St George Mining Limited (ASX: SGQ) has raised $7.2 million from investors through a placement of new shares at 6.8c per share. The commitments include a $2.04 million cornerstone investment by global battery minerals company, Shanghai Jayson New Energy Materials Co Ltd.
St George is now fully funded to accelerate drilling and other exploration activities at the fast-evolving lithium discovery at its flagship Mt Alexander Project, located in a new Western Australian lithium province.
More than 20,000m of drilling is planned in the first half of 2023 to scope the extent and scale of lithium mineralisation at St George’s large landholding, which includes the Jailbreak lithium prospect.
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. The majority owner and chairman of Jayson is 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.
St George will issue 105,941,190 new shares at 6.8c under the placement. Subscribers under the placement will also receive one free-attaching option for every five shares subscribed for and issued under the placement, with the options having an exercise price of 10c and an expiry date of three years from their date of issue.
“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,” St George 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 program at Mt Alexander to test several pegmatite outcrops where high-grade lithium mineralisation has been confirmed by assays of rock chip samples.
“In 2023, the drill program 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 mineralisation 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.”