St George Mining Limited (ASX: SGQ) has signed a non-binding memorandum of understanding (MoU) with Shanghai Jayson New Energy Materials Co., Ltd (Jayson) to establish a strategic relationship to consider a range of lithium-related business opportunities.
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. Two of the most prominent business leaders in the clean energy sector are linked to Jayson: Mr Feng Liang is the major shareholder and chairman of both Jayson and PUTALAI, the global leader in the field of lithium-ion battery anode materials, while Mr Zeng Yuqun is the major shareholder and chairman of CATL, the world’s leading manufacturer of lithium-ion batteries, and a co-investor with Jayson in mineral projects.
Under the strategic relationship, St George and Jayson will consider partnering on lithium-related business opportunities in Western Australia including:
- investment and offtake opportunities at St George’s Mt Alexander lithium project;
- funding support for St George to enable business expansion and development;
- the acquisition and development of new lithium exploration projects; and
- the development of downstream lithium assets in Western Australia.
Jayson’s market-leading credentials in new energy materials make it an attractive strategic partner for St George as we continue to rapidly grow our opportunities in lithium and other battery metals.
As disclosed to the ASX on 29 November 2022, Jayson participated in St George’s $7.2 million share placement with an investment of $2 million.
Meanwhile, St George continues drilling and other exploration activities at Mt Alexander, with assays pending.
“We are excited about this important strategic relationship with Jayson, a global leader in the new energy sector,” St George executive chairman John Prineas said.
“St George has consolidated a dominant landholding at the new Mt Ida lithium province with control of more than 15km of a prospective pegmatite corridor parallel to the Copperfield Granite.
“High-grade lithium has already been confirmed by laboratory assays in pegmatite outcrops across an area 1.7km north-south and more than 3km east-west.
“Drilling as well as further field sampling and mapping at our broader tenure are underway, with excellent potential to significantly expand the footprint of lithium mineralisation.
“The early stage success of our lithium strategy at Mt Alexander has attracted significant market interest and we are delighted that Jayson has recognised this fast-growing opportunity.
“Our strategic relationship with Jayson will strengthen our capacity to advance Mt Alexander and unlock the full potential of our large landholding in this new lithium province in Western Australia, the world’s best hard-rock lithium address.
“Our MoU also extends to new project generation in Western Australia as well as downstream processing opportunities, providing our respective companies with a diverse range of options to continue building strong businesses in the clean energy sector.”
