St George Mining Limited (ASX: SGQ) (“St George” or the “Company”) has secured firm commitments to raise A$60 million through a two-tranche institutional placement, issuing 600 million new fully paid ordinary shares priced at an offer price of A$0.10 each.
The raise was anchored by the Company’s largest shareholder, Hancock Prospecting Pty Ltd, the private mining empire of Gina Rinehart. Hancock committed A$20 million to the placement. Upon completion, Hancock will hold approximately 10.5% of St George Mining.
Funds will be directed toward development work at the Araxá Niobium and Rare Earths Project in Minas Gerais, Brazil, as the Company works to advance feasibility studies and progress toward a financial investment decision.
Figure 1: John Prineas, Executive Chairman of St George Mining, inspecting drilling samples at the Araxá Project site in Minas Gerais, Brazil. [Source: St George Mining Limited]
Placement Details: Two-Tranche Structure at A$0.10 Per Share
The placement will be issued in two tranches:
- Tranche 1: approximately 424.5 million new shares at A$0.10 per share, raising approximately A$42.4 million (before costs). Settlement is expected on Tuesday, 23 June 2026, with shares issued on Wednesday, 24 June 2026.
- Tranche 2: approximately 175.5 million new shares at A$0.10 per share, raising approximately A$17.6 million (before costs). This tranche requires shareholder approval at an Extraordinary General Meeting scheduled for 10 July 2026.
The offer price of A$0.10 per share represents a 9.1% discount to the last closing price of A$0.11 and a 3.5% discount to the Company’s five-day volume weighted average price of A$0.104 per share, calculated up to and including Friday, 12 June 2026.
New shares issued under the placement will rank equally with the Company’s existing fully paid ordinary shares. Canaccord Genuity (Australia) Limited and Jett Capital Advisors acted as Joint Lead Managers and Joint Bookrunners. Macquarie Capital (Australia) Limited served as financial adviser to St George.
Hancock Prospecting Backs Araxá – Gina Rinehart Deepens Commitment
Hancock Prospecting Pty Ltd took up A$20 million of the placement, subscribing for 200 million new shares. This is not Hancock’s first investment in St George Mining.
In October 2025, Hancock anchored a A$72.5 million capital raise for the Company, investing A$22.5 million at that time to emerge as a substantial shareholder. The latest commitment of A$20 million adds to that position, bringing Hancock’s post-placement interest to approximately 10.5% of the Company.
Gina Rinehart, the Executive Chairman of Hancock Prospecting, is Australia’s wealthiest person. According to the 2026 AFR Rich List, her estimated fortune stands at A$39 billion, the highest in the country for the seventh consecutive year. Hancock’s portfolio of rare earths investments extends beyond St George Mining to include positions in MP Materials and Lynas Rare Earths, the two largest Western producers of rare earths globally.
Rinehart’s decision to add to her stake in St George Mining, at the same price as the broader institutional raise, reflects a consistent position in what she sees as a strategically significant asset.
“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,” said Hancock Executive Chairman Mrs Gina Rinehart, AO.
Figure 2: Gina Rinehart, Executive Chairman, Hancock Prospecting [Source: Forbes]
Executive Chairman’s View: Fully Funded for the Next Stage
John Prineas, St George Mining’s Executive Chairman, described the raise as a strong vote of confidence in Araxá’s development potential from new and existing institutional investors.
“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.”
Mr Prineas added: “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.”
How the Funds Will Be Used: Feasibility Studies and a Financial Investment Decision
St George Mining will direct the A$60 million raised toward advancing the Araxá Project through the next major stages of development. These include:
- Feasibility study work – including a Pre-Feasibility Study and Definitive Feasibility Study – managed by Worley Engenharia Ltda, a global engineering firm appointed as feasibility technical adviser in May 2026.
- Metallurgical testwork and pilot plant operations – initial flotation tests completed in June 2026 confirmed high-grade niobium concentrates and a separate rare earth stream from surface saprolite material.
- Ongoing resource expansion drilling – a 10,000-metre program is active, with assay results being released progressively.
- Permitting progress – the Company is targeting completion of Brazilian environmental permitting approvals by Q4 2026.
- Advancement toward a Financial Investment Decision (FID) – the formal commitment to build a mine.
Metallurgical Testwork Confirms Dual-Product Potential
In June 2026, St George Mining reported the results of initial flotation testwork at Araxá, the first metallurgical testing ever conducted on the project’s ore. The testwork used approximately five tonnes of saprolite material collected from a shallow trench at the central project area.
Saprolite is weathered rock sitting just below the surface, typically the first material processed in an open-cut mining operation. Its behaviour in the lab is therefore directly relevant to what the earliest years of production at Araxá may look like.
The sample had average grades of 0.69% Nb₂O₅ (niobium pentoxide) and 9.29% TREO (Total Rare Earth Oxides). Two products were produced from the same ore:
- Niobium concentrate: Test 13 produced a 39.6% Nb₂O₅ concentrate at 54.27% flotation recovery; Test 7 produced a 40.17% Nb₂O₅ concentrate at 45.99% recovery. Both sit within the industry benchmark range of 40–60% recovery and 40–50% Nb₂O₅ grade for Araxá-style pyrochlore mineralisation.
- Rare earth concentrate stream: A separate rare earth element (REE) concentrate was recovered from the niobium flotation tailings. Test 12 produced a 15.7% TREO concentrate grade, a 1.6 times upgrade from the 9.8% TREO feed grade. Overall rare earth recovery across all streams was approximately 82%.
A one-month niobium pilot plant study at CIT-SENAI is scheduled for July 2026. A large-scale pilot plant at CEFET-MG in Araxá, with a throughput capacity of up to 300 kg per hour, is under construction and is expected to be operational by late Q4 2026.
Prineas noted the significance of producing both products from the same ore: “Our Araxá Project hosts world-class resources for each of niobium and rare earths — something which is unique amongst our critical metals peers. Our aim is to capture the full value of this mineralisation by producing commercial products of both niobium and rare earths in a potential mine development at Araxá.”
Figure 3: 3D perspective of the Araxá Project Mineral Resource Estimate showing TREO% grade distribution, highlighting open extensions and targets for the current resource expansion drilling program. [Source: St George Mining Limited]
Araxá Mineral Resource Estimate: A Globally Significant Deposit
In March 2026, St George Mining announced a major upgrade to the Araxá Mineral Resource Estimate (MRE). This is a JORC-compliant, independently verified calculation of how much mineral material exists in the ground.
The updated MRE, using a 2% TREO cut-off grade, includes a combined niobium inventory across both reporting tables of 95.47 million tonnes. Key figures include:
- Rare Earths (2% TREO cut-off): 70.91 Mt @ 4.44% TREO comprising 9.27 Mt Measured, 21.35 Mt Indicated, and 40.29 Mt Inferred.
- Niobium (0.2% Nb₂O₅ cut-off, primary table): 70.91 Mt @ 0.76% Nb₂O₅ same classified tonnages as above.
- Additional niobium inventory (0.2% cut-off, below 2% TREO threshold): 24.56 Mt @ 0.52% Nb₂O₅.
Mineralisation starts from surface, is open in multiple directions, and has returned some of the highest-grade niobium and rare earth intercepts seen globally. Drill holes have confirmed high-grade zones of up to 8% Nb₂O₅ and 33% TREO with spectacular drill intercepts such as 178.7m @ 4.34% TREO and 0.75% Nb₂O₅ from surface.
The project sits adjacent to CBMM’s globally recognised niobium facility in the Barreiro Carbonatite — the same geological setting that has made this region of Minas Gerais the world’s leading source of niobium.
Project Location Offers Established Infrastructure and Government Support
The Araxá Project is located in Minas Gerais, Brazil, a region with more than six decades of continuous niobium production and a mature base of industry-specific expertise.
Key structural advantages of the project include:
- Established transport corridors and ready access to renewable energy
- Skilled local workforce, with several St George team members drawn directly from CBMM’s operations
- High-grade mineralisation amenable to open-pit mining from surface – reducing capital intensity in early production years
- Government support for fast-tracked permitting, with completion targeted by Q4 2026
- Only approximately 10% of the tenement tested by drilling to date – leaving substantial exploration upside
St George Mining acquired 100% of the Araxá Project on 27 February 2025 and has since developed a seasoned in-country project team with deep experience in Brazilian niobium and rare earth processing.
Figure 4: Satellite image of the Araxá Project located Minas Gerais, Brazil [Source: St George Mining]
Critical Minerals Demand: Why Niobium and Rare Earths Matter
Both niobium and rare earth elements are on Australia’s and the US Government’s critical minerals lists. Their applications span industries that sit at the heart of the global energy transition and defence modernisation.
Niobium is added in small quantities to high-strength steel used in pipelines, bridges, automotive manufacturing, and aerospace structures. It is also a key input in next-generation battery anodes, an area where CBMM has committed to generating 30% of its revenue from non-steel products by 2030.
Rare earth elements, particularly neodymium, praseodymium, terbium, and dysprosium, are essential for permanent magnets in electric vehicle motors, wind turbines, and advanced defence systems.
Figure 5: Factors driving the demand for Critical Minerals.
According to Research Nester, the global niobium market was valued at approximately USD 3.4 billion in 2025 and is projected to exceed USD 6.5 billion by 2035, a compound annual growth rate (CAGR) of 6.8%.
The rare earth oxides market is projected to grow from USD 6.2 billion in 2024 to approximately USD 18.2 billion by 2034, a CAGR of 12.6%, according to Prophecy Market Insights. Supply chain diversification away from Chinese production has added urgency to the development of non-Chinese sources.
Brazil accounts for approximately 89% of global niobium supply. The Araxá region sits at the centre of that production base. As Western governments and enterprises accelerate efforts to establish new critical minerals supply chains, projects in Brazil that sit on the same geology as existing commercial operations carry a clear development advantage.
Investor’s Outlook
St George Mining enters this placement from a position of growing project momentum. Metallurgical testwork has confirmed dual-product potential. The resource has been substantially upgraded. A global engineering firm is managing feasibility work. And the Company’s largest shareholder, Mrs. Gina Rinehart, has added to her stake.
Table 1: SGQ share price data [ASX]
The A$60 million raise provides a fully funded pathway through feasibility study work and toward a financial investment decision, the formal commitment to build a mine. Key catalysts to watch in the months ahead include:
- Results from locked-cycle and recycle flotation testwork – expected to improve on open circuit recovery figures
- CIT-SENAI one-month pilot plant study on niobium flotation, scheduled for July 2026
- Large-scale pilot plant at CEFET-MG in Araxá – under construction, targeted for operation by late Q4 2026
- Progress on Brazilian environmental permitting, targeting completion by Q4 2026
- Ongoing assay results from the current 10,000-metre resource expansion drilling program
- Feasibility study advancement under Worley Engenharia Ltda
Disclaimer
This article has been prepared by Colitco in collaboration with St George Mining Limited as part of a commercial content and investor communications arrangement. Colitco may receive compensation for the production and distribution of this content. This article is intended for informational purposes only and does not constitute financial product advice, investment advice, or a recommendation to buy or sell any securities. The content reflects information available at the time of publication and may not be updated. All figures, data and statements have been sourced from St George Mining Limited’s official ASX announcements and publicly available sources. Readers should conduct their own independent research and seek professional financial advice before making any investment decisions. Past performance is not a reliable indicator of future results. Exploration results are not a guarantee of future resource definition or commercial production.
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
