St George Mining Limited (ASX: SGQ) has received commitments to raise A$7.2 million from investors, including significant input from a large Chinese company.
The commitments include an A$2,040,000 cornerstone investment by global battery minerals company, Shanghai Jayson New Energy Materials Co., Ltd.
Jayson is a globally significant supplier to the clean energy sector and the world’s leading producer of cathode precursor materials for lithium-ion batteries. It has established a vertical supply chain for energy materials that extends from upstream mining and processing operations to downstream precursor manufacturing and battery recycling.
Jayson has investments in lithium, nickel, copper and cobalt projects in several countries and more than 2,900 employees worldwide.
The majority owner and Chairman of Jayson is Mr Feng Liang, a pioneer investor in the clean energy sector who is also the major shareholder and Chairman of PUTALAI – the global leader in the field of lithium-ion battery anode materials.
The Placement was heavily demanded, reflecting the strong investor interest in the company’s Mt Alexander Project where St George has discovered high-grade pegmatite-hosted lithium mineralisation within a 15km-long pegmatite corridor.
New funds will be applied towards lithium exploration and development activities at Mt Alexander, exploration at the company’s other projects and for working capital.
Eligible investors in the Placement will be provided with Junior Minerals Exploration Incentive (JMEI) tax credits as a result of St George’s successful application to participate in the Federal Government’s JMEI programme. Eligible investors will receive a JMEI tax credit statement from the company following completion of the FY 23 tax year.
Euroz Hartleys acted as sole lead manager for the Placement.
“We are very pleased to receive such strong support for the Placement and thank investors for recognising the tremendous growth opportunities in St George’s projects – particularly the rapidly developing lithium potential at Mt Alexander,” Executive Chairman, John Prineas, said.
“We welcome Jayson – a global company that shares our focus on the exploration and development of clean energy metals – as a key shareholder in St George. Jayson has established an enviable supply chain in the clean energy sector that secures the supply of energy metals for its battery manufacturing operations.
“The cornerstone investment by Jayson is an endorsement of our team and the outlook for our projects.
“The new funds secured will enable St George to aggressively continue drilling and exploration activities at its Mt Alexander Project. We are currently completing our maiden lithium drill programme at Mt Alexander to test several pegmatite outcrops where high-grade lithium mineralization has been confirmed by assays of rock chip samples.
“In 2023, the drill programme will escalate with more than 20,000m of drilling planned in the first half of the calendar year to fully scope the extent and scale of lithium mineralization along the 15km-long prospective pegmatite corridor controlled by St George.
“We are committed to continuing to create substantial shareholder value and thank existing and new shareholders for recognising the strong upside that we have at St George.”
The Mt Alexander Project is located 120km south south-west of the Agnew-Wiluna Belt in Western Australia, which hosts numerous world-class nickel deposits. 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.
This tenement package provides St George with more than 15km coverage of a highly prospective pegmatite corridor in the newly recognised Mt Ida Lithium Province. An additional two exploration licences – E29/1093 and E29/1126 – are located to the south-west of the core tenement package.
For further information please visit: https://stgm.com.au/
