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 as well as the acquisition of other lithium projects and lithium business opportunities.
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.
St George and SVOLT representatives met in Perth earlier this month to finalise the MoU discussions.
The MoU establishes a framework for St George and SVOLT to negotiate and consider potentially entering into a range of commercial transactions for investment and offtake opportunities relating to lithium projects in Australia including:
- SVOLT to invest up to $5 million in St George by way of a placement of shares of St George to SVOLT, subject to agreement on pricing and completion of due diligence by SVOLT;
- offtake arrangements whereby SVOLT may secure up to 25% of potential spodumene concentrate from the Mt Alexander lithium project;
- the provision of funding support to St George for the development of lithium projects; and
- a potential joint venture by St George and SVOLT to acquire and develop new lithium projects.
The signing of the MoU with SVOLT comes a little over a week since St George signed a similar arrangement with Shanghai Jayson New Energy Materials Co., Ltd, a globally significant supplier to the clean energy sector and the world’s leading producer of cathode precursor materials for lithium-ion batteries.
“We are excited to announce a strategic relationship with SVOLT, one of the giants in the global EV battery market,” 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 programs 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.”
