How St George Mining Secured Full Control of Brazil’s Araxá Rare Earths Project Early
St George Mining has accelerated its final payments to Itafos, securing 100% unencumbered ownership of the Araxá Rare Earths and Niobium Project in Brazil. This move follows a significant equity raise aimed at advancing the project toward a Final Investment Decision.
- Early payment of US$11 million deferred consideration to Itafos
- Full and unencumbered ownership of Araxá Project secured
- A$72.5 million equity raising supports project advancement
- Ongoing drilling program expanding high-grade rare earths and niobium resource
- Downstream partnerships, including MagBras magnet facility, underway
Strategic Acquisition Milestone Achieved
St George Mining Limited (ASX, SGQ) has taken a decisive step in consolidating its position in the critical minerals sector by completing the early payment of the final US$11 million deferred consideration to Itafos Inc. This payment settles the second and third instalments of the Sale Agreement for the Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil, ahead of schedule. The move effectively releases all security interests held by Itafos over the project, granting St George full and unencumbered ownership.
Backing Ambitions with Capital
The accelerated settlement was funded by proceeds from a strongly supported A$50 million institutional placement, part of a broader A$72.5 million equity raising completed in October 2025. These funds are earmarked to advance Araxá towards a Final Investment Decision (FID), underscoring St George’s commitment to developing what is considered a globally significant rare earths and niobium asset.
A Resource of Global Significance
The Araxá Project boasts the largest and highest-grade carbonatite-hosted rare earth element (REE) resource in South America and ranks as the second-highest grade in the Western world. The maiden JORC-compliant Mineral Resource Estimate, announced earlier this year, totals 40.6 million tonnes at 4.13% total rare earth oxides (TREO) and 41.2 million tonnes at 0.68% niobium pentoxide (Nb₂O₅). Ongoing drilling programs aim to expand and upgrade this resource, with early results already indicating high-grade zones beyond the current resource boundaries.
Building Value Through Partnerships
Beyond resource expansion, St George is actively pursuing downstream partnerships to enhance the value chain of rare earths and niobium production. Notably, the company has engaged with MagBras, a public-private initiative focused on establishing a rare earths magnet manufacturing facility in Brazil. Such collaborations could position Araxá as a key supplier in the global critical minerals market, particularly as demand for rare earth magnets grows in clean energy and technology sectors.
Looking Ahead
With full ownership secured and a robust capital position, St George Mining is poised to accelerate development activities at Araxá. The company’s Executive Chairman, John Prineas, highlighted the transformative nature of the acquisition and the strategic importance of Araxá within the global critical minerals supply chain. As St George advances towards a Final Investment Decision, the market will be watching closely for further drilling results and technical updates that could unlock additional value.
Bottom Line?
St George’s early payment and full ownership of Araxá set the stage for accelerated development in a critical minerals hotspot.
Questions in the middle?
- How will upcoming drilling results impact the resource size and grade at Araxá?
- What are the timelines and milestones toward the Final Investment Decision?
- How will downstream partnerships like MagBras influence project economics and market positioning?
