A big 2025 calendar year for St George Mining has continued, following news of its $72.5m capital raise on Monday.
In August, West Perth-based St George Mining elected to dual list on the Frankfurt Stock Exchange in a bid to increase and entice exposure amongst European investors.
A junior at the start of the year, the John Prineas-chaired developer now has a market capital in the vicinity of $338.7 million, as it continues to make strides with its flagship Araxá niobium and rare earth elements project in the Brazilian state of Minas Gerais.
As of Monday, it will likely now also counts Australia’s wealthiest person, Gina Rinehart – by way of Hancock Prospecting – as a major investor.
St George, which ducked into a trading halt on Friday, emerged on Monday by telling the market it would raise $72.5 million, with proceeds allocated towards moving Araxá towards a potential positive final investment decision.
Aside from facilitating a placement to raise $50 million by issuing around 500 million new ordinary shares at 10 cents a pop – a secondary placement with Hancock Prospecting resulted in the issuing of 225 million new ordinary shares, subject to shareholder approval.
Both Canaccord Genuity and Jett Capital Advisors were appointed joint lead managers and bookrunners to the placement.
In January, the developer also tapped investors for $20 million.
Mr Prineas said he was thrilled that Hancock Prospecting’s increased backing could be a real feather in the company’s cap.
“We are also very pleased that Hancock Prospecting has chosen to increase its existing shareholding in St George and emerge as a substantial shareholder,” he said.
“Hancock Prospecting is a company with significant experience in recognising the value in strategic commodities and backing successful critical minerals companies including MP Materials and Lynas Corporation – as well as having significant project execution and delivery experience for St George to leverage off in the future.”
With the US increasing its focus on securing viable long-term options for critical minerals outside of China, the fact that six of the country’s top 10 listed critical minerals are located at Araxá could also bode well for both St George and the asset moving forward.
Shares in St George rose early on Monday following the announcement, up 26 per cent to 14.5 cents as of 9.58am AWST – its highest price since September 30 2019.
