St George Mining (ASX: SGQ) has announced that Amperex Technology Limited (ATL), a world-leader in lithium-ion batteries, will take a strategic shareholding in St George and gain exposure to the world-class niobium-rare earths Araxá project following restructure of the Lithium Star joint venture.
Lithium Star Pty Ltd is currently owned 10% by ATL and 90% by St George. The joint venture was established by the parties in 2023 with a mandate to carry out lithium exploration in Western Australia that focused on several greenfields projects located near spodumene-producing mines. Western Australia is the world’s premier hard-rock lithium address and home to several globally significant spodumene concentrate producers.
Under the restructure, St George will acquire ATL’s 10% shareholding in Lithium Star, with the consideration to be satisfied by the issue to ATL of 12.5 million St George ordinary shares at A$0.16 per share (A$2 million in aggregate).
ATL, the world’s leading producer of lithium-ion batteries, will gain exposure to St George’s world-class niobium-rare earths Araxá project while securing offtake rights for any future lithium production by Lithium Star.
“ATL has been a long-standing, supportive partner of St George’s quest to drive shareholder value from discovering and commercialising critical minerals opportunities. We are therefore delighted that ATL has agreed to switch its stake in the Lithium Star JV into a strategic shareholding in St George,” executive chairman John Prineas said.
“The greenfields projects underpinning Lithium Star remain a valuable and highly prospective opportunity for St George, with early stage exploration identifying several prospects for follow-up work.
“Priority targets have been identified at the Buningonia and Lindville projects, in particular. We will continue to methodically progress those lithium opportunities that we believe have potential for a significant discovery, without taking our eye of our immediate priority – driving the Araxá Project towards development for the benefit of all shareholders.
“ATL will retain rights for up to 25% of any lithium product from the successful development of Lithium Star projects, providing a potential new lithium source for its world-leading lithium-ion battery business.
“Bringing ATL onto the St George share register highlights our strong success in developing key industry relationships with some of the largest and most important global players in critical minerals.”
