St George Mining (ASX:SGQ) has received firm commitments to raise $60 million through a two-tranche institutional placement to accelerate the development of its ‘high-grade’ Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil.
Under the placement, St George will issue 600 million new shares at $0.10 each, representing a 9.1% discount to the last close of $0.11 and a 3.5% discount to the five-day volume-weighted average price of $0.10.
Major backer Hancock Prospecting has committed to subscribe for $20 million worth of shares, maintaining its position as the company’s largest shareholder with an approximate 10.5% post-completion stake.
The placement will roll out across two stages, with tranche one raising approximately $42.4 million through the issuance of 424.5 million shares under existing placement capacity. Settlement is expected on 23 June, with shares issued on 24 June.
Meanwhile, tranche two will raise around $17.6 million through 175.5 million shares, subject to shareholder approval at an extraordinary general meeting scheduled for 10 July.
Canaccord Genuity Australia and Jett Capital Advisors acted as joint lead managers and joint bookrunners for this placement, while Macquarie Capital Australia served as financial adviser.
Executive Chairman John Prineas says the company is “delighted” with the support received from new and institutional investors.
“The resource at Araxá has potential to be developed under an accelerated timeline — with high-grade mineralisation starting from surface and favourable project logistics in an established mining region — at a time when both governments and private enterprises around the world are rushing to establish new supply chains for critical minerals products,” Prineas said.
“The newly secured funding will bolster and accelerate St George’s program of advancing the Araxá project through feasibility study work and a financial investment decision.”
St George Mining is a critical minerals exploration and development focused on building a globally significant portfolio of metals essential for the clean energy transition.
Write to Paula Fabe at Mining.com.au
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