St George Mining (ASX: SGQ) has received firm commitments to raise $60 million via a two-tranche institutional placement of 600 million new fully paid ordinary shares at $0.10 each.
The placement was primarily supported by existing high-quality institutional investors, including St George’s largest shareholder, Hancock Prospecting Pty Ltd which committed to subscribe for $20 million in the placement. Following completion of the placement, Hancock will hold an interest in the company of ~10.5%.
New funds will be used to advance development of the company’s high-grade Araxá rare earths and niobium project in Minas Gerais, Brazil.
“We are delighted with the strong support received from new and existing institutional investors who recognise the compelling development potential of our Araxá project,” St George executive chairman John Prineas said.
“The world-class resource at Araxá has potential to be developed under an accelerated timeline – with high-grade mineralisation starting from surface and favourable project logistics in an established mining region – at a time when both governments and private enterprises around the world are rushing to establish new supply chains for critical minerals products.
“The newly secured funding will bolster and accelerate St George’s program of advancing the Araxá project through feasibility study work and a financial investment decision.”
Hancock’s executive chairman, Gina Rinehart, added:
“Hancock Prospecting is pleased to be able to support St George as the largest shareholder in the company with this additional investment and looks forward to seeing the Araxá project develop into an important part of the global critical minerals supply chain.”
