$8m investment fast-tracks St George Brazilian | Australian Markets

St George Mining has secured the backing of main international mining engineering firm Shandong Xinhai Mining to fast-track the development of its high-grade Araxá niobium-rare earths project in Brazil.

The company has fashioned a main strategic partnership with the engineering and construction providers giant via an settlement which incorporates an engineering, procurement and construction (EPC) contract over Araxá and an $8 million investment by Xinhai into St George.

The $8m investment will contribute to St George’s $20m equity raising, supporting the completion of the 100 per cent acquisition of Araxá.

The businesses’ collaboration marks a substantial milestone for St George in de-risking its flagship project and accelerating its now clear pathway to manufacturing.

Beneath the binding memorandum of understanding, Xinhai will present St George with complete mine development experience, together with metallurgical testing and mineral processing optimisation, plant design and construction, project development and non-dilutive funding procurement.

Xinhai has efficiently delivered more than 500 EPC contracts in more than 100 international locations. The company’s confidence in St George will see it retain unique distribution and advertising and marketing rights for 80 per cent of Araxá’s niobium provide in China.

The investment additional aligns Xinhai’s pursuits with its own long-term success, guaranteeing each events are dedicated to fast-tracking the project’s development.

Xinhai has an spectacular monitor file of delivering high-quality processing plants in expedited timeframes and with aggressive pricing. We additionally welcome Xinhai as a new shareholder in St George, which is able to additional align our respective pursuits in advancing the Araxá project to a profitable working mine.

Prineas stated he couldn’t overstate St George’s capacity to draw industry-leading companions resembling Xinhai and that the deal mirrored Araxá’s potential to be the following main uncommon earths producer out of Brazil.

The Araxá project, within the Brazilian State of Minas Gerais, lies within the famend Barreiro carbonatite complicated. The complicated accommodates a world-class uncommon earths orebody operated by neighbour Companhia Brasileira de Metalurgia e Mineracao – the world’s largest producer of niobium.

St George’s project has niobium grades up to a staggering 8 per cent niobium oxide and complete uncommon earth oxide grades up to 33pc. St George says it’s an apparent candidate to be Brazil’s subsequent uncommon earths developer owing to its low-cost, open pittable mineralisation and the chance of expedited allowing approvals within the mining-friendly jurisdiction.

The company’s project has in depth near-surface niobium mineralisation already confirmed from historic drilling, together with more than 500 intercepts of more than 1pc niobium.

Niobium is registered on the vital mineral lists worldwide and is important for producing high-strength metal. It’s essential in establishing of infrastructure, bridges and autos, and renewable applied sciences resembling lithium-ion batteries.

With Xinhai now on board, St George is quickly advancing in direction of finalising its acquisition of Araxá, anticipated by the tip of this quarter. The partnership checks a main box within the project’s funding and gives a clear pathway to construction and manufacturing, which seemed to be an uphill battle for the rising developer in direction of the back half of 2024.

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