BREAKING: Mining billionaire Gina Rinehart has just invested $22.5 million in the under-the-radar St George Mining Ltd (ASX: SGQ), triggering a remarkable surge in the company’s stock prices. Shares have skyrocketed by an astonishing 575% since January, closing at $0.135 on Monday.
As part of a major funding announcement on Monday, St George revealed it secured $72.5 million to advance its Araxá rare earths and niobium project located in Brazil. This funding includes a substantial $50 million raised through institutional placements, mainly from European and North American investment funds.
Rinehart’s Hancock Prospecting, renowned for its iron ore mining empire in Western Australia, has now positioned itself as a strategic investor in St George. This investment signals a strong vote of confidence in the potential of the Araxá project.
“The $75 million cash injection will enable St George to advance Araxá closer to production,” stated St George’s management.
The Araxá project is highlighted as a globally significant rare earths deposit, boasting a “world-class” mineral resource with 280,000 tonnes of niobium and 1.7 million tonnes of total rare earths oxide (TREO). With free-digging mineralization starting from the surface, the project is positioned for open-pit mining, enhancing its economic viability.
Management indicated significant resource growth potential, with a recent drilling campaign uncovering a new high-grade rare earths zone just one kilometer from the existing resource. The project also benefits from its location in Minas Gerais, an infrastructure-rich mining district, which could accelerate its development.
With government support for expedited project approvals, St George is set to move forward with crucial works including resource upgrades, permitting, and metallurgical testing.
This investment comes amid escalating tensions in the rare earths market. Just recently, China expanded its export controls by restricting five additional rare earth elements, currently dominating over 90% of the global market. This geopolitical shift has contributed to rising valuations in the sector, including a 17% increase in St George’s shares on Monday alone.
As the demand for rare earths intensifies, particularly for clean energy and electric vehicles, Rinehart’s investment could be a game-changer for St George Mining Ltd. Investors are closely watching further developments, as the market reacts to these significant changes.
In light of these developments, the question looms: What will be the next move for St George Mining and its ambitious Araxá project? Stay tuned for updates on this evolving story.
