St George Mining Ltd (ASX:SGQ) has secured A$72.5 million via equity placements, including a strategic investment by Hancock Prospecting Pty Ltd, to progress the Araxá rare earths–niobium project in Brazil towards a Final Investment Decision (FID).
The raising comprises a strongly supported institutional placement of 500,000,000 new shares at A$0.10 to major North American, European and local funds for A$50 million, and a separate A$22.5 million placement of 225,000,000 shares at A$0.10 to Hancock Prospecting, subject to shareholder approval.
Proceeds will fund an upgrade of the Mineral Resource Estimate (MRE), project permitting, metallurgical test work including pilot plant development, feasibility studies, and deferred cash consideration to Itafos Inc.
“We are delighted with the strong support received from local and overseas institutional investors who recognise the enormous potential of our high-grade rare earths and niobium project at Araxá,” St George Mining executive chairman John Prineas said.
“We are also very pleased that Hancock Prospecting has chosen to increase its existing shareholding in St George and emerge as a substantial shareholder," he added. "Hancock Prospecting is a company with significant experience in recognising the value in strategic commodities and backing successful critical minerals companies including MP Materials and Lynas Corporation — as well as having significant project execution and delivery experience for St George to leverage off in the future.
Araxá hosts niobium and several rare earth elements, including samarium, lutetium, terbium, dysprosium and gadolinium — minerals identified by the US Department of the Interior as top-tier critical minerals. The company notes US supply-chain sensitivity for niobium and points to China’s October 9, 2025, announcement of comprehensive export controls across the rare earths supply chain as a supportive backdrop for near-term development.
Potential GDP loss from foreign trade disruptions to minerals (Source: Visual Capitalist).
It is reported as the largest and highest-grade carbonatite-hosted rare earth element (REE) resource in South America, with a JORC-compliant MRE of 40.6 million tonnes at 4.13% total rare earth oxides (TREO). A major drill program is underway to expand and upgrade the resource.
“The world-class resource at Araxá and its favourable project logistics — with high-grade mineralisation starting from surface and a location in an established Tier 1 mining region with ready access to transport infrastructure, renewable power and workforce — is attracting substantial investor interest at a time when there is unprecedented action globally by both governments and private enterprise to establish new and secure supply chains for critical minerals products,” Prineas said.
“We believe the Araxá Project has the potential to be developed under an accelerated timeline to become one of the few next-generation rare earths and niobium producers worldwide, something investors are wanting to be part of. The new funding will bolster St George’s program of advancing the Araxá Project through feasibility study work and towards a financial investment decision," he added.
“These workstreams complement an aggressive drilling program underway at the Araxá Project that is designed to expand and upgrade the already world-scale Mineral Resource Estimate (“MRE”).
“We thank existing and new shareholders for their support in St George and recognition of our efforts to deliver significant, sustained value from the Araxá Project. We are excited about providing more updates as we advance this truly unique critical minerals opportunity.”
Araxá’s high-grade rare earths and niobium: Strategic importance
St George’s Araxá Project in Brazil hosts a globally significant MRE for rare earths and niobium, positioning the asset as a potential pillar for resilient, non-Chinese critical-minerals supply chains.
The MRE comprises 40.6 million tonnes at 4.13% total rare earth oxides (TREO) and 41.2 million tonnes at 0.68% niobium pentoxide (Nb2O5). The hard-rock carbonatite style mirrors the geology at the two major rare earths mines outside China — MP Materials’ Mountain Pass (California) and Lynas Rare Earths’ Mt Weld (Western Australia).
Araxá carries a high neodymium and praseodymium (NdPr) grade of 7,800 parts per million (0.78%), with 320,000 tonnes of contained NdPr, underscoring potential to supply permanent-magnet manufacturers in Brazil and abroad. The project also contains substantial quantities of other rare earth elements — samarium, lutetium, terbium and gadolinium — all listed among the Top 10 critical minerals by the United States Department of the Interior. Niobium is likewise on this Top 10 list, and any potential loss of foreign niobium supply is assessed as the second-largest gross domestic product (GDP) impact among critical minerals (see figure below).
US Top 10 Critical Minerals.
Reflecting this strategic context, the United States has expressly excluded niobium and rare earths imported for processing from increased tariffs.
St George has a strategic alliance with REAlloys, a United States-based rare earths processor and magnet-materials supplier to United States government agencies, and is engaging potential United States partners for niobium offtake from Araxá.
Read more: St George Mining strikes US rare earths deal
St George cements ownership of Araxá, unveils maiden resource
St George acquired 100% of the Araxá Project on February 27, 2025, securing a potentially world-class rare earths and niobium asset in Minas Gerais, Brazil, adjacent to CBMM’s leading niobium operations.
The Araxá district’s long history of commercial niobium production offers established infrastructure and a skilled workforce. St George has negotiated government support to expedite approvals, assembled an experienced in-country team, and built relationships with key Brazilian parties and authorities to advance exploration and development studies.
On April 1, 2025, St George announced a maiden Mineral Resource Estimate (MRE) for Araxá, highlighting a globally significant rare earths and niobium resource, as outlined below:
