St George Mining has adjusted its fundraising plan to acquire the Araxa niobium project in Brazil. While initially targeting a A$21.25 million raise, the company will now seek $20 million at a lower share price. The change is attributed to evolving market conditions. Despite the slight dilution, St George expects to finalize the acquisition by March end.
Niobium hopeful St George Mining has restructured a capital raise to hopefully finally secure the Araxa project in Brazil in the same province as CBMM's flagship mine of the same name. The John Prineas-chaired St George first made a plus-US$21 million bid for the project in August last year, announcing at the same time 'firm commitments' to raise A$21.25 million at 2.5c per share to support the purchase.
However, it took longer than planned to finalise the Araxa project purchase, and St George has now announced it will instead raise $20 million at 2c per share. Both the new placement and the previous plan were managed by GBA Capital. MNN understands changing commodity market conditions since the deal was first announced were the main reason for the amendment to the raising structure.It's a slightly more dilutive funding round than first planned, but Prineas said the company had received 'very strong' investor interest and was aiming to finalise the acquisition before the end of March. 'St George has been very active in laying the platform to leverage the advanced status of the project — including the signing of a cooperation agreement with the State of Minas Gerais to expedite project approvals, the signing of partnership agreements for potential downstream processing of the Araxa mineralisation, the appointment of industry-leading environmental consultants and, of course, establishing our own high-quality, in-country team with more than 40 years' combined experience in the niobium business,' Prineas said in a statement to the ASX.'The successful capital raise recognises the de-risked nature of the Araxa Project — with extensive high-grade niobium and rare earths mineralisation already confirmed by drilling — at a time when these critical metals are highly sought after globally by industry and governments alike.' He said drilling programs and other work had already been planned for 202
NIOBIUM MINING BRAZIL CAPITALRAISE PROJECTACQUISITION
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Silver Elephant Mining's Pulacayo MPC Cancelled Due to Alleged Illegal MiningSilver Elephant Mining's Pulacayo mining production contract (MPC) has been cancelled by Bolivia's state mining company Comibol due to alleged illegal mining activities. The company denies any wrongdoing and plans to appeal the cancellation. This development does not affect Silver Elephant's Apuradita mining concession.
Read more »
Mining Journal - Resourcestocks ArticlesMining Journal - Explore the leading publication for the global mining industry: Mining Journal provides an in depth analysis of the mining sector outlook and the latest developments.
Read more »
Mining News: Production Suspension, Mine Reopening, and CFO ChangeThis news update covers three separate events in the mining sector: Kazatomprom's suspension of production at the Inkai deposit due to regulatory approvals, the reopening of Griffin Mining's Caijiaying mine following an investigation, and Serabi Gold's appointment of a new CFO.
Read more »
AI-Powered Mining Startup KoBold Metals Secures Funding for Zambian Copper DepositKoBold Metals, a mining startup utilizing artificial intelligence to locate critical minerals, has raised $537 million from investors like Bill Gates and Jeff Bezos. The company plans to develop a massive copper deposit in Zambia, potentially becoming the country's biggest copper mine.
Read more »
El Salvador Lifts Mining Ban, Seeking Economic Boost Through GoldEl Salvador has overturned a seven-year ban on metals mining, aiming to leverage its gold resources for economic development. The move, spearheaded by President Nayib Bukele, comes amid a surge in gold prices and concerns about the country's high poverty rate.
Read more »
Mako Mining to Acquire Moss Gold Mine in ArizonaMako Mining has agreed to acquire the Moss gold mine in Arizona from EG Acquisition, a company controlled by Mako's controlling shareholder. The acquisition comes after the successful elimination of over $60 million in liabilities associated with the mine.
Read more »