St George Mining Limited (ASX: SGQ) has signed a non-binding Memorandum of Understanding (MoU) with SVOLT Energy Technology Co., Ltd to consider collaboration on the development of the Mt Alexander Lithium Project in Western Australia as well as the acquisition of other lithium projects and lithium business opportunities.
“We are excited to announce a strategic relationship with SVOLT, one of the giants in the global EV battery market,” St George Mining’s Executive Chairman, John Prineas, said.
“High-grade lithium commences from surface at Mt Alexander as confirmed by assays of the pegmatite outcrop, so far sampled across a broad area that spans 1.7km north-south and more than 3km east-west. With drill programmes in progress and further field sampling underway, there is excellent potential for the footprint of high-grade lithium mineralisation to significantly increase across the more than 15km long pegmatite corridor controlled by St George.
“We are delighted that SVOLT has recognised this tremendous growth opportunity at Mt Alexander – located in the heart of Western Australia’s newest hard rock lithium province. Our strategic relationship with SVOLT will strengthen our capacity to accelerate exploration and development at the Project – particularly through the provision by SVOLT of technical advice for the marketing of lithium products as well as the potential provision of development funding.
“Under the strategic relationship, we will also consider new project generation in Western Australia creating another potential growth engine for our respective companies.
“The signing of the non-binding MoU complements a similar strategic relationship we have established with Shanghai Jayson New Energy Materials Co., Ltd, the world’s leading producer of cathode precursor materials for lithium-ion batteries.
“St George’s ability to attract blue-chip partners like SVOLT and Jayson speaks volumes to the potential of Mt Alexander.”
SVOLT
SVOLT has engaged in battery R&D for more than 10 years and was established as an independent battery manufacturer in 2018 following a spin-off from Great Wall Motor Company, one of the world’s largest vehicle manufacturers.
Today, SVOLT is a fast-growing global company with more than 10 manufacturing bases including plants established or under construction in China and Germany.
In addition to being one of the world’s largest battery manufacturers, SVOLT is recognised in the industry as a leading technology innovator. SVOLT pioneered the cobalt-free battery, which has high- safety and low-cost attributes, and is now the global leader for mass-produced cobalt-free batteries. SVOLT has extensive R&D centres located in China, Germany, Korea and India.
SVOLT has a pro-active strategy to secure supply chains in the lithium battery sector with investments in a number of lithium value chain projects world-wide.
SVOLT MoU
The MOU signed by St George and SVOLT establishes a collaborative working relationship for the parties to consider and negotiate partnering on lithium-business opportunities, including at St George’s flagship Mt Alexander Lithium Project.
The MoU applies only to project tenements owned 100% by St George.
The range of commercial transactions that may be considered by the parties includes:
1) SVOLT to invest up to $5 million in St George by way of a placement of shares from St George to SVOLT, subject to agreement on pricing and completion of due diligence by SVOLT.
2) Offtake arrangements whereby SVOLT may secure up to 25% of potential spodumene concentrate from the Mt Alexander Lithium Project.
3) The provision of funding support to St George for the development of lithium projects.
4) Potential formation of a joint venture by St George and SVOLT to acquire and develop new lithium projects.
St George and SVOLT will form a strategic management committee to consider potential investment opportunities. SVOLT will also have the right to appoint one director to the Board of St George so long as SVOLT holds more than 5% of the fully paid ordinary shares of St George (and subject to any regulatory approvals).
The relationship has potential to significantly support the growth of St George’s business, particularly through:
• SVOLT’s industry leading technical expertise in the processing of lithium and other battery metals for use in battery manufacture
• SVOLT’s extensive knowledge and experience in the marketing of lithium and other battery metals
• SVOLT’s substantial financial capacity via its cash reserves and relationship banks
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.
The MoU is non-exclusive and each party may pursue business opportunities with any other third party.
New lithium province
The province around Mt Ida, in Western Australia’s northern Goldfields, has emerged as a new hard rock lithium province following the significant high-grade lithium discovery by Red Dirt Metals at its Mt Ida Project in September 2021.
St George’s landholding in the province encompasses more than 15km of the pegmatite corridor adjacent to the Copperfield Granite – the interpreted source of the mineralised pegmatites at Mt Ida.
St George has confirmed high-grade lithium in pegmatite outcrop over a widespread area of its Project tenure with drilling underway to scope the full extent of lithium mineralisation.
For further information please visit: https://stgm.com.au/
