Itafos Inc. has announced that it has partially monetised its ownership interest in St George Mining Ltd (St George) that it acquired as consideration for the sale of its Araxá project, a rare earth and niobium mining project in Brazil, announced in February of 2025.
Between October 13 - 14 2025, Itafos sold 277 893 103 ordinary shares of St George (SGQ Shares) and expected to receive total gross proceeds of approximately US$18.3 million on October 16 or 17 2025 based on current exchange rates and before certain fees and applicable taxes. On October 16, 2025, Itafos issued an exercise notice to exercise the 86 111 025 options at AU$0.04 per share.
Together with the initial payment received by Itafos in February 2025 of US$10 million (less withholding tax payable), Itafos has now received total gross proceeds of approximately US$28.3 million (less applicable taxes and fees) from St. George for the sale of its Araxá project. Under the terms of the sale agreement with St George, a further US$11 million is payable in two instalments. Additionally, future value is attributable to the shares issued on exercise of the option, given the options were in the money. This financial result demonstrates the Company’s commitment to monetise its non-core assets, strengthen its balance sheet and deliver value to shareholders.
David Delaney, Chief Executive Officer of the Company, commented: “The partial monetisation of the ownership interest in St George that we acquired from the divestiture of our Araxá rare earth project earlier on 2025 is another indication of our intentions to deliver long-term value to our shareholders by focusing on our core businesses. The equity interest in St George that we received as a portion of the total consideration for the sale of Araxá had appreciated significantly since the sale closing date as St George has been able to de-risk and advance the development of the project. As a result, we were able to recognise meaningful value from the sale of the SGQ shares at this time.”