St George Mining (ASX:SGQ) has confirmed it’s facing more delays than it expected in acquiring a Brazilian niobium-REE project called Araxá.
Through a 100% issue of capital in a second party called Itafos Araxá Mineracao E Fertilizantes S.A – a subsidiary of parent company Itafos designed to hold the Araxá asset.
“While the key terms of the sale agreement are expected to remain unchanged,” St George wrote on Tuesday, a number of small amendments are currently the topic of negotiation.
These small changes have pushed out the expected completion date to Q1CY25.
What those changes were exactly, however, was not clarified. Company chief John Prineas pointed to a recent MOU execution with the Brazilian State of Minas Gerais government that seeks to confirm authorities will help expedite approvals for the project, once it’s in St George’s hands.
“Even though it is taking us longer to finalise the acquisition of the Araxá Project it has done nothing to curb our enthusiasm for what is an excellent opportunity to acquire a significant niobium and REE project,” Prineas commentated.
“While we progress towards completion, we have been busy implementing several initiatives to ensure a strong platform from which to launch our on-the-ground work at the project once we take control.”
The company in August appointed tow Brazilian-based executives with former experience at CBMM – the world’s largest niobium producer. Brazil has long dominated market share for the critical mineral.
SGQ last traded at 2.5cps.
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