St George Mining Limited (ASX: SGQ) has announced a successful capital raise of $20 million through a share placement to institutional and sophisticated investors.
The company will issue one billion ordinary shares at $0.02 per share, with subscribers receiving one free attaching option for every two shares, exercisable at $0.04.
The funds will be primarily used for the acquisition, exploration, and working capital requirements of the Araxá niobium-REE project in Minas Gerais, Brazil.
This project is strategically located adjacent to CBMM’s industry-leading niobium mine.
St George has extended the timeline for completing the Araxá project acquisition, originally agreed upon in August 2024, to March 15, 2025.
A general meeting of shareholders is scheduled for February 2025 to seek approval for the capital raising and other acquisition-related payments.
Executive Chairman John Prineas expressed enthusiasm about the strong investor interest in the placement, stating: “We are delighted to announce that funding for the acquisition of the Araxá project has been arranged, with very strong investor interest for our $20 million raise.”
The Araxá project is described as a de-risked, world-class asset with confirmed high-grade niobium and REE mineralisation.
Over 500 drill intercepts have shown high-grade niobium (>1% Nb2O5) and rare earths, with grades reaching up to 8% Nb2O5 and 33% TREO.
Prineas highlighted the company’s recent activities, including signing a cooperation agreement with the State of Minas Gerais for expedited project approvals, forming partnerships for potential downstream processing, and assembling an experienced in-country team.
The successful capital raise replaces an earlier equity raising proposal and is seen as recognition of the Araxá project’s advanced status and potential.
St George Mining plans to commence drilling at Araxá once the acquisition is finalised, which is expected in Q1 2025.
