St George Mining Ltd (ASX:SGQ) has signed a non-binding Memorandum of Understanding (MoU) with international battery materials investment firm Shanghai Jayson New Energy Materials Co Ltd, forming a strategic partnership to leverage the company’s lithium opportunities.
A leading producer of cathode precursor material for lithium-ion batteries, Jayson is also a globally significant supplier to the green energy sector with strong interpersonal connections to CATL and PUTALAI, two of the most prominent firms in the clean energy sector.
"Important strategic relationship"
“We are excited about this important strategic relationship with Jayson, a global leader in the new energy sector,” St George Mining executive chair John Prineas said.
“St George has consolidated a dominant landholding at the new Mt Ida Lithium Province with control of more than 15 kilometres 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 1.7 kilometres north-south and more than 3 kilometres east-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.”
Lithium-related business opportunities
Under the strategic partnership, Jayson and St George will assess the viability of partnering to develop several potential lithium opportunities in Western Australia, including:
- investment and offtake for SGQ’s Mt Alexander Lithium Project;
- funding support for SGQ business expansion and development;
- the acquisition and development of new lithium exploration projects; and
- the development of downstream lithium assets in Western Australia.
“Our strategic relationship with Jayson will strengthen our capacity to advance Mt Alexander and unlock the full potential of our large landholding in this new lithium province in Western Australia, the world’s best hard-rock lithium address,” Prineas continued.
“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 businesses in the clean energy sector.”
In the meantime, St George will continue its drilling and exploration efforts at the Mt Alexander Lithium Project, where assays are pending for a fresh set of results.