St George Mining Secures A$60 Million to Fast-Track Araxá Rare Earths Project

Significant Capital Injection to Accelerate Araxá Development

St George Mining Limited (ASX:SGQ) has secured a substantial A$60 million through a two-tranche institutional placement priced at A$0.10 per share, aimed at fast-tracking its Araxá rare earths and niobium project in Brazil. The placement attracted strong support from existing institutional investors, with Hancock Prospecting Pty Ltd, the company’s largest shareholder, committing A$20 million and boosting its holding to approximately 10.5% post-placement.

Placement Structure and Pricing

The placement is structured in two parts: Tranche 1 involves the immediate issue of about 424.5 million shares raising roughly A$42.4 million, to be settled by 23 June 2026 under existing placement capacity. Tranche 2, comprising approximately 175.5 million shares raising around A$17.6 million, awaits shareholder approval at an Extraordinary General Meeting scheduled for 10 July 2026. The offer price represents a 9.1% discount to the last closing price and a 3.5% discount to the recent five-day volume weighted average price, reflecting a strategic pricing decision to entice strong investor participation.

Backing from Hancock Prospecting Reinforces Confidence

Hancock Prospecting’s sizeable commitment signals robust confidence in Araxá’s potential. Gina Rinehart, Hancock’s Executive Chairman, expressed optimism about the project’s role in the global critical minerals supply chain. This backing is particularly noteworthy given Hancock’s influential status in the mining sector and suggests alignment on the project's strategic importance amid rising demand for critical minerals.

Advancing Feasibility and Investment Decisions

The newly raised capital will underpin accelerated feasibility studies and progress towards a financial investment decision for Araxá. The project’s appeal lies in its world-class resource, featuring high-grade mineralisation starting from surface and advantageous logistics within an established mining region in Minas Gerais, Brazil. This positions Araxá well to meet growing global demand as governments and private enterprises race to secure critical minerals supply chains.

St George’s Executive Chairman John Prineas highlighted the compelling development potential and the opportunity to fast-track the project’s advancement. The company’s recent technical work, including successful beneficiation testwork yielding high-grade niobium and rare earth concentrates, provides a solid foundation for these next steps.

Next Steps and Shareholder Engagement

While Tranche 1 proceeds without delay, the completion of Tranche 2 hinges on shareholder approval, introducing a degree of uncertainty around the full capital raise. The upcoming EGM on 10 July 2026 will be a critical juncture for the company’s funding trajectory. Investors will be watching closely for the outcome, which will dictate the pace at which St George can fully capitalise on the Araxá opportunity.