St George Mining (ASX: SGQ) has received firm commitments to raise $72.5 million via a placement of ordinary shares to national and overseas institution investors as well as to Hancock Prospecting Pty Ltd.
The funds raised will be applied to advancing the company’s 100%-owned, world-class rare earths-niobium Araxá project in Brazil towards a final investment decision on a mine development.
The equity raising recognises the expedited pathway for development of the large, high-grade critical mineral resource at Araxá.
Significant institutional demand – led by major North American and European funds – has raised $50 million through an institutional placement of shares at 10 cents each. The institutional raising was upsized because of high demand.
A further placement, also at 10 cents, to Hancock Prospecting will raise an additional $22.5 million and cement the position of a highly credentialed Australian resource company on the St George register. The placement to Hancock Prospecting is subject to approval by St George shareholders next month.
Funding will be applied towards an upgrade of the Araxá Mineral Resource Estimate, project permitting, metallurgical test work including pilot plant development, feasibility study work and deferred cash consideration payable to Itafos Inc.
In addition to niobium, Araxá hosts samarium, lutetium, terbium, dysprosium and gadolinium – all of which are in the US Department of Interior’s Top 10 critical minerals, confirming Araxá as an important, potential supplier of sought-after critical metals. The US Department of Interior has assessed that the loss of foreign supply of niobium would cause the second-biggest deficit in US GDP by all critical minerals, further highlighting the strategic importance of the world-class niobium resource at Araxá.
On 9 October 2025, China’s Ministry of Commerce announced comprehensive export controls covering technologies and materials across the entire rare earths supply chain – further denying countries outside China supply of and access to rare earths magnets and materials.
The Araxá project has the largest and highest-grade carbonatite-hosted REE resource in South America and second-highest grade REE resource in the Western world. The JORC-compliant Mineral Resource Estimate is 40.6Mt @ 4.13% TREO, with a major drill program underway to expand and upgrade the resource.
Commenting on the $72.5 million equity raising, St George Mining executive chairman John Prineas said:
“We are delighted with the strong support received from local and overseas institutional investors who recognise the enormous potential of our high-grade rare earths and niobium project at Araxá.
“We are also very pleased that Hancock Prospecting has chosen to increase its existing shareholding in St George and emerge as a substantial shareholder. Hancock Prospecting is a company with significant experience in recognising the value in strategic commodities and backing successful critical minerals companies including MP Materials and Lynas Corporation – as well as having significant project execution and delivery experience for St George to leverage off in the future.
“The world-class resource at Araxá and its favourable project logistics – with high-grade mineralisation starting from surface and a location in an established Tier 1 mining region with ready access to transport infrastructure, renewable power and workforce – is attracting substantial investor interest at a time when there is unprecedented action globally by both governments and private enterprise to establish new and secure supply chains for critical minerals products.
“We believe the Araxá project has the potential to be developed under an accelerated timeline to become one of the few next-generation rare earths and niobium producers worldwide, something investors are wanting to be part of.
“The new funding will bolster St George’s program of advancing the Araxá project through feasibility study work and towards a financial investment decision.
“These workstreams complement an aggressive drilling program underway at the Araxá project that is designed to expand and upgrade the already world-scale Mineral Resource Estimate.
“We thank existing and new shareholders for their support in St George and recognition of our efforts to deliver significant, sustained value from the Araxá project. We are excited about providing more updates as we advance this truly unique critical minerals opportunity.”
