en.Wedoany.com Reported - St George Mining (ASX:SGQ) has restructured its joint venture with Amperex Technology Limited (ATL) under the Lithium Star partnership. Following the restructuring, the global battery manufacturer becomes a direct shareholder of St George, thereby gaining participation rights in the company's Araxá rare earth and niobium project in Brazil.
Under the restructuring plan, ATL will convert its 10% project-level stake in Lithium Star into an AUD 2 million equity investment in St George Mining. The shares will be issued at AUD 0.16 per share, representing a 36% premium over St George's 30-day volume-weighted average price of AUD 0.1172 as of May 29, 2026. Subject to shareholder approval at a general meeting, Lithium Star will become a wholly-owned subsidiary of St George, and the existing shareholders' agreement between the parties will be terminated.
Through this AUD 2 million share issuance, ATL becomes a shareholder of St George while retaining a priority offtake right for 25% of any lithium product from the Lithium Star project, at an 8% discount to benchmark long-term contracts. Additionally, if St George discovers JORC-compliant lithium resources at Lindville or Buningonia, ATL retains the right to repurchase the Lithium Star seller's shares.
Executive Chairman John Prineas said the company welcomes ATL's agreement to convert its Lithium Star shares into a stake in St George. He noted that the greenfield projects underpinning Lithium Star remain a highly promising opportunity for St George, with early-stage exploration already identifying multiple follow-up targets. Furthermore, St George has appointed Worley as technical advisor for the Araxá project to support project advancement.
St George stated that Lithium Star will continue drilling for lithium prospects at Buningonia and Lindville in Western Australia, while Araxá is the current focus. ATL participates in the Araxá project through its direct shareholding in St George, while retaining the right to future lithium production from Lithium Star. Since St George acquired the Araxá project in February 2025, approval processes have accelerated, the Brazilian team has been established, and a resource upgrade was completed in March 2026, making the project the company's primary growth engine. The upgraded JORC resource stands at 70.91 million tonnes at 4.06% TREO and 0.62% Nb₂O₅; additionally, there are 24.56 million tonnes of ore at a lower niobium cut-off grade, grading 0.52% Nb₂O₅ and 1.2% TREO.
The restructuring is subject to approval at a general meeting expected to be held in early July 2026. If approved, Lithium Star will become a wholly-owned subsidiary of St George, and ATL will continue to participate in the Araxá and future lithium projects through its shareholding in St George and retained offtake rights.
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