St George Mining (ASX: SGQ) has announced that it has received overwhelming shareholder support for the company’s proposed acquisition of the high grade niobium-REE Araxá project in Minas Gerais, Brazil.
At a general meeting of shareholders in Perth today, all resolutions to enable the acquisition of the Araxá project were approved. St George expects to complete the acquisition of Araxá in the coming days, with financial completion of the transaction scheduled for 24 February 2025.
An on-the-ground works program including drilling is scheduled to start within weeks.
St George has assembled a highly experienced in-country team and established relationships with key authorities and parties in Brazil to drive the project through exploration work and development studies. The latest addition to the in-country team is the appointment (also announced today) of Carlos Alberto de Araújo, a former industrial project specialist at CBMM. Mr Araújo will advise on mineral and metallurgical plant design for potential niobium, rare earths and phosphate production at the Araxá.
Araxá is a de-risked, potentially world-class project in Minas Gerais, Brazil, located adjacent to CBMM’s world-leading niobium mining operations. Extensive high-grade niobium and REE mineralisation at the Araxá Project were confirmed by past drilling. High-grade mineralisation commences from surface, with more than 500 intercepts of high-grade niobium (>1% Nb2O5) with grades up to 8% Nb2O5 plus rare earths with grades up to 33% TREO.
“The high-grade niobium-REE Araxá project represents an enormous opportunity for St George to potentially become a globally significant player in the niobium sector,” executive chairman John Prineas said.
“The project is in the world’s ‘dress circle’ for niobium production, where the world-leader CBMM has been producing niobium products for more than 40 years. This enviable location provides St George with a ready platform to accelerate development of the project.
“St George has already assembled a highly experienced in-country team in Brazil – including some of the industry’s leading experts in niobium mining and processing – to drive exploration work and development studies.
“We are delighted that our shareholders – as well as new investors – have recognised the outstanding opportunity that the Araxá project presents for St George to create substantial, long-term value. We also appreciate shareholders’ patience as we worked hard to build the value of the Araxá acquisition since we first announced our plans last year.
“With on-ground work – including drilling and metallurgical test work – set to commence as soon as we complete the formalities of the acquisition, we look forward to providing shareholders with exciting news as we move quickly to prove up the development potential at Araxá.”
