St George Mining Dilutes Share Count by 9.64 Million as Araxá Pilot Plant Countdown Begins

Australian explorer St George Mining converts nearly 10 million options, raising capital for its Araxá project in Brazil, as Gina Rinehart increases stake. Shareholder vote in July 2026 to unlock full funding.

St George Mining has flooded the market with nearly 10 million new shares as the Australian explorer accelerates development of its niobium and rare earths project in Brazil. The conversion of roughly 9.6 million options – the bulk at an exercise price of 0.04 Australian dollars – occurred on Thursday, with the company filing the mandatory notice that makes the securities immediately tradable.

The move is the second leg of a much larger capital raise that landed just days earlier. St George Mining secured 60 million AUD through an institutional placement, with Gina Rinehart’s Hancock Prospecting chipping in 20 million AUD to build its stake to 10.5%. That tranche, however, still requires approval at a shareholder meeting in July 2026 before the full proceeds become available.

Between 12 and 16 June 2026, the company issued roughly 9.64 million new shares, including a small lot of 120,000 unlisted options exercised at 0.06 AUD. That lifts the total outstanding shares to about 3.96 billion. Another 835 million options remain on the books, which could provide additional cash if exercised later.

The fresh capital is earmarked for the Araxá project in Minas Gerais, where recent metallurgical tests have delivered a niobium concentrate grade of nearly 40% while successfully recovering rare earths from the tailings. A pilot flotation plant is scheduled to start in July to refine recovery rates and pave the way for a final investment decision.

Investors’ patience is being tested by the stock’s wild swings. The share price closed Thursday at 0.10 AUD, down 2.86% on the day, while the annualised volatility over the past month runs close to 30%. The next catalyst will be the shareholder vote, which clears the second tranche of the funding and unlocks the full engineering push for the Brazilian deposits.