St George Mining (ASX: SGQ) has secured a strategic placement from Shanghai Jayson New Energy Materials, a global supplier to the clean energy sector.
Jayson and St George have entered into a subscription agreement whereby Jayson, through its controlled subsidiary Hong Kong Jayson Holding Co.) will acquire just over 78.947 million fully paid ordinary shares in St George at an issue price $0.038 per share to raise $3 million.
St George has also received commitments from sophisticated investors for the placement of an additional 52.632 million fully paid ordinary shares also at $0.038 per share to raise $2 million.
Proceeds from these placements will be applied towards St George’s flagship Mt Alexander Lithium Project, the company’s other prospective lithium projects in Western Australia, and for working capital.
Jayson is focused on contributing to the global trend for clean energy by manufacturing battery materials and developing mineral assets that can deliver large‐scale decarbonisation strategies.
The company has established itself as the world’s leading producer of cathode precursor materials for lithium‐ion batteries with operations in four countries that include multiple production bases, R&D centres, and trade centres.
In addition to precursor manufacturing operations, Jayson has substantial mining, smelting and processing units for copper, cobalt and nickel. It has also developed technology for recycling lithium‐ ion batteries.
The majority owner and Chairman of Jayson is Feng Liang, a senior investor in the clean energy sector.
Write to Adam Orlando at Mining.com.au
Images: St George Mining