St George Mining Limited (ASX: SGQ) has announced a $3 million strategic investment by Amperex Technology Limited (ATL) for lithium exploration in Western Australia.
ATL, the world’s leading producer of lithium-ion batteries and a division of Japanese electronics giant TDK, will invest in Lithium Star Pty Ltd, one of St George’s subsidiary companies, which has 100% ownership of seven prospective hard-rock lithium projects. ATL will acquire a 10% direct equity stake in Lithium Star, with St George holding the remaining 90%. ATL can increase its stake in Lithium Star with further investment.
The new funds will be used to accelerate exploration at Lithium Star’s highly prospective lithium projects, with field work commencing this month at the following priority projects:
- Split Rocks: located ~25km north-west of the Earl Grey lithium deposit, which has a resource of 189Mt @ 1.50% Li2O, owned in joint venture by Wesfarmers (ASX: WES) and SQM (NYSE: SQM)
- Buningonia and Buningonia North: 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: 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, the two parties are continuing discussions to consider partnering on other lithium business opportunities.
Commenting on ATL’s investment, St George executive chairman John Prineas said:
“We are delighted to welcome ATL – a world leader in lithium-ion batteries – as a partner for our lithium exploration in Western Australia.
“This strategic investment recognises 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. Exploration ground in this region is highly sought after with significant M&A activity already underway to secure strategic positions.
“The investment by ATL will strengthen our ability to advance the Lithium Star projects with minimal dilution to existing St George shareholders. We also look forward to potentially partnering with ATL on additional lithium exploration and other lithium business opportunities.
“The deal with ATL 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. The key downstream relationships formed by St George, including with Shanghai Jayson, SVOLT, Sunwoda Electronic and now ATL, underpin our capacity to grow in the lithium sector and validate our strategic decision to build out our portfolio of battery metals projects.”
