Rare earths developer St George Mining on Monday announced a A$72.5-million equity raise, including a strategic investment by Gina Rinehart’s Hancock Prospecting, to advance the Araxá rare earth element (REE) and niobium project, in Brazil, through feasibility study work and towards a financial investment decision.

The ASX-listed company said it would raise A$50-million at A$0.10 a share through a strongly supported institutional placement led by major North American and European funds.

Hancock would invest a further A$22.5-million, also at A$0.10 a share, to cement its position on the St George register.

“We are delighted with the strong support received from local and overseas institutional investors who recognise the enormous potential of our high-grade rare earths and niobium project at Araxá,” said executive chairperson John Prineas.

“We are also very pleased that Hancock Prospecting has chosen to increase its existing shareholding in St George and emerge as a substantial shareholder. 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,” he added.

The Araxá project has a globally significant resource for both REE and niobium, with 40.6-million tonnes at 4.13% total rare earth oxide and 41.2-million tonnes at 0.68% niobium.

The deposits are hard-rock carbonatite style – the same as the rare earths deposits of the two major rare earths producing mines outside of China, namely MP Materials’ Mountain Pass in California and Lynas Rare Earths’ Mt Weld mine in Western Australia.

The neodymium/praseodymium (NdPr) grade at the Araxá project is 0.78%, with 320 000 t of contained NdPr, highlighting the potential for Araxá to be a significant supplier to permanent magnet manufacturers in Brazil and elsewhere.

The Araxá project also hosts large quantities of other REEs – including samarium, lutetium, terbium and gadolinium – all of which are on the list of top-ten critical minerals as defined by the US Department of Interior.

Niobium is also included in the top-ten critical minerals list. The US Department of Interior has described any potential loss of access to foreign supplies of niobium and the resultant negative impact on US GDP to be the second-largest loss of all critical minerals.

In recognition of the importance of niobium and rare earths supplies produced in Brazil to potentially strengthen US supply chains for critical minerals, the US has excluded niobium and rare earths imported to the US for processing from any increased tariffs.

St George has already entered into a strategic alliance with REAlloys, a US-based leader in rare earths processing and a magnet materials supplier to US government agencies.