St George Mining Ltd (ASX:SGQ) has secured a $3 million strategic investment from Amperex Technology Ltd (ATL) for lithium exploration in Western Australia, where field work is expected to commence this month at three priority projects.
ATL, a global frontrunner in the development and production of high-volume lithium-ion batteries, will acquire a 10% stake in Lithium Star Pty Ltd, a St George subsidiary company with seven prospective hard-rock lithium projects in the region.
ATL’s investment underscores St George's ability to establish critical industry relationships with global leaders in the lithium-ion batteries space, further validating the company’s strategic decision to expand its battery metals project portfolio.
Investors are reacting favourably to the news, with St George shares up 10.53% at $0.042 in morning trade.
Due recognition
“We are delighted to welcome ATL – a world leader in lithium-ion batteries – as a partner for our lithium exploration in Western Australia,” St George executive chairman John Prineas said.
“This strategic investment recognises the exciting potential of the seven prospective lithium projects secured by our subsidiary, Lithium Star.
“It also recognises the technical expertise and commitment of the St George team, which has considerable experience in exploration for lithium, nickel and other battery metals as well as the development and operation of open-pit and underground mines in Western Australia.”
Maximising value
As part of its investment, ATL, recognised worldwide for its high-quality lithium-ion batteries with industry-leading safety standards, power density and fast-charge technology, will provide technical support to maximise the value of St George's lithium projects.
ATL has the option to increase its stake in Lithium Star further down the road with funding to be agreed upon.
Additionally, both St George and ATL are in discussions on partnering in other lithium business opportunities.
Field work imminent
Lithium Star holds 100% of 14 exploration licences in Western Australia, with 13 granted and one in application.
They comprise the Split Rock Project, the Buningonia Project, the Buningonia North Project, the Myuna Rocks Project, the Ten Mile West Project, the Carnamah Project and the Lindville Project.
Five of the projects are situated in the southern portion of the Yilgarn Craton, an area gaining a global reputation as a 'super province' for lithium with three spodumene-producing mines and five others in various stages of development.
Field exploration comprising mapping and rock chip sampling of pegmatites and geochemical sampling through soils or auger drilling will commence this month at the highest priority projects, Split Rock, Buningonia, Buningonia North and Myuna Rocks.
Aircore or reverse circulation drilling will be prioritised once lithium targets are identified for drill testing.
Map of the Yilgarn Craton showing St George’s projects and major lithium mines and deposits.
Relationship success
“The investment by ATL will strengthen our ability to advance the Lithium Star projects with minimal dilution to existing St George shareholders.
“The deal with ATL highlights St George’s strong success in developing key industry relationships with some of the largest and most important global players in lithium-ion batteries.
“The key downstream relationships formed by St George, including with Shanghai Jayson, SVOLT, Sunwoda Electronic and now ATL, underpin our capacity to grow in the lithium sector and validate our strategic decision to build out our portfolio of battery metals projects.”