St George shareholders seal the Araxá niobium deal

St George Mining passes all motions for acquisition of the Araxá niobium-REE project
Company has its mandate to unlock world-class potential next to the world’s preeminent niobium mine
5000m diamond drill campaign and maiden resource estimation now set to begin

Special Report: St George Mining shareholders have voted overwhelmingly to complete acquisition of the Araxá niobium and rare earth project in Brazil.

With all resolutions pertaining to the acquisition now approved, St George Mining (ASX:SGQ) has taken the general meeting of shareholders as a mandate to unlock the project’s world class potential.

That world class potential is clear in sight next to a mine which currently produces an ~80% bulk of all niobium production.

It seems other producers haven’t clocked in to the scale of Companhia Brasileira de Metalurgia e Mineração’s (CBMM’s) Araxá, and at its own neighbouring project, SGQ is seeing extensive niobium and rare earths from surface and a considerably de-risked asset.

St George executive chairman John Prineas said the high-grade niobium and rare earth project represents an enormous opportunity to become a globally significant player in the sector.

“The project is in the world’s ‘dress circle’ for niobium production, where the world-leader CBMM has been producing niobium products for more than 40 years,” Prineas said.

“This enviable location provides St George with a ready platform to accelerate development of the project.”

Prineas added that it has already assembled a highly experienced in-country team, including leading experts in niobium mining and processing to drive exploration and development studies.

“We are delighted that our shareholders – as well as new investors – have recognised the outstanding opportunity that the Araxá Project presents for St George to create substantial, long-term value.

“We also appreciate shareholders’ patience as we worked hard to build the value of the Araxá acquisition since we first announced our plans last year.

“With on-ground work – including drilling and metallurgical testwork – set to commence as soon as we complete the formalities of the acquisition, we look forward to providing shareholders with exciting news as we move quickly to prove up the development potential at Araxá.”

Niobium neighbours

While still cast in the shadow of a neighbouring behemoth, St George has made multiple high-profile compacts to put itself on the best path to development.

The company has entered deals and partnerships with scientific agencies, steelmakers, mining service providers, engineering firms, metals traders, government departments and niobium experts formerly from CBMM itself..

The company already had firm commitments for a $20m raise to finalise the acquisition and get cracking on up to 5000m of diamond drilling and a maiden resource estimate.

An MoU with its host state’s Invest Minas agency offers fast-track approvals for the project, and SGQ seems to believe that production could be a relatively near-term proposition.