St George Mining Limited (ASX: SGQ) has secured a strategic placement from Shanghai Jayson New Energy Materials Co., Ltd, a globally significant supplier to the clean energy sector and becomes St George’s largest shareholder with a holding of 11.73%.
Jayson is the world’s leading producer of cathode precursor materials for lithium‐ion batteries and has established a diversified vertical supply chain for energy materials that extends from upstream mining to downstream precursor manufacturing.
“This is a group with deep financial capacity and technical capabilities in lithium‐ion battery technologies, mining, chemical engineering, and battery materials manufacturing,” said John Prineas, St George’s executive chairman.
“St George is delighted at this additional investment – a clear demonstration of Jayson’s faith in the potential of the company’s lithium projects that builds on its initial investment in St George a year ago.”
Jayson and St George have entered into a subscription agreement whereby Jayson (through its controlled subsidiary Hong Kong Jayson Holding Co., Limited) will acquire nearly 79M fully paid shares in St George at an issue price A$0.038 each to raise A$3M.
St George has also received commitments from sophisticated investors for the placement of an additional 52,631,578 fully paid shares in St George at A$0.038 per share to raise A$2M.
Proceeds from these placements will be applied towards the company’s flagship Mt Alexander Lithium Project, along with other prospective lithium projects in Western Australia, and as working capital.
St George and Jayson will collaborate on various commercial opportunities to leverage Jayson’s substantial financial and technical capabilities with a priority focus on maximizing the value of St George’s flagship Mt Alexander Lithium Project.
The next phase of exploration at the Mt Alexander project to test exciting new lithium prospects is already underway.
For further information, please visit: www.stgm.com.au
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