St George Mining Ltd (ASX:SGQ) is raising $7.2 million with a $2 million cornerstone commitment coming from global battery minerals investor Shanghai Jayson New Energy Materials Co., Ltd.
The company secured the funding following a strongly supported placement of new shares at $0.068 per share, which illustrated the strong investor interest in SGQ’s Mt Alexander Project in WA’s lithium province where it has discovered high-grade pegmatite-hosted lithium mineralisation within a 15-kilometre-long pegmatite corridor.
St George is now fully funded to accelerate drilling and other exploration activities at the fast-evolving lithium discovery at Mt Alexander and will undertake more than 20,000 metres of drilling in the first half of 2023 to scope the extent and scale of lithium mineralisation through its large landholding.
"Strong support"
“We are very pleased to receive such strong support for the placement and thank investors for recognising the tremendous growth opportunities in St George’s projects – particularly the rapidly developing lithium potential at Mt Alexander,” executive chairman John Prineas said.
“We welcome Jayson – a global company that shares our focus on the exploration and development of clean energy metals – as a key shareholder in St George.
"Jayson has established an enviable supply chain in the clean energy sector that secures the supply of energy metals for its battery manufacturing operations.
“The cornerstone investment by Jayson is an endorsement of our team and the outlook for our projects.”
Cornerstone investor
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.
Its majority owner and chairman Feng Liang is a pioneer investor in the clean energy sector and a major shareholder and chairman of PUTALAI – the global leader in the field of lithium-ion battery anode materials.
Jayson established a vertical supply chain for energy materials that extends from upstream mining and processing operations to downstream precursor manufacturing and battery recycling.
The company has investments in lithium, nickel, copper and cobalt projects in several countries and more than 2,900 employees worldwide.
Use of funds
SGC will issue a total of 105,941,190 shares at $0.068 per share under the placement to raise $7.204 million (before costs).
Eligible investors in the placement will be provided with Junior Minerals Exploration Incentive (JMEI) tax credits because of St George’s successful application to participate in the Federal Government’s JMEI program and will receive a JMEI tax credit statement from SGC following completion of the FY 23 tax year.
The money will be applied towards lithium exploration and development activities at Mt Alexander, exploration at SGC’s other projects and for working capital.
“The new funds secured will enable St George to aggressively continue drilling and exploration activities at its Mt Alexander Project," Prineas said.
"We are currently completing our maiden lithium drill program at Mt Alexander to test several pegmatite outcrops where high-grade lithium mineralisation has been confirmed by assays of rock chip samples.
“In 2023, the drill program will escalate with more than 20,000 metres of drilling planned in the first half of the calendar year to fully scope the extent and scale of lithium mineralisation along the 15-kilometre-long prospective pegmatite corridor controlled by St George.”