PERTH (miningweekly.com) – Junior St George Mining will partner with battery giant SVOLT to hunt for lithium projects.
The two companies have signed a memorandum of understanding (MoU) to consider collaboration on the development of the Mt Alexander lithium project, in Western Australia, as well as the acquisition of other lithium projects and lithium business opportunities.
“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,” said St George executive chairperson John Prineas.
“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.”
Under the terms of the MoU, SVOLT will invest up to A$5-million in St George by way of a share placement, subject to the agreement on pricing and the completion of due diligence.
The MoU also covers offtake agreements where SVOLT will secure up to 25% of the potential spodumene concentrate from the Mt Alexander lithium project, with SVOLT to also supply funding support to St George for the development of other lithium projects. The two companies could also potentially joint venture to acquire and develop new lithium projects.
The MoU has an initial two-year term.