St George Mining Limited (ASX: SGQ) has announced it will upscale its drill program at the Araxá Project in Minas Gerais, Brazil, after securing firm commitments for A$5,000,000 through a strategic placement. St George Mining is focused on the discovery and development of strategic minerals resources. The company’s primary focus is on its 100%-owned Araxá Project in Brazil.
The placement, priced at A$0.038 per share, represents a 13.1% premium to the 30-day volume-weighted average price (VWAP) as of 22 July 2025. The new funds will be used to rapidly expand the recently defined Mineral Resource Estimate (MRE) of 40.6Mt @ 4.13% TREO (Total Rare Earth Oxides). Due to the extra capital, the company has increased its drilling plans.
With the additional funding, St George Mining will deploy three diamond drill rigs at the Araxá Project, two more than initially planned. The upscaled program includes over 9,000 metres of diamond drilling. The company anticipates a steady flow of assay results and drilling updates throughout the second half of 2025, as it will operate five drilling rigs at Araxá.
The diamond drilling program will target the expansion of the Araxá Project’s rare earths and niobium deposit, which is open in all directions. The company also aims to convert existing Inferred resources to the Indicated category. St George is also exploring opportunities to establish downstream partnerships in the US for rare earths processing and magnet production, driven by increasing US demand for rare earths supply outside of China.
