St George Mining (ASX: SGQ) has completed the acquisition of all the issued capital of Itafos Araxá Mineracao E Fertilizantes S.A (Itafos Araxá), which owns 100% of the advanced niobium-REE Araxá project in Minas Gerais, Brazil.
Completion of the deal heralds a new era for St George that positions the Perth company at the heart of the world’s leading niobium-producing district.
Highlights
- 100% acquisition completed: St George has completed the 100% acquisition of the Araxá niobium-REE project in Minas Gerais, Brazil, and immediately commenced work on mine development studies.
- World-class niobium location: The Araxá project is adjacent to, and within the same carbonatite complex as, the niobium mine of CBMM that produces approximately 80% of the world’s niobium.
- Enviable development potential: The Araxá project’s location in an established mining district with existing infrastructure (roads/power), proven route to market and readily available workforce provides a strong platform to fast-track potential development.
- $20m capital raising completed. St George is fully funded for 2025 drilling and development studies at the Araxá project including:
- Commencement of 5,000m drill program in March 2025, with ongoing drilling planned in 2025
- Maiden JORC-compliant Mineral Resource Estimate targeted for March 2025
- Metallurgical test work
- Production of sample niobium and REE products for distribution to potential off-take parties
- Completion of environmental, heritage and geotechnical studies
- Commencement of feasibility study work
Commenting on the completion of the Araxá project acquisition, St George executive chairman John Prineas said:
“Today is a landmark day for St George as we enter a new era. The high-grade niobium-REE Araxá project represents a tremendous opportunity for St George to potentially become a globally significant player in the niobium sector.
“The project is positioned as a de-risked, world-class project with extensive high-grade niobium and REE mineralisation confirmed by historical drilling, a long history of commercial niobium production in the region, access to existing infrastructure and availability of an experienced workforce.
“We have assembled a first-rate in-country management team – which counts decades of combined experience in niobium mining and mineral production at Araxá – to drive development work. We have also established a relationship with the Minas Gerais State Government to support expedited project approvals.
“We have been working hard to build the foundations from which we can accelerate development of the project and safely and sustainably unlock its world-class potential.
“We welcome the vendor of the Araxá project – Itafos Inc (TSX-V: IFOS), a global fertiliser company – as a new and substantial shareholder of St George with a shareholding of 10%.
“We look forward to providing all shareholders with exciting news as we move quickly to prove up the development potential at Araxá.”
