St George Mining Limited progresses its strategic acquisition of the Araxá Niobium-REE Project while reporting promising exploration results across multiple Australian projects, underpinning its critical metals ambitions.
- Araxá Niobium-REE Project acquisition locked in, expected Q1 2025 completion
- Strategic MOUs secured with SKI Hong Kong and Liaoning Fangda Group for marketing and development
- Positive drilling results at Destiny Project highlight copper and sulphide potential
- Lithium suite anomalies identified at Bunningonia, Myuna Rocks, Lindville, and Split Rocks projects
- Successful $3 million placement and $20 million funding secured to support exploration and acquisition
Araxá Acquisition Nears Completion
St George Mining Limited (ASX: SGQ) has confirmed the acquisition of the advanced Araxá Niobium-Rare Earth Elements (REE) Project in Minas Gerais, Brazil, is on track for completion in the first quarter of 2025. The company recently extended the conditional agreement deadline to 15 March 2025, securing additional time to finalize the transaction.
In parallel, St George has forged key partnerships to underpin the project's development. A Memorandum of Understanding (MoU) with SKI Hong Kong Limited, a global ferroniobium and ferro-alloys trader, aims to facilitate marketing, offtake, and financing arrangements. Additionally, a MoU with the State of Minas Gerais seeks to expedite regulatory approvals, reflecting the project's strategic importance to Brazil's critical metals supply chain.
Further strengthening its position, St George appointed Alger Consultoria e Assessoria Juridica, a leading Brazilian environmental consultancy, to manage socio-environmental and cultural heritage licensing matters. The company also signed MoUs with SENAI, Latin America's largest scientific agency, to collaborate on downstream processing technologies for niobium and rare earth products, highlighting a commitment to sustainable and value-added production.
Exploration Progress Across Australian Projects
Back in Australia, St George's Destiny Project in Western Australia's Eastern Goldfields delivered encouraging drilling results. Reverse circulation and aircore drilling confirmed mafic and ultramafic intrusions with moderate-to-high conductance features, indicating potential for significant sulphide mineralisation. Notably, copper grades up to 0.17% were intersected, warranting further geophysical surveys and targeted drilling.
At the Myuna Rocks Project near Ravensthorpe, aircore drilling identified lithium suite element outliers and widespread titanium mineralisation, suggesting a complex mineral system with potential for pegmatite-related lithium deposits. Similarly, the Bunningonia Project reported a significant lithium anomaly up to 145 ppm Li2O, alongside gold and pathfinder element trends, reinforcing its exploration potential.
The Lindville Project's stream sediment sampling revealed substantial tantalum anomalism, with concentrations up to 44.4 ppm Ta, and elevated lithium suite elements, aligning with historical pegmatite mining in the region. Meanwhile, the Split Rocks Project's auger sampling delineated multiple lithium suite anomalies associated with granite fertility and structural controls, guiding future drilling plans.
Corporate and Financial Update
To support its expanding exploration and acquisition activities, St George successfully completed a $3 million placement in December 2024, issuing 150 million shares and 75 million options. Subsequently, the company secured firm commitments for a $20 million capital raise dedicated to the Araxá Project's acquisition costs, exploration, and working capital. A shareholder meeting is scheduled for 18 February 2025 to approve these capital initiatives and related payments.
St George's cash flow report for the December quarter shows a net cash inflow from financing activities of $2.8 million, offsetting operating cash outflows related to exploration and corporate costs. The company ended the quarter with $4.49 million in cash and equivalents, providing over three quarters of funding runway at current expenditure levels.
Outlook and Strategic Implications
St George Mining's multi-pronged approach, combining a high-grade niobium-REE asset acquisition with active lithium and base metals exploration, positions it well within the critical minerals sector. The Araxá Project's integration into Brazil's supply chain, supported by government and industry partnerships, could unlock significant value. Meanwhile, ongoing drilling and geochemical programs across Australian projects continue to refine targets and expand the company's resource base.
Investors will be watching closely as St George advances regulatory approvals, finalizes the Araxá acquisition, and progresses exploration results that could underpin future resource delineation and development.
Bottom Line?
St George Mining’s strategic acquisition and exploration momentum set the stage for a pivotal year in critical metals development.
Questions in the middle?
- When will the Araxá acquisition be fully completed and operational milestones achieved?
- How will the partnerships with SKI Hong Kong and Liaoning Fangda Group translate into commercial offtake agreements?
- What are the next steps and timelines for drilling and resource definition at the Australian lithium projects?