St George Mining Limited (ASX: SGQ) has secured a strategic capital injection of A$5 million to expedite drilling activities at its 100%-owned Araxá Project in Brazil. The placement comes at a 13.1% premium to the Company’s 30-day volume weighted average price (VWAP).
The new funding supports an expanded exploration campaign targeting high-grade rare earths and niobium deposits.
Premium-Funded Expansion Initiative
The Company has finalised firm commitments from both existing shareholders and strategic investors, particularly from Europe. The placement comprises 131,578,948 fully paid ordinary shares issued at A$0.038 per share.
This price sits 13.1% above the 30-day VWAP of A$0.033 as of 22 July 2025.
John Prineas, Executive Chairman of St George, said:
“We are delighted to secure additional funds at a premium to SGQ’s 30-day volume weighted average price, ensuring that we are fully funded for an upscaled diamond drill program with minimum dilution to existing shareholders.”
He further added:
“This successful placement is recognition of the world-class rare earths and niobium resource we have already confirmed for Araxá and the value creating workstreams currently underway – including a major drill program to expand the resource, metallurgical testwork to confirm processing flowsheets and development studies to fast-track permitting approvals.”
John Prineas at the Araxá site inspecting auger drilling samples
Triple Rig Deployment to Boost Resource Growth
St George Mining will now deploy three diamond drill rigs at the Araxá Project, up from one previously planned. These rigs will join existing auger and reverse circulation (RC) rigs already on-site.
Key details of the expanded drill campaign:
- Over 9,000 metres of diamond drilling are planned.
- Additional drilling may follow once airborne magnetic survey data is analysed.
- Targets include expansion zones to the west, north and east of the existing MRE.
- Deeper drilling will test continuity at depth.
- Infill drilling aims to convert inferred resources to the Indicated category.
Diamond drilling is scheduled to commence within two weeks.
Map of the project tenure showing planned drill hole collars
Strategic Importance of Araxá’s Rare Earths and Niobium Resource
The Araxá Project’s Mineral Resource Estimate (MRE) confirms:
- Rare Earths: 40.64 million tonnes @ 4.13% Total Rare Earth Oxides (TREO)
- Niobium: 41.20 million tonnes @ 0.68% Nb₂O5
These figures position Araxá among the world’s largest undeveloped rare earths and niobium resources.
Mineralisation begins at surface and remains open in all directions. More than 500 historic drill intercepts show high-grade zones of up to 8% Nb₂O₅ and 33% TREO.
3D perspective of the Araxá Project MRE – TREO% grades
US-Based Partnerships Under Evaluation
St George is exploring partnerships with US-based entities to support downstream processing and magnet production. These partnerships are expected to leverage rising US demand for secure, non-Chinese sources of rare earths.
The US Department of Defense committed US$400 million in equity to MP Materials (NYSE: MP) and signed a 10-year agreement guaranteeing a US$110 per kilogram price floor for Neodymium-Praseodymium products. Apple also invested US$500 million to support a rare earths processing facility by MP Materials within the United States.
These transactions reflect the strategic urgency of securing critical minerals. St George aims to position Araxá as a key supplier to this growing North American supply network.
St George Mining believes Araxá is well-placed to serve this demand.
“We believe that the Araxá Project has potential to be developed under an accelerated timeline, something investors are clearly realising and wanting to be part of,” said John Prineas.
Robust Project Infrastructure and Government Backing
St George Mining Limited (ASX:SGQ) acquired full ownership of the Araxá Project on 27 February 2025. The project sits adjacent to CBMM’s globally recognised niobium operations in Minas Gerais. The region has a long-standing history of niobium production.
Advantages of Araxá’s location include:
- Established transport infrastructure.
- Skilled local workforce.
- Ready access to renewable power.
- Support from local and federal Brazilian authorities.
The project benefits from well-developed infrastructure, including transport corridors, access to renewable energy, and local skilled labour. These attributes position Araxá for cost-effective development and potential fast-track production.
St George has secured government backing for fast-tracked permitting and assembled a seasoned in-country project team.
Drilling operation by the field team at Araxá Project
Rare Earths and Niobium: Critical Minerals Driving Global Technology and Defence
Rare earth elements and niobium are increasingly recognised as critical to the future of global technology, energy, and defence systems. These materials serve as the backbone for a wide range of industrial and high-tech applications.
Rare earths are essential for magnets, batteries, catalytic converters, and electronics. Their unique properties support advanced defence systems, including sonar, radar, gamma-ray detectors, and chemical agent alarms.
Niobium strengthens steel for infrastructure, aerospace, and automotive use. It is also vital for superconducting materials used in quantum computing, medical imaging, and particle accelerators.
Australia, Brazil, and North America are emerging as important contributors to the rare earth and niobium supply chain. Companies operating in these jurisdictions are drawing strong interest from strategic investors aiming to diversify sourcing and reduce geopolitical risk.
St George Mining (ASX: SGQ) is advancing the high-potential Araxá Project in Brazil. Backed by firm investor commitments, ties to Brazil’s MAGBRAS Initiative and strong institutional support, the project boasts a Mineral Resource Estimate of 40.6Mt @ 4.13% TREO, including high-grade niobium. Recent capital raising and drilling expansion initiatives reflect growing market interest and confidence in Araxá’s strategic importance.
Global Industry Outlook
Industry forecasts indicate the rare earths market will surpass US$16.1 billion by 2034, with niobium also experiencing rising demand amid the shift toward electrification and advanced materials. Given global supply chain constraints — particularly the dominance of Chinese production — countries and companies are moving swiftly to secure alternative and ethical sources of these critical minerals.
Investor Outlook and Future Milestones
The successful A$5 million capital raise marks a pivotal moment for St George Mining. The placement, completed at a 13.1 percent premium to the 30-day VWAP, reflects strong investor confidence in the company’s strategic direction and asset quality.
The premium pricing of A$0.038 per share reinforces market trust in St George’s leadership and execution capability. The additional capital provides a fully funded pathway for the upscaled diamond drill program, resource conversion efforts, and advancement of development studies.
As of July 25, 2025, St George Mining Limited (ASX: SGQ) is trading at A$0.041 per share, within a 52-week range of A$0.015 to A$0.045. The Company’s current market capitalisation stands at approximately A$104.2 Million, with 2.7 Billion shares on issue.
