional lithium projects in Western Australia, which is the world’s best hard-rock lithium address.
“Lithium is a critical element required to underwrite the multi-decade energy transition that is underway, which we believe assures strong long-term demand for this commodity. The key downstream relationships forged by St George will boost our Company’s capacity to continue our growth ambitions in the lithium sector.”
Sunwoda – a world leader in lithium-ion batteries
Sunwoda is a high-tech enterprise based in Shenzhen, China and serving the world as a key supplier in the lithium-ion battery industry.
Based on installed capacity of power batteries in 2022, Sunwoda ranks 5th in China (January to November 2022) and 9th in the world (January to October 2022).
Sunwoda is globally recognised for its innovative design and production of lithium-ion battery cells and modules for a range of applications including electric vehicles, energy storage for home and industrial use, personal digital devices (such as mobile phones, tablets, laptops and smart watches) as well as electric tools and other mobile power products.
In addition to its R&D and manufacturing operations, Sunwoda has investments across the entire supply chain for lithium-ion batteries extending from upstream mining to downstream electric vehicles and energy storage stations.
Sunwoda was established in 1997 and remains a fast-growing business that is committed to providing environment-friendly and efficient new energy integration solutions.
Strategic relationship:
The MOU signed by St George and Xinwei establishes a framework for the parties to consider and negotiate on partnering on lithium-business opportunities, including St George’s flagship Mt Alexander Project in Western Australia’s northern Goldfields.
Key matters to be considered for the strategic relationship are:
1. the establishment of a long-term strategic partnership for the potential supply by St George of lithium materials to Sunwoda including a first right of refusal for Sunwoda to no more than 15% of any potential production from Mt Alexander; and
2. collaboration on the potential acquisition and development of lithium projects in Australia and in other countries, except China.
The MoU has an initial term of two years. Any specific arrangement or transaction agreed by the parties will be subject to further documentation and execution of definitive formal agreements. Until a formal agreement is signed, the MoU is non-binding and non-exclusive.
The MoU applies only to project tenements owned 100% by St George.
Mt Alexander Project
The Mt Alexander Project is located 120km south south-west of the Agnew-Wiluna Belt, which hosts numerous world-class nickel deposits and a fast-emerging hard-rock lithium province. The Project comprises eight licences – E29/638, E29/548, E29/962, E29/954, E29/972, E29/1041, P29/2680 (in application) and E29/1143 – which are a contiguous package.
For further information please visit: https://stgm.com.au/
