St George Mining raises $3m to drive exploration at existing projects

St George Mining raises $3m to fund exploration at existing projects
Company in the process of finalising acquisition of Brazilian niobium play
Further cap raising planned to support Araxá acquisition

Special Report: St George Mining has secured firm commitments from institutional, sophisticated and professional investors to raise $3m via a placement to fund exploration and for working capital.

A drill program is planned for the company’s Mt Alexander project in WA to follow-up lithium and gold targets identified from surface sampling.

Notably, the pegmatites outcropping at the project are part of the same system that hosts the major nearby lithium discovery by Delta Lithium (ASX:DLI) at the 14.6Mt at 1.2% Li2O Mt Ida deposit.

The placement comprises 150,000,000 ordinary shares at 2c per share and 75,000,000 options (one free-attaching option for every two shares subscribed for and issued), with an exercise price of 4c.

“We thank investors for their support in this placement which will boost working capital and assist to progress our existing projects,” St George Mining (ASX:SGQ) executive chairman John Prineas said.

Araxá acquisition almost complete

The company is also working towards finalising arrangements for the acquisition of the high-grade Araxá Niobium-REE project in Minas Gerais, Brazil with a further capital raising being planned to support that acquisition.

Araxá is immediately adjacent to the CBMM project, the world’s largest producer of niobium, and has access to infrastructure and labour.

And historical exploration has already discovered extensive high-grade niobium and REE mineralisation, with drilling returning >500 intercepts of +1% niobium with ultra-high grades of up to 8% niobium and 33% total rare earth oxides.

“We are also excited to be progressing arrangements for the proposed acquisition of the Araxá Project in Brazil,” Prineas said.

“We expect to close that acquisition in Q1 2025 with further news on final arrangements expected soon.”

In October, the company reached a memorandum of understanding with Brazil’s State of Minas Gerais to potentially fast track approvals for the project.

SGQ also recently signed a MoU with global trading house SKI Hong Kong to support development of the project by establishing the framework for collaboration on marketing, offtake and financing aspects of the project with the goal of progressing feasibility studies for a mine development.

This article was developed in collaboration with St George Mining, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.