St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) has announced a successful A$72.5 million equity raising to fast-track its flagship Araxá Rare Earths-Niobium Project in Brazil toward a Final Investment Decision (FID). The funding comprises two tranches — an A$50 million institutional placement and a A$22.5 million strategic investment by Hancock Prospecting Pty Ltd, marking a major endorsement from one of Australia’s leading resource investors.
The institutional placement, priced at A$0.10 per share, attracted significant demand from major North American and European funds, alongside participation from local institutions and existing shareholders. The Company plans to issue 500 million new shares under ASX Listing Rules 7.1 and 7.1A.
The strategic placement with Hancock Prospecting, subject to shareholder approval at St George’s Annual General Meeting scheduled for 26 November 2025, will strengthen the Company’s register with a well-recognised long-term investor in critical minerals.
John Prineas, Executive Chairman of St George Mining, 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.”
He added, “We are also very pleased that 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.”
Figure 1: St George Mining Limited
Funding to Drive Araxá Towards Final Investment Decision
The capital raised will fund an extensive work program at the Araxá Project, including:
- Upgrading the Mineral Resource Estimate (MRE)
- Advancing permitting and feasibility studies
- Developing metallurgical test work and a pilot plant
- Covering deferred consideration to Itafos Inc.
Prineas emphasised that the infusion of capital will enable the Company to accelerate feasibility activities and expand its current drill program.
“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,” Mr. Prineas noted.
Figure 2: Araxá: A World-Class Rare Earths and Niobium Resource
The Araxá Project hosts one of the largest and highest-grade carbonatite-hosted rare earths and niobium resources in the Western world.
Its JORC-compliant Mineral Resource Estimate stands at:
- Rare Earths: 40.6 Mt at 4.13% TREO
- Niobium: 41.2 Mt at 0.68% Nb₂O₅
Figure 3: A maiden MRE for the Araxá Project
The NdPr (neodymium and praseodymium) grade of 7,800 ppm highlights Araxá’s potential as a major supplier of materials vital for permanent magnet manufacturing. Moreover, the project contains six of the US Department of Interior’s Top 10 critical minerals — including niobium, samarium, lutetium, terbium, dysprosium, and gadolinium.
Figure 4: Auger drilling at the Araxá Project.
Strategic Importance and Global Supply Chain Context
The United States’ Top 10 critical minerals list highlights several elements vital to advanced technologies and national security.
- Niobium: Strengthens high-performance steel alloys and is used in superconducting technologies.
- Samarium: Applied in advanced permanent magnets, precision optical instruments, and nuclear components.
- Rhodium: Plays a vital role in emission control systems and various chemical manufacturing processes.
- Lutetium: Used in petroleum refining catalysts and specialised medical imaging applications.
- Terbium: Important for high-efficiency magnets, fuel cells, and advanced electronic devices.
- Dysprosium: A key element in producing durable magnets, particularly for electric vehicle motors.
- Gallium: Essential for semiconductors, LED lighting, and solar cell manufacturing.
- Germanium: Integral to fibre-optic communication, infrared optics, and solar power technologies.
- Tungsten: Valued for its strength and heat resistance, making it ideal for mining tools and defence-grade ammunition.
Niobium’s strategic importance has intensified in recent years. The US Department of Interior has assessed that losing access to foreign niobium supply could cause the second-largest GDP deficit among all critical minerals, underlining its importance to global supply chains.
Meanwhile, China’s recent announcement of comprehensive export controls across its rare earths industry on 9 October 2025 has further escalated the urgency for diversified supply chains. St George’s Araxá Project, located in Brazil, a country with stable geopolitical ties, is positioned as a potential near-term, non-Chinese source of critical minerals for global markets.
St George has already established a strategic alliance with REAlloys, a US-based leader in rare earth processing and magnet materials supply, reinforcing the Project’s downstream potential.
“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 want to be part of,” said Prineas.
Figure 5: Possible loss of GDP of America due to disruptions in foreign trade (Source: Visual Capitalist)
Niobium Market Overview
According to Mordor Intelligence, the global niobium market is projected to grow from 79.68 kilotons in 2025 to 99.10 kilotons by 2030, representing a CAGR of 4.46%.
This growth is driven primarily by strong demand from the construction and automotive industries, where niobium micro-additions enhance high-strength low-alloy (HSLA) steels by up to 30% in tensile strength while preserving weldability.
Price stability, averaging USD 45–50 per kilogram, encourages long-term offtake agreements with infrastructure developers. Additionally, rising applications in battery anodes, superconductors, and hydrogen-ready pipeline steels are diversifying niobium’s end markets.
By type, ferroniobium accounted for 93.24% of 2024’s market share, while niobium oxide is forecast to grow at a 4.50% CAGR through 2030. By region, Asia-Pacific leads with a 60.54% share, underscoring its role as a global hub for advanced materials production.
Rare Earths Market Outlook
The global rare earth elements (REE) market, valued at USD 3.95 billion in 2024, is projected to reach USD 6.28 billion by 2030, with a CAGR of 8.6% from 2025 to 2030.
The 2022 price spike, driven by geopolitical tensions and supply disruptions, has been followed by sustained revenue growth as demand for magnets, electric vehicles, and renewable energy technologies continues to rise.
The Araxá Project’s combination of niobium and high-value REEs positions St George as a strategic contributor to this expanding global sector.
Advancing Towards Development
The Company’s near-term objectives include:
- Completion of feasibility and pilot plant studies
- Expansion of the current drilling program
- Strengthening alliances with downstream partners in North America and Brazil
- Fast-tracking environmental and regulatory approvals
St George has already assembled an experienced in-country team and secured government support for expedited project approvals. Located adjacent to CBMM’s world-leading niobium mine, Araxá benefits from exceptional access to infrastructure, skilled workforce, and renewable power.
“The new funding will bolster St George’s program of advancing the Araxá Project through feasibility study work and towards a financial investment decision,” said Mr. Prineas.
“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.”
Figure 6: Ferroniobium generated at the niobium facilities of CBMM
Investors’ Outlook
St George’s latest A$72.5 million capital raise underscores strong institutional and strategic confidence in the Company’s long-term vision. With Hancock Prospecting now a key shareholder, the Company is financially positioned to advance Araxá rapidly through development milestones.
Market Outlook
The share price of St George was trading at A$0.135, up 17.391% from the previous day. The market capitalisation of A$338.75 million, alongside a 450% year-to-date share price increase, reflects growing investor enthusiasm toward critical minerals projects in geopolitically secure jurisdictions.
Figure 7: Surge in the share price of St George in the last 1 year
As global demand for rare earths and niobium continues to climb amid ongoing supply disruptions, St George’s Araxá Project stands as one of the most strategically significant developments in the Western Hemisphere — poised to deliver both shareholder value and supply chain resilience.
