St George raises $5M to boost Brazilian rare earths drilling program

St George Mining has secured $5 million through a strategic placement of 131.6 million shares at $0.038 each, a 13.1 per cent premium to the 30-day volume-weighted average price, to accelerate exploration at its Araxá project in Brazil. 

The funds, raised from European strategic investors and existing shareholders, will enable St George to deploy three diamond drill rigs, up from one, to conduct more than 9000 metres of drilling. The program will start within weeks. 

It aims to expand the project’s already globally significant maiden rare earths and niobium resource, announced on April 1 as 40.6 million tonnes at 4.13 per cent total rare earths oxides (TREO) and 41.2Mt at 0.68 per cent niobium pentoxide. The resource remains open in all directions.

The expanded drilling at Araxá will focus on extending the resource along strike to the west, north and east, as well as testing deeper mineralisation, while converting existing inferred resources to the indicated category. 

With five rigs now operating, including auger and reverse circulation rigs already on-site, St George anticipates a steady flow of assay results and drilling updates throughout the second half of 2025. 

The company is also interpreting recent airborne magnetic survey data to potentially increase its inventory of drilling targets. 

Located adjacent to Companhia Brasileira de Metalurgia e Mineração’s (CBMM) world-leading niobium operations, Araxá benefits from established infrastructure and a skilled workforce. 

It has high-grade niobium and rare earths mineralisation confirmed from surface, including intercepts of up to 8 per cent niobium pentoxide and 33 per cent TREO.

Beyond exploration, St George is pursuing downstream partnerships, particularly in the United States, where demand for ex-China rare earths supply is surging, as evidenced by the US Department of Defence and Apple’s recent huge investments in MP Materials, which owns America’s only producing rare earths mine. 

St George Mining executive chairman John Prineas said, “We are delighted to secure $5 million at a 13.1 per cent premium to our 30-day VWAP, fully funding an upscaled diamond drill program at Araxá with minimal dilution. This placement recognises Araxá’s world-class rare earths and niobium resource, with high-grade mineralisation from surface and excellent logistics in an established mining region.” 

Prineas said that the company’s major drilling, metallurgical testwork and development studies aim to expand the resource and fast-track permitting to attract strong investor interest amid global demand for new rare earths supply chains.

The company has joined Brazil’s MAGBRAS Initiative to support a domestic rare earths supply chain, including magnet production and is engaging with US-based entities for potential processing partnerships. 

These efforts align with Araxá’s strategic proximity to the US and its potential to supply critical materials for magnets used in technology and defence applications.

St George’s robust financials and experienced in-country team, backed by government support for expedited approvals, position Araxá as a de-risked, high-potential project. 

With a solid leg-up afforded by the placement funds, St George is well-equipped to drive rapid resource growth and advance development studies.

St George is set to capitalise on Araxá’s favourable geography, modern nearby infrastructure and massive resource potential to deliver value through focused exploration and strategic partnerships. 

The company’s clear path forward offers it a rare position in the region to meet the inevitable growing global demand for critical minerals and their downstream products.

Contact: matt.birney@businessnews.com.au