ASX-listed company St George Mining (ASX:SGQ) reports it has signed a non-binding Memorandum of Understanding (MoU) with battery metals investor Shanghai Jayson New Energy Materials Co. for lithium-related business opportunities.
The company says the MoU with the Singapore-based company will consider potential investment and offtake opportunities at the Mt Alexander Project located 120km south south-west of the Agnew-Wiluna Belt, financial support for St George for expansion, as well as the acquisition and development of new lithium projects including joint ventures (JVs).
It will also consider the potential development of downstream lithium assets in Western Australia.
St George Mining Executive Chairman John Prineas said the company is excited about this important strategic relationship with Jayson, a global leader in the new energy sector.
“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.
“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 to south and more than 3km east to 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 landholdings 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 business in the clean energy sector.”
St George reports the MoU has an initial term of 2 years and any specific arrangement or transaction agreed by the parties will be subject to further documentation and execution of definitive formal agreements.
Until a formal agreement is signed, the MoU is non-binding and non-exclusive.
The Mt Alexander Project is located 120km south-southwest of the Agnew-Wiluna Belt which hosts numerous ‘world-class’ nickel deposits and a ‘fast-emerging’ hard rock lithium province.
The project comprises 8 licences including E29/638, E29/962, E29/972, E29/1041, P29/2680 and E29/1143, which are a contiguous package.
St George says the tenement package provides the company with more than 15km coverage of a prospective pegmatite corridor in the Mt Ida Lithium Province, and an additional 2 exploration licences are located to the southwest of the core tenement package.
Shanghai Jayson New Energy Materials Co. is a producer of cathode precursor materials for lithium-ion batteries with operations in four countries that include multiple production bases, 2 R&D centres and 3 trade centres.
Its range of businesses in the clean energy sector provide the company with an ‘enviable’ vertical supply chain for energy materials that extends from upstream mining to downstream precursor manufacturing and battery recycling.
St George Mining is a mining exploration company focused on its flagship Mt Alexander Project in Western Australia. Other projects held by the company include the Paterson, Broadview and Ajana projects.
Images: St George Mining Ltd
