St George Mining Secures Strategic Partnership with Xinhai for Araxá Niobium-REE Project

2 min read | February 12, 2025 01:40 PM AEDT | By Team Kalkine Media

St George Mining Secures Strategic Partnership with Xinhai for Araxá Niobium-REE Project — Image source: shutterstock

EPC Contract and Project Development

As part of the MoU, St George and Xinhai will negotiate a Strategic Partnership Agreement, which will focus on:

Metallurgical testing and mineral processing solutions to optimize resource extraction.
Plant design and construction planning to ensure operational efficiency.
A fixed-price EPC (Engineering, Procurement, and Construction) contract to minimize project cost risks.
Assistance in securing non-dilutive funding options to support project execution.

This partnership will significantly de-risk the Araxá Project by leveraging Xinhai’s world-class EPC capabilities, having completed over 500 similar contracts globally.

AU$8 Million Strategic Investment

In addition to its technical support, Xinhai and its nominees have committed AU$8 million towards St George’s AU$20 million equity fundraising initiative, aimed at financing the acquisition and development of the Araxá Project. This investment reflects strong confidence in the project's economic potential and its strategic importance in the global niobium and REE market.

Boosting St George’s Project Delivery Team

With Xinhai joining as a strategic partner, St George gains access to a top-tier project delivery team with extensive experience in mine construction and operations. This partnership aligns with the company’s goal of accelerating the Araxá Project’s timeline while ensuring best-in-class execution.

Market Reaction

Investor confidence surged following the announcement, with SGQ shares rising over 14% on 12 February 2024, to trade at 3.9 cents per share.

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