Itafos completes the sale of its Araxá project

St George now owns all of the outstanding securities of Itafos Araxá Mineracao E Fertilizantes S.A (Itafos Araxá).

Pursuant to the sale agreement with St George, the company has received from St George the first instalment cash payment of US$10 million (less withholding tax payable) and 266 782 003 ordinary shares of St Georges (SGQ shares) representing 10% of St George’s outstanding share capital, 86 111 025 options to acquire SGQ shares at an exercise price of AUS$0.04 (expiring two years from the date of issue), and 11 111 100 performance rights, convertible into SGQ shares for no additional consideration, upon St George reporting an Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC) compliant inferred resource of no less than 25 Mt at 3.5% total rare earth oxide (TREO) at a cut-off of 2% TREO within five years from the date of issue.

Pursuant to the sale agreement, St George is required to make two additional cash instalment payments to the company as follows: US$6 000 000 nine months after completion of the transaction which occurred on 26 February 2025 and US$5 000 000 18 months after completion (collectively, the deferred payments).

David Delaney, CEO of the company, commented: “The sale of our non-core Araxá development asset demonstrates our commitment to delivering long term shareholder value. We are pleased to partner with St George as a 10% equity shareholder and to retain an indirect economic interest in the Araxá asset as St George develops this niobium rare-earth mineral asset to unlock its full value.”

The obligation of St George to make the deferred payments to the company is secured by St George’s assets in Australia and Brazil until such time as the deferred payments have been received by the company.

The Araxá project is located in Minas Gerais, Brazil, and hosts a niobium and rare earth elements deposit with the potential for development of a vertically integrated mine and extraction plant capable of producing rare earth oxides and niobium oxide to serve international markets.

Read the article online at: https://www.worldfertilizer.com/project-news/27022025/itafos-completes-the-sale-of-its-arax-project/