St George Mining Limited announced that it has signed a non-binding Memorandum of Understanding with SVOLT Energy Technology Co., Ltd. to consider collaboration on the development of the Mt Alexander Lithium Project as well as the acquisition of other lithium projects and lithium business opportunities. SVOLT has engaged in battery R&D for more than 10 years and was established as an independent battery manufacturer in 2018 following a spin-off from Great Wall Motor Company, one of the world's largest vehicle manufacturers. SVOLT is a fast-growing global company with more than 10 manufacturing bases including plants established or under construction in China and Germany.

In addition to being one of the world's largest battery manufacturers, SVOLT is recognised in the industry as a leading technology innovator. SVOLT pioneered the cobalt-free battery, which has high-safety and low-cost attributes, and is now the global leader for mass-produced cobalt-free batteries. SVOLT has extensive R&D centres located in China, Germany, Korea and India.

SVOLT has a pro-active strategy to secure supply chains in the lithium battery sector with investments in a number of lithium value chain projects world-wide. The MOU signed by St George and SVOLT establishes a collaborative working relationship for the parties to consider and negotiate partnering on lithium-business opportunities, including at St George's Mt Alexander Lithium Project. The MoU applies only to project tenements owned 100% by St George.

The range of commercial transactions that may be considered by the parties includes: SVOLT to invest up to $5 million in St George by way of a placement of shares from St George to SVOLT, subject to agreement on pricing and completion of due diligence by SVOLT. Offtake arrangements whereby SVOLT may secure up to 25% of potential spodumene concentrate from the Mt Alexander Lithium Project. The provision of funding support to St George for the development of lithium projects.

Potential formation of a joint venture by St George and SVOLT to acquire and develop new lithium projects. St George and SVOLT will form a strategic management committee to consider potential investment opportunities. SVOLT will also have the right to appoint one director to the Board of St George so long as SVOLT holds more than 5% of the fully paid ordinary shares of St George (and subject to any regulatory approvals).

The relationship has potential to significantly support the growth of St George's business, particularly through: SVOLT's industry leading technical expertise in the processing of lithium and other battery metals for use in battery manufacture. SVOLT's extensive knowledge and experience in the marketing of lithium and other battery metals. SVOLT's substantial financial capacity via its cash reserves and relationship banks.

The MoU has an initial term of two years. Any specific arrangement or transaction agreed by the parties will be subject to further documentation and execution of definitive formal agreements. The MoU is non-exclusive and each party may pursue business opportunities with any other third party.