Massive lithium battery maker Amperex Technology Ltd (ATL) has picked up 10 per cent of a package of 7 hard rock lithium projects in WA owned by St George Mining .
Amperex is the world’s leading producer of lithium-ion batteries and is potentially a significant ally for St George as it looks to develop its suite of battery metals projects in WA.
ATL will tip $3m into St George subsidiary, Lithium Star that owns 100 per cent of the seven projects.
They include the Split Rock project, the Buningonia project, Buningonia North, Myuna Rocks, Ten Mile West, Carnamah and the Lindville Project.
St George will retain 100 per cent ownership of its other major projects including flagship project Mt Alexander, Woolgangie, Ajana and Mt Holland.
Remarkably, ATL’s investment values just seven of St George’s projects at just shy of $30m.
St George’s market cap is currently $31m.
The $3m will be deployed in search for lithium in three project areas initially, Split Rock, Buningonia North and Myuna Rocks in the southern Yilgarn Craton. The search begins with field mapping and rock chip sampling of the pegmatites in combination with soil and auger geochem sampling. The systematic appraisal will highlight areas for future aircore and reverse circulation drilling.
The key terms of the deal will see ATL pay $3 million to Lithium Star for 3,000,000 ordinary shares at $1 each.
Discussions are also ongoing between the joint venturers about other lithium business opportunities.
St George Mining executive chairman John Prineas said: “This strategic investment recognises the exciting potential of the seven prospective lithium projects secured by our subsidiary, Lithium Star.”
“The investment by ATL will strengthen our ability to advance the Lithium Star projects with minimal dilution to existing St George shareholders.”
Five of the seven projects included in the deal are in the southern portion of the Yilgarn Craton, an area gaining a global reputation as a ‘super province’ for lithium. Notably, it already hosts three spodumene-producing mines and five others in development.
In addition to its new found relationship with ATL, St George also has other key downstream relationships formed with Shanghai Jayson, SVOLT and Sunwoda Electronic, underpinning its capacity to move quickly and potentially find backing if it manages to eke out a minable lithium resource.
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