St George extends REalloys MoU, targets US magnet offtake

St George Mining has extended its memorandum of understanding with US magnet producer REalloys from 120 days to a one-year term to advance commercialisation of rare earth products from the Araxá project in Brazil.

The firms will prioritise metallurgical testing and development of a processing flowsheet to inform a potential definitive offtake agreement. St George expects any agreement could cover up to 40% of Araxá's rare earth output, providing a pathway into the US critical minerals and downstream magnet market.

REalloys is building a vertically integrated mine-to-magnet platform aimed at North American supply-chain independence, producing high-performance magnet materials for US government and industrial customers. St George has engaged with US government representatives as it seeks commercial arrangements supportive of Araxá’s development.

Araxá hosts a large carbonatite rare earth and niobium resource, reported at 41.2Mt at 0.68% Nb2O5 and 40.6Mt at 4.13% total rare earth oxides, and is compared to major hard-rock deposits such as Mt Weld and Mountain Pass. A resource upgrade is expected later this quarter, which St George says will further enhance Araxá’s world-class standing.