St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF) has secured firm commitments to raise A$60 million, strengthening its balance sheet as it advances the high-grade Araxá rare earths and niobium project in Minas Gerais, Brazil.
The company will raise the funds through a two-tranche institutional placement of 600 million new fully paid ordinary shares priced at A$0.10 per share.
The placement received support from existing institutional investors, including St George’s largest shareholder Hancock Prospecting Pty Ltd, which committed to subscribe for A$20 million, or 200 million new shares.
Following completion of the placement, Hancock is expected to hold about 10.5% of St George.
Funding to support Araxá development
St George said the new funds would be used to advance development of the Araxá Project, which hosts high-grade rare earth and niobium mineralisation.
The company is positioning Araxá as a potential critical minerals development opportunity at a time of increasing government and private sector interest in building secure supply chains for rare earths and other strategic materials.
Executive chairman John Prineas said the funding would support the company’s plans to move the project through feasibility work and toward a financial investment decision.
“We are delighted with the strong support received from new and existing institutional investors who recognise the compelling development potential of our Araxá Project,” Prineas said.
“The world-class resource at Araxá has potential to be developed under an accelerated timeline – with high-grade mineralisation starting from surface and favourable project logistics in an established mining region.”
Hancock backs critical minerals strategy
Hancock Prospecting executive chairman Gina Rinehart said the company was pleased to support St George as its largest shareholder.
“Hancock Prospecting is pleased to be able to support St George as the largest shareholder in the company with this additional investment and looks forward to seeing the Araxá Project develop into an important part of the global critical minerals supply chain,” Rinehart said.
The investment adds to Hancock’s exposure to the company as St George progresses work at Araxá, which sits in an established mining region of Brazil.
Placement structure
The placement will be completed in 2 tranches.
Under tranche 1, St George will issue about 424.5 million new shares at A$0.10 each to raise around A$42.4 million before costs. These shares will be issued under the company’s existing placement capacity under ASX Listing Rule 7.1.
Settlement of tranche 1 is expected on Tuesday, 23 June 2026, with the new shares to be issued on Wednesday, 24 June 2026.
Tranche 2 remains subject to shareholder approval and will involve the issue of around 175.5 million new shares at the same price, raising about A$17.6 million before costs.
The offer price represents a 9.1% discount to St George’s last closing price of A$0.11 and a 3.5% discount to the company’s 5-day volume weighted average price of A$0.104 per share up to and including Friday, 12 June 2026.
New shares issued under the placement will rank equally with existing fully paid ordinary shares.
Advisers appointed
Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Ltd and Jett Capital Advisors acted as joint lead managers and joint bookrunners to the placement.
Macquarie Capital (Australia) Ltd acted as financial adviser to St George.
What's ahead
St George will use the proceeds to accelerate feasibility study work and other development activities at Araxá as it works toward a potential financial investment decision.
The company will also seek shareholder approval for tranche 2 of the placement at an extraordinary general meeting scheduled for 10 July 2026.
If approved, settlement of tranche 2 is expected to occur shortly after the meeting.
About the Araxá Project
The Araxá Project is a de-risked project with world-class potential in Minas Gerais, Brazil, located adjacent to CBMM’s world-leading niobium mining operations.
St George acquired the Project in February 2025.
Extensive high-grade niobium and REE mineralisation at the Araxá Project has been confirmed by past drilling.
High-grade mineralisation commences from surface, with more than 500 intercepts of high-grade niobium (>1% Nb2O5) with grades up to 8% Nb₂O₅ plus rare earths with grades up to 33% TREO.
The Araxá Project is located within the Barreiro Carbonatite complex – a 5km wide carbonatite hosting hard-rock niobium, REE and phosphate mineralisation. Surrounded by world-class mines – CBMM’s Araxá niobium mine (896 Mt @ 1.49% Nb2O5) and Mosaic’s Araxá phosphate mine (519 Mt @ 13.4% P2O5 )1 are also hosted in the Barreiro Carbonatite.
The carbonatite is the world’s ‘dress circle’ location for niobium, producing ~80% of global supply.
The Project is located 6km from Araxá city with access to transport infrastructure, low cost water and electricity (hydro) and an experienced mining workforce.