St George Mining Ltd (ASX:SGQ) has paid the second and third deferred cash instalments to Itafos Inc. for the Araxá Rare Earths and Niobium Project in Brazil, settling a combined US$11 million ahead of schedule.
The early payment extinguishes all remaining deferred consideration under the sale agreement. Itafos will now release all security over the project and related group assets, confirming St George’s unencumbered, 100% ownership of Araxá.
St George said fast-tracking the payments — originally US$6 million due at end-November 2025 and US$5 million due in late August 2026 — was a prudent use of funds from its strongly supported A$50 million institutional placement completed in October 2025, part of a broader A$72.5 million equity raising.
The money will be used to advance Araxá towards a Final Investment Decision on mine development, with the early settlement underscoring the company’s commitment to progressing this globally significant rare earths and niobium asset.
“The completion of these final payments to Itafos marks the successful conclusion of what has been a highly strategic and transformative acquisition for St George," St George Mining’s executive chairman John Prineas said.
“We now hold full and unencumbered ownership of the Araxá Project — a world-class rare earths and niobium asset located in the heart of Brazil’s globally dominant niobium-producing district — and well-funded to advance this tremendous development opportunity towards a Final Investment Decision.
“This acquisition has positioned St George as a leading participant in the global critical minerals supply chain. With ownership fully consolidated, we are now focused on accelerating development and unlocking the significant value potential of this exceptional project.”
Strong diamond drill intercept
Meanwhile, work continues at Araxá, with St George recently delivering another strong diamond drill intercept at its 100%-owned Araxá rare earths–niobium project in Minas Gerais, Brazil, indicating a material extension of mineralisation to the west of the current resource and highlighting potential for resource growth.
Read more: St George Mining hits 87.7m at 2.95% TREO in western step-out at Araxá
Araxá currently hosts a JORC-compliant MRE of 40.6 million tonnes at 4.13% TREO, ranking it as the largest and highest-grade carbonatite-hosted rare earth resource in South America and the second-highest-grade rare earth resource in the Western world. The latest drilling is designed to test the mineralised body’s lateral extent and tighten geological definition ahead of future resource updates.