St George Mining Limited (ASX: SGQ) has announced a restructure of its Lithium Star joint venture with Amperex Technology Limited (“ATL”), clearing the path for ATL to take a strategic shareholding in the Company.
The move consolidates full ownership of Lithium Star within St George Mining while giving ATL direct exposure to the Company’s flagship Araxá Niobium and Rare Earths Project in Brazil.
ATL, wholly owned by TDK Corporation of Japan, is the world’s leading producer of lithium-ion batteries by cells and batteries produced in calendar year 2025. Bringing ATL to the share register represents a meaningful vote of confidence in St George Mining’s critical minerals strategy.
Figure 1: Aerial photograph of the Araxá Project site in Minas Gerais, Brazil. [Source: St George Mining Limited]
The Restructure: What Changed and What It Means
Lithium Star Pty Ltd was previously owned 90% by St George Mining and 10% by ATL. Under the restructure, ATL will transfer its 10% stake to St George Mining.
In exchange, St George Mining will issue 12,500,000 fully paid ordinary shares to ATL at A$0.16 per share, for a total consideration of A$2,000,000.
That issue price sits 36% above the 30-day volume-weighted average price (VWAP) of A$0.1172 as at 29 May 2026. A premium-priced placement, rather than a discount, signals that ATL sees value well above the prevailing market price.
Following completion, Lithium Star will become a wholly-owned subsidiary of St George Mining.
| Term | Detail |
|---|---|
| Transaction | ATL transfers its 10% stake in Lithium Star to St George Mining. |
| Consideration | A$2,000,000, paid via 12,500,000 St George ordinary shares at A$0.16 per share. |
| Premium to VWAP | 36% above the 30-day VWAP of A$0.1172 as at 29 May 2026. |
| Shareholder approval | Required at a general meeting to be held in early July 2026. |
| ATL buyback right | ATL may buy back vendor shares at sale price if St George announces a JORC lithium resource at Lindville or Buningonia. |
| Offtake right | ATL retains first right of refusal on up to 25% of lithium product from any Lithium Star project at the Preferred Price (CIF benchmarked; minimum 8% discount to ATL). |
| Lithium Star post-deal | Becomes a wholly-owned subsidiary of St George Mining. |
Table 1: Key terms of the Lithium Star restructure. [Source: St George Mining Limited ASX Announcement, 2 June 2026]
The issue of the 12,500,000 SGQ shares remains subject to shareholder approval at a general meeting scheduled for early July 2026.
ATL: A Global Industry Partner Joins the Register
Amperex Technology Limited (ATL) is headquartered in Hong Kong and operates manufacturing facilities in Dongguan and Ningde in China. It is 100% owned by TDK Corporation, the Japanese multinational electronics group.
Figure 2: Dongguan Amprex Technology Limited. [Source: ATL]
ATL originally partnered with St George Mining in 2023, when it entered the Lithium Star JV to gain access to greenfields lithium exploration projects in Western Australia.
Under the restructure, ATL retains commercially meaningful rights across both lithium and critical minerals:
- Offtake right: First right of refusal on up to 25% of any lithium product produced from Lithium Star projects, at a price benchmarked to long-term offtake contracts with a minimum 8% discount in ATL’s favour.
- Buyback right: ATL may buy back the vendor shares at the sale price if St George Mining announces a JORC-compliant lithium resource at the Lindville or Buningonia projects.
- Araxá exposure: As a St George shareholder, ATL gains indirect exposure to the Araxá Niobium and Rare Earths Project, one of the world’s largest undeveloped deposits of this kind.
John Prineas, Executive Chairman of St George Mining, said:
“ATL has been a long-standing, supportive partner of St George’s quest to drive shareholder value from discovering and commercialising critical minerals opportunities. We are therefore delighted that ATL has agreed to switch its stake in the Lithium Star JV into a strategic shareholding in St George.”
He added that ATL’s retention of offtake rights over future lithium production gives the global battery maker a direct commercial link to any lithium discoveries the Company makes in Western Australia.
Araxá Project: The Asset ATL Now Has Exposure To
St George Mining acquired 100% of the Araxá Project on 27 February 2025. Located in Minas Gerais, Brazil, directly adjacent to CBMM’s globally recognised niobium operations, the Project sits in one of the world’s most established niobium-producing regions.
On 3 March 2026, St George Mining announced a major resource upgrade. The JORC-compliant Mineral Resource Estimate (MRE), the industry-standard figure for how much mineral material exists in the ground, now stands at:
| Classification | Mt | TREO (%) | MREO (%) | Nb₂O₅ (%) |
|---|---|---|---|---|
| Measured | 8.02 | 5.23 | 0.95 | 1.06 |
| Indicated | 21.46 | 4.31 | 0.80 | 0.63 |
| M&I | 29.49 | 4.56 | 0.84 | 0.75 |
| Inferred | 41.42 | 3.71 | 0.72 | 0.52 |
| Total | 70.91 | 4.06 | 0.77 | 0.62 |
Table 2: Total JORC 2012 Mineral Resource Estimate for the Araxá Project at a 2% TREO cut-off. TREO = Total Rare Earth Oxides; MREO = Magnet Rare Earth Oxides; Nb₂O₅ = Niobium Pentoxide. [Source: St George Mining Limited]
| Classification | Mt | Nb₂O₅ (%) | TREO (%) | MREO (%) |
|---|---|---|---|---|
| Measured | 0.02 | 0.51 | 1.77 | 0.34 |
| Indicated | 2.59 | 0.31 | 1.44 | 0.31 |
| M&I | 2.60 | 0.31 | 1.45 | 0.31 |
| Inferred | 21.95 | 0.54 | 1.17 | 0.27 |
| Total | 24.56 | 0.52 | 1.20 | 0.28 |
Table 3: Additional JORC 2012 Mineral Resource Estimate at a 0.2% Nb₂O₅ cut-off — material that meets the niobium threshold but falls below the 2% TREO cut-off. [Source: St George Mining Limited]
The combined Nb₂O₅ inventory across both tables stands at 95.47 million tonnes, representing all niobium-bearing material at the project.
Mineralisation begins at surface and remains open in all directions. The Project has established infrastructure, government support for expedited approvals, and access to a skilled local workforce with direct experience in niobium operations.
Figure 3: 3D rendering of the Araxá Project MRE showing TREO% grade distribution across the deposit. [Source: St George Mining Limited]
Lithium Star: Western Australia Greenfields Remain in Play
Lithium Star was established in 2023 to carry out greenfields lithium exploration in Western Australia, near established spodumene-producing operations.
Priority targets have been identified at the Buningonia and Lindville projects. The Company intends to continue advancing those lithium opportunities that it believes have genuine potential for a significant discovery.
Prineas said the Company would “continue to methodically progress those lithium opportunities that we believe have potential for a significant discovery, without taking our eye of our immediate priority — driving the Araxá Project towards development for the benefit of all shareholders.”
Critical Minerals: Why This Pairing Matters
Niobium is used to strengthen steel for infrastructure, automotive manufacturing, and aerospace. It is also a key material in superconducting applications, including quantum computing and medical imaging.
Rare earth elements, particularly magnet rare earths such as neodymium and praseodymium, are essential inputs for electric vehicle motors, wind turbines, and defence systems.
Figure 4: Use cases of Niobium and Rare Earths.
The niobium market is forecast to grow from around 79,680 tonnes in 2025 to approximately 103,180 tonnes by 2031, at a compound annual growth rate of 4.4%, according to Mordor Intelligence.
ATL’s entry to the St George register connects a major end-user of critical minerals with one of the world’s largest undeveloped niobium-rare earths deposits. That link could carry significant downstream significance as global supply chain pressures intensify.
Investor Outlook
ATL’s decision to convert its JV stake into St George Mining equity at a 36% premium to VWAP is a commercially deliberate move. It reflects a preference for direct exposure to the broader St George asset base rather than a single joint venture.
For existing St George shareholders, the restructure removes a minority partner from Lithium Star and replaces it with a globally significant strategic investor on the register.
| Metric | Data |
|---|---|
| Last Price (ASX: SGQ) | A$0.122 per share |
| 52-Week High | A$0.180 per share |
| 52-Week Low | A$0.015 per share |
| Market Capitalisation | ~A$473.94 million |
Table 4: St George Mining (ASX: SGQ) Share Price Data
Key milestones to watch in the months ahead:
- Shareholder approval: General meeting for the share issuance expected in early July 2026.
- Worley feasibility studies: Ongoing economic and technical work by Worley Engenharia Ltda for the Araxá Project, appointed in May 2026.
- Araxá drilling and metallurgy: Continued resource expansion drilling and flowsheet development at the Araxá Project.
- Lithium Star exploration: Further work at Buningonia and Lindville, targeting a potential JORC lithium resource.
DISCLAIMER
This article has been prepared by Colitco for informational purposes only. It does not constitute financial advice, investment advice, or a recommendation to buy or sell any securities. The content is based on publicly available information, including ASX announcements made by St George Mining Limited (ASX: SGQ). Readers should conduct their own research and seek independent financial advice before making any investment decisions. Past performance is not a reliable indicator of future results. All figures are sourced directly from company announcements and are reproduced in good faith. Share price data is dynamic and subject to change; readers are advised to verify current prices at asx.com.au/markets/company/SGQ before making any decisions.
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
