St George Mining has signed a memorandum of understanding with battery giant SVOLT Energy Technology, marking its second major deal in the space of a week.
St George Mining has signed a memorandum of understanding with battery giant SVOLT Energy Technology, marking its second major deal in the space of a week.
Under the new two-year MoU, St George and SVOLT will collaborate to develop the junior’s Mt Alexander lithium project in the hope it could open the door to commercial offtakes or acquisitions down the track.
Among the potential transactions is an offtake arrangement whereby SVOLT could sign up for 25 per cent of spodumene concentrate from Mt Alexander, if and when it hits production.
St George's flagship sits south of Liontown’s Kathleen valley deposit in proximity to the Mt Ida fault, an area dubbed by industry as an emerging lithium province.
SVOLT will also kick in $5 million for St George via a placement with terms set to be confirmed after due diligence.
St George executive chair John Prineas was upbeat about the deal.
“We are delighted that SVOLT has recognised this tremendous growth opportunity at Mt Alexander – located in the heart of Western Australia’s newest hard rock lithium province,” he said.
“Under the strategic relationship, we will also consider new project generation in Western Australia creating another potential growth engine for our respective companies.”
It marks another win for St George, which last week signed an MoU with other global battery player Shanghai Jayson New Energy Materials.
That deal will also see the pair work towards investment and offtake opportunities for Mt Alexander, with Jayson subscribing for $2 million worth of St George shares in a recent placement.
New securities under the placement were on offer at 6.8 cents apiece.
St George last changed hands at 7.5 cents.
