St George Mining (ASX:SGQ) has signed a memorandum of understanding (MoU) with the Liaoning Fangda Group regarding the development of the Araxá Niobium-Rare Earth Project in Brazil.
Under the MoU, both companies will consider marketing, offtake, and financing opportunities with the aim of progressing Araxá through feasibility studies and a financial investment decision for mine development.
The companies will negotiate a potential binding partnership agreement within nine months of signing the MoU, which was signed on 15 January 2025.
Under a potential offtake agreement, which will have a five-year term, Fangda will be granted exclusive rights to acquire 20% of niobium products from Araxá.
Executive Chairman John Prineas says the relationship with Fangda is another key milestone in de-risking Araxá.
“With extensive near-surface niobium mineralisation already confirmed by historical drilling at the Araxá Project — including more than 500 intercepts of more than 1% niobium pentoxide — as well as access to existing regional infrastructure, St George is continuing to position itself to be the next global player in niobium,” Prineas says.
“St George’s ability to attract global giants like Fangda speaks volumes to the potential of the Araxá Project and also recognises the high-performance in-country management established by St George to drive project development.”
St George, which has a market capitalisation of $28.48 million, says the MoU with Fangda creates a framework for the parties to collaborate. The company notes there is no financial obligation on St George under the MoU.
In August 2024, St George entered into an agreement with Itafos Araxá Mineracao E Fertilizantes to acquire the Araxá Project, which is expected to be completed this quarter.
In anticipation, St George has assembled an experienced team in Brazil to oversee the first stage of on-the-ground exploration work and development studies.
The Liaoning Fangda Group is a large steelmaker that is in the process of expanding steel production capacity from 20 million tonnes per year to 50tpa.
St George Mining is a critical minerals-focused explorer and developer with assets in Brazil and Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: St George Mining
