St George Mining enters binding agreement to acquire Araxa niobium project

St George Mining Limited (ASX: $SGQ) has announced the entry into a binding conditional agreement to acquire all the issued capital of Itafos Araxá Mineracao E Fertilizantes S.A, which owns 100% of the advanced niobium-REE Araxá Project in Minas Gerais, Brazil. The acquisition, subject to certain conditions, including a capital raise of at least AUD$20,000,000, is set to propel St George onto the global niobium stage.

Executive Chairman's perspective on the Araxa Project acquisition

The Araxa Project is located in the world's 'dress circle' for niobium production and presents a tremendous opportunity for St George to become a global player in the niobium market. Extensive high-grade niobium mineralisation has already been discovered at the Project, providing a strong foundation for St George to quickly progress to potential resource definition. In addition to niobium, high-grade rare earths mineralisation has been confirmed by drilling over a widespread area. The high-grade mineralisation commences at surface and is open in all directions, with excellent prospects to substantially expand the known mineralised footprint. Together with abundant high-grade mineralisation, the Project's strength is its location in an established mining district with potential to access infrastructure and labour - factors that are favourable for near-term development potential.

Outlook and forward work plan for St George Mining

St George Mining's acquisition of the Araxa Project in Brazil marks a significant step towards establishing the company as a global player in the niobium and rare earths sector. The Project's enviable location, adjacent to the world's leading niobium mine, and the historical drilling results indicating extensive high-grade mineralisation, provide a strong foundation for St George to define a globally significant niobium-REE resource. The company's forward work plan includes an inaugural drill program of up to 5,000m of diamond drilling, aimed at confirming historical drill results, exploring along strike of known high-grade mineralisation, and testing the depth extent of mineralisation. Results from the new drilling, together with historical results, will be used to complete a mineral resource estimate in accordance with the 2012 JORC Code, targeted for H1 2025. The acquisition, coupled with the firm commitments received for a $21.25 million fund raising, positions St George to leverage the advanced status of the Project and continue on the path to being a globally significant player in the niobium and rare earths sector.