St George Mining bolsters its Araxá niobium and rare earths project with a $60 million capital raise, appoints Worley as technical adviser, and reports strong metallurgical test results underpinning its dual commodity strategy.
- Worley appointed feasibility adviser for Araxá
- High-grade niobium and rare earth concentrates produced
- Drilling confirms extensive, thick mineralisation from surface
- A$60 million capital raise completed, Hancock boosts stake to 10.3%
- Lithium Star JV restructured with Amperex Technology investment
Worley Joins Araxá Development Team
St George Mining (ASX:SGQ) has tapped Worley Engenharia Ltda, the Brazilian arm of ASX-listed Worley Limited (ASX:WOR), as its feasibility technical adviser for the Araxá niobium and rare earths project. With over six decades of engineering and project management experience in Brazil's resources sector, Worley will provide a comprehensive suite of services spanning metallurgical and process engineering, feasibility studies, mine planning, and plant construction. This partnership leverages Worley’s global expertise alongside St George’s seasoned Brazilian leadership team, which includes former CBMM executives intimately familiar with the Araxá region’s world-class mineralisation.
Strong Metallurgical Testwork Validates Dual Commodity Potential
Drilling Expands Resource Footprint and Confirms Exceptional Continuity
Drilling continues to reveal thick, continuous intervals of high-grade mineralisation from surface, reinforcing Araxá’s potential as a large-scale open-pit operation. Standout intercepts include 199.5 metres at 2.86% TREO and 0.44% Nb₂O₅ from surface (hole AXDD120), alongside other significant hits such as 121.55 metres at 3.47% TREO and 0.39% Nb₂O₅ (AXDD127). These results extend the known mineralised footprint by up to 200 metres north of the current resource and improve confidence in grade continuity within the existing Mineral Resource Estimate (MRE). The drilling campaign remains ongoing, with the system open in all directions including at depth, highlighting considerable upside potential for resource growth. These findings build on recent record intercepts and support upcoming resource updates and development studies planned for later in 2026.
Capital Raise and Strategic Shareholding Bolster Financial Position
St George successfully completed a A$60 million capital raising through a two-tranche placement priced at A$0.10 per share. The placement attracted major North American, European, and local institutional investors, with Hancock Prospecting Pty Ltd increasing its stake to 10.3% by subscribing for 200 million shares. This capital injection lifts the company’s cash reserves to approximately A$98 million, providing a solid financial foundation to advance feasibility studies and project development. Additionally, the company saw a healthy exercise of listed and unlisted options during the quarter, further supporting its capital base.
Lithium Star Restructured with Battery Giant Investment
In a strategic move to consolidate its lithium exploration efforts, St George acquired full ownership of Lithium Star Pty Ltd, its Western Australian lithium-focused subsidiary. This followed an agreement with Amperex Technology Limited (ATL), the world’s leading lithium-ion battery manufacturer, which exchanged its 10% JV stake for 12.5 million St George shares at a premium price of A$0.16 per share. The restructure, approved by shareholders in July, aligns St George’s lithium assets under one roof while giving ATL exposure to St George’s broader rare earths and niobium portfolio, including potential offtake rights. This partnership reflects growing industry interest in securing supply chains for critical battery materials.
Bottom Line?
St George’s combination of strong metallurgical results, resource expansion, and a robust capital position sets the stage for critical feasibility milestones in the coming months.
Questions in the middle?
- How will Worley’s involvement accelerate the Araxá feasibility timeline and capital expenditure estimates?
- To what extent can further metallurgical optimisation improve rare earth and niobium recoveries beyond current testwork?
- What impact will the Lithium Star restructure and ATL’s strategic investment have on St George’s lithium exploration focus?