St George Mining (ASX: SGQ) has successfully completed the acquisition of Itafos Araxá Mineracao E Fertilizantes S.A, securing 100 per cent ownership of the advanced Araxá niobium-rare earth elements (REE) project in Minas Gerais, Brazil.
This strategic move positions the Perth-based company at the forefront of the world’s leading niobium-producing district.
The Araxá project boasts a prime location adjacent to the niobium mine operated by CBMM, which accounts for approximately 80 per cent of global niobium production.
Situated in an established mining district, the project benefits from existing infrastructure, a proven route to market, and a readily available skilled workforce, providing a strong foundation for expedited development.
St George Mining has successfully raised $20 million, fully funding its 2025 drilling and development studies at the Araxá project.
The company’s immediate plans include:
- Commencing a 5,000m drill program in March 2025
- Targeting a maiden JORC-compliant Mineral Resource Estimate for March 2025
- Conducting metallurgical test work
- Producing sample niobium and REE products for potential off-take parties
- Completing environmental, heritage, and geotechnical studies
- Initiating feasibility study work
John Prineas, St George Mining’s Executive Chairman, hailed the acquisition as a landmark moment for the company.
“The high-grade niobium-REE Araxá project represents a tremendous opportunity for St George to potentially become a globally significant player in the niobium sector,” Prineas stated.
Prineas emphasised the project’s de-risked status, citing extensive high-grade niobium and REE mineralisation confirmed by historical drilling, the region’s long history of commercial niobium production, and access to existing infrastructure and an experienced workforce.
The company has assembled an experienced in-country management team with decades of combined experience in niobium mining and mineral production at Araxá.
Additionally, St George has established a relationship with the Minas Gerais State Government to support expedited project approvals.
As part of the acquisition, Itafos Inc (TSX-V: IFOS), a global fertiliser company and the vendor of the Araxá project, has become a substantial shareholder in St George with a 10 per cent stake.
With the acquisition now complete, St George Mining is poised to accelerate the development of the Araxá project, aiming to unlock its world-class potential in the rapidly growing niobium and rare earth elements market.
