St George Mining Limited (ASX: SGQ) has announced a A$3M strategic investment by Amperex Technology Limited for lithium exploration in Western Australia. ATL has agreed to invest A$3M in Lithium Star Pty Ltd, one of St George’s subsidiary companies, which has 100% ownership of seven prospective hard rock lithium projects in Western Australia.
John Prineas, St George Mining’s executive chairman, said: “We are delighted to welcome ATL – a world leader in lithium-ion batteries – as a partner for our lithium exploration in Western Australia.”
Furthermore, ATL will acquire a 10% direct equity stake in Lithium Star with St George holding the remaining 90%; the company can increase its stake in Lithium Star with further investment on terms to be agreed.
New funds will be used to accelerate exploration at Lithium Star’s highly prospective lithium projects in Western Australia with field work commencing this month at the following priority projects:
- Split Rocks Project: located ~25km north-west of the Earl Grey lithium deposit, which has a resource of 189Mt @1.50% Li2O2, owned in joint venture by Wesfarmers (ASX: WES) and SQM (NYSE: SQM)
- Buningonia and Buningonia North Projects: located in the same lithium province as Global Lithium’s (ASX: GL1) Manna Project (32.7Mt @1.0% Li2O) and the operating Bald Hill Mine (26Mt @ 1% Li2O)
- Myuna Rocks Project: located along the lithium belt that also hosts Allkem’s (ASX: AKE) operating Mt Cattlin Mine (12.1Mt @1.3% Li2O)
In addition to the investment by ATL in Lithium Star, ATL and St George are continuing discussions to consider partnering on other lithium business opportunities.
“This strategic investment recognizes the exciting potential of the seven prospective lithium projects secured by our subsidiary, Lithium Star. “It also recognises the technical expertise and commitment of the St George team which has considerable experience in exploration for lithium, nickel, and other battery metals as well as the development and operation of open-pit and underground mines in Western Australia. All the Lithium Star projects are located in Western Australia – the world’s best hard-rock lithium address. Five of the new projects are in the southern portion of the Yilgarn Craton, an area gaining a global reputation as a ‘super province’ for lithium and already hosting three spodumene-producing mines and five others in development.” Added John.
To read more about this release, please visit www.stgm.com.au
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