Former Brazilian Minister of Mines joins SGQ as advisor to the Board

Published 27-AUG-2024 09:26 A.M.

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St George Mining (ASX:SGQ) has just announced a new advisor to its board, Adolfo Sachida, Brazil’s former Minister of Mines and Energy.

(Source)

This is a key appointment that we think will support SGQ as it advances its newly acquired niobium and rare earths project in Brazil.

That project sits right next door to the world’s largest niobium mine that supplies 80% of the niobium market:

We think our Investment SGQ is also following the playbook set by Meteoric Resources.

A few years ago, Meteoric Resource acquired an advanced rare earths asset in Brazil, instead of rushing to secure exploration ground like most other juniors on the ASX.

Meteoric then spent the next 12 months developing the asset through drilling and taking it towards feasibility studies.

It’s a model that delivered a +1000% re-rate for Meteoric in the space of two years with the share price rising from 1.5c to peak of 30c.

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

SGQ plans to have a maiden JORC resource complete and a Pre Feasibility Study started on the project in the next 12 months.

Given SGQ is looking to advance the project through the feasibility stages of development, the new advisory appointment of Adolfo Sachida aligns with this strategy.

Sachsida is a highly credentialed business leader, whose roles include:

Minister of Mines and Energy
Chief Secretary of Economic Affairs of the Ministry for the Economy
Secretary of Economic Policy of the Ministry for the Economy

Appointments like this one are critical for development stage companies looking to advance their projects in a particular jurisdiction.

He will be able support SGQ’s activities in the region by facilitating interactions with key stakeholders in government.

This is the exactly type of appointment that we want to see from our development/feasibility stage companies.

Here is what he had to say about the opportunity:

“Brazil is the world leader in safe and responsible niobium production and St George has a pathway to join a small and elite group of niobium producers with the acquisition of the Araxá Project in Minas Gerais.”

How does today’s news affect SGQ’s investment memo?

Although this was not forecast in our current memo, we think this appointment reduces “permitting risk” for SGQ.

Having such a credentialled advisor, with key networks within Brazil’s mining government departments will hopefully make it much easier for SGQ to secure the necessary permits it needs to both explore and develop the project.

Adolfo Sachida also commented that “the State of Minas Gerais in particular, is a Tier 1 mining jurisdiction” which talks to one of the key reasons we Invested in SGQ:

Project located in Minas Gerais: the same state in Brazil as Latin Resources.

The project is located in the Minas Gerais state of Brazil, a state that we have visited and home to one of our best ever Investments, Latin Resources. Latin Resources grew from $0.03 to over $0.40 off the back of a giant lithium discovery. The region is very mining friendly with good access to infrastructure and power.

Why did we Invest in SGQ? SGQ Investment Memo. 6th August 2024