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St George Mining (ASX:SGQ) has notched up commitments for a $5 million capital raise to accelerate the development of its flagship Araxá Project in Minas Gerais, Brazil – a significant leap forward for the rare earths project.
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The placement, comprising 131.6 million new shares at 3.8cps, was issued at a 13.1% premium to the 30-day volume weighted average price (VWAP) of 3.3cps as at July 22.
The offer attracted strong interest from existing shareholders and new strategic European investors, underscoring “growing confidence in the project’s potential.”
The funds will directly support an aggressive exploration and development campaign at Araxá, which hosts a JORC-compliant high-grade rare earths and niobium resource, announced in April 2025. Mineralisation at the site is open in all directions, offering significant upside potential.
Executive chairman John Prineas described the raise as a validation of St George’s recent progress at Araxá: “We are delighted to secure additional funds at a premium… ensuring that we are fully funded for an upscaled diamond drill program with minimum dilution to existing shareholders.”
As part of the expanded work program, St George will now deploy three diamond drill rigs, up from one originally planned before this capital raise, in addition to the auger and reverse circulation rigs already on site.
Over 9,000 metres of diamond drilling will commence within the next two weeks, targeting both resource expansion and infill drilling to upgrade inferred resources to indicated status.
The placement will also fund key value-adding activities, including metallurgical testwork to define the project’s processing flowsheet, development studies to support environmental approvals and fast-track permitting, and interpretation of recent airborne magnetic survey results to refine additional drill targets.
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Mr Prineas added: “Araxá’s favourable geology, surface mineralisation, and location in an established mining region with strong infrastructure are attracting substantial global interest. We believe the project can be developed under an accelerated timeline – something investors clearly want to be part of.”
SGX has been up 2.5% in Friday afternoon trade, at 4cps.
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