St George Mining has agreed to partner with global battery manufacturing firm SVOLT Energy Technology (SVOLT) for the development and acquisition of lithium projects.
In relation to this, the two firms have signed a non-binding memorandum of understanding (MoU).
The firms will consider joint development of the Mt Alexander lithium project in Western Australia, as well as explore the acquisition of other lithium projects and lithium business opportunities.
Under the MoU, which has an initial two-year term, SVOLT will have the option to invest A$5m in St George by way of a share placement. This will be subject to the agreement on pricing and the completion of due diligence.
The two firms will also consider signing offtake agreements, whereby SVOLT will be able to secure up to 25% of the potential spodumene concentrate from the Mt Alexander project.
SVOLT will also provide St George with funding support for the development of other lithium projects.
St George Mining executive chairman John Prineas said: “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.
“Our strategic relationship with SVOLT will strengthen our capacity to accelerate exploration and development at the project – particularly through the provision by SVOLT of technical advice for the marketing of lithium products, as well as the potential provision of development funding.
“Under the strategic relationship, we will also consider new project generation in Western Australia creating another potential growth engine for our respective companies.”
The MoU follows the signing of a similar arrangement by St George with battery investment company Shanghai Jayson New Energy Materials.