St George Mining (ASX:SGQ) has entered into an agreement with two Brazilian scientific agencies to optimise niobium and rare earths downstream processing and production from the Araxá Project in Minas Gerais, Brazil.
Under the technical collaboration agreement with EMBRAPII and SENAI, studies will be conducted of the Araxá niobium and rare earths mineralisation with the aim of developing a new and sustainable process to maximise the recovery of the minerals.
St George, which has a market capitalisation of $26 million, says the specific focus of the co-venture is to improve the technical knowledge on separating rare earths from niobium to produce commercial rare earths and niobium products from mineralisation at Araxá.
All of the companies will collaborate to develop a sustainable process for producing ferroniobium and rare earths products.
The companies will collaborate via technical meetings, research studies, and testworks to provide specialised technological services. The ore samples used in the studies will be provided by St George from Araxá.
Executive Chairman John Prineas says the agreement is a key step to support the development of an optimum processing flowsheet for Araxá.
“We are delighted to have finalised this agreement with SENAI and EMBRAPII which has the potential to provide a major breakthrough in the efficiency and sustainability of mining and processing activities at Araxá,” Prineas says.
“Signing of this technical collaboration agreement is testament not just to Araxá’s potential but also the quality and experience of the in-country team that St George has assembled to drive the project forward.”
On 6 August 2024, St George entered into an agreement with the owner of the Araxá Project, Itafos Araxá Mineracao E Fertilizantes, whereby privately held Niobium Dragon would acquire all of Itafos’s shares.
Under the acquisition, St George will pay US$10 million ($16 million) cash and two deferred payments totalling US$11 million.
As such, the company conducted a $20 million capital raising earlier this week to fund the acquisition costs. GBA Capital is acting as lead manager and bookrunner to the placement.
St George Mining is a critical minerals-focused explorer and developer with projects in Brazil and Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: St George Mining
