St George Mining Limited (ASX:SGQ) Secures A$8M Investment for Araxá Project
Strategic Partnership and Investment
St George Mining Limited has entered a binding Memorandum of Understanding with Shandong Xinhai Mining Technology & Equipment Inc to develop the Araxá Niobium-REE Project in Brazil. Xinhai has committed A$8 million towards the A$20 million equity fund raising for the project acquisition. Additionally, Xinhai will negotiate a fixed-price EPC contract to provide engineering, procurement, and construction services.
Project Development and Funding
The partnership includes Xinhai’s expertise in metallurgical testing, mineral processing, and project construction to support the Araxá Project. Xinhai will also assist in arranging non-dilutive funding for the EPC contract and secure exclusive distribution and marketing rights for 80% of niobium sold into the Chinese market. The acquisition of the Araxá Project is expected to be completed in Q1 2025.
Executive Comments
John Prineas, Executive Chairman of St George Mining, stated, “We are delighted to be partnering with Xinhai, a truly global mining services provider focused on providing clients with integrated construction and operation solutions for modern, efficient and energy-saving mines. Xinhai’s global depth of expertise ensures that it can design and deliver optimal project solutions. This partnership reflects the near-term development potential of the Araxá Project and the favourable mining jurisdiction of Minas Gerais.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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