Venmyn gave fair value of USD 967m to Araxá, page-37

So while this is not a pure exploration story, there is exploration upside, especially given less than 10% of SGQ’s project area has been drilled (and that drilling was close-spaced).Unlike ~$842M WA1 Resources and $248M Encounter Resources which have their valuable niobium sitting far away in the West Australian desert - the $55M capped SGQ’s Brazilian niobium project is near a skilled workforce and important infrastructure like sealed roads, grid power, water, telecommunications, and accommodation.(this is because of the niobium mine next door to SGQ, plus a number of other mines within a few kilometres)Having access to all that infrastructure and workforce on your doorstep means it is much faster and cheaper to bring a mine into production.We Invested in SGQ to advance the existing niobium discovery and progress through the development stages toward building a mine.As SGQ progresses through each stage, we hope to see the market steadily re-rate the stock.We have looked at many early stage resource stocks in the last few months, and SGQ’s new project is the one we think will deliver us returns in the current market conditions over a long term hold.It is early days, and success is no guarantee, but we think SGQ is acquiring a niobium asset which has a clear pathway to becoming an operating mine - and there are only three in the world right now.SGQ’s project also contains rare earths in the same deposit.Just like the high grade niobium found from surface, SGQ’s project has also recorded thick intercepts of high grade rare earths elements (REE) from surface.As well as niobium, later stage rare earth projects (specifically those located in Brazil) have also been attracting capital in the markets:Brazilian Rare Earths - IPO'd in December last year at $1.47/share raising $50M. The company hit a high point of $3.70 and now trades at a market cap of ~$550M.Meteoric Resources - Traded at $0.012 before acquiring the Brazilian REE project. The company hit a high point of $0.30 and now trades at a ~$210M market cap.Both of these companies have significantly shown sustainable re-rates off the back of acquiring and developing REE projects in Brazil: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.Remember - post acquisition SGQ will be capped at $55M - significantly less than Meteoric and Brazilian Rare Earths.Today, we are going to explain why we think SGQ has the best chance to actually get a mine up and running BEFORE WA1 Resources, Encounter Resources, Meteoric Resources and Brazilian Rare Earths.So how did SGQ pick up such an advanced niobium and rare earth project?Right next door to the largest niobium producer in the world and in a top mining jurisdiction?Well it turns out SGQ’s project was owned by a fertiliser (phosphate) company called Itafos and the niobium and rare earth hits sat alongside phosphate mineralisation.(yes, SGQ also has phosphate mineralisation on its project too - which could be interesting if fertiliser prices start moving aggressively higher)Itafos is a listed company in Canada (TSX-V: IFOS) and has a producing phosphate mine.Itafos is trying to reduce its debt burden, so has agreed to sell the project to SGQ for US$21M in staged payments.Investors like simplicity and to Itafos this was a non-core asset - they just don't have the bandwidth to bring another mine into production.At the same time as part of this deal, Itafos is taking a ~10% stake in SGQ - so they obviously don't want to give up the upside of the asset entirely.This deal reminds us of when Meteoric paid for a later stage rare earths project in Brazil, and its share price went from 1.2c to ~30c. More on this in a second.A key reason we have Invested in SGQ is that we think the ASX will rerate SGQ’s new later stage niobium and rare earths asset inline with the values placed on other ASX listed niobium and rare earth players like WA1 Resources, Encounter Resources, Meteoric Resources and Brazilian Rare Earths.Over the coming 12-18 months we want to see SGQ:Complete the transaction and vendor paymentsRun an extensive amount of drillingDeliver a JORC compliant resourceRun met test workComplete a Pre Feasibility StudyIntroducing our latest Portfolio addition: St George Mining Ltd (ASX:SGQ)Today, SGQ announced the acquisition of its Brazilian niobium/REE project.Post completion of the deal, SGQ will have a market cap of $55M and approximately $7.5M in cash (at 2.5c/share).Niobium is a metal that has traditionally been used to make steel stronger and lighter - this use case is 88% of niobium demand.However, niobium is also used in a range of speciality applications including aerospace, defence, semiconductors, optical lenses, and MRI equipment - about 12% of demand.And it turns out niobium can also be used in battery technologies to improve battery performance and life - this is a high growth emerging market for niobium.Because the niobium market is so concentrated by one private company, governments around the world are looking to secure their supply chains. Niobium is right up the top of US and EU critical mineral lists and is of key strategic interest.(and money has been flowing into niobium discoveries like WA1 Resources and Encounter Resources)The company that owns the mine that produces 80% of the world's niobium is called CBMM and it is located in Minas Gerais, Brazil.Minas Gerais is a Tier 1, stable mining jurisdiction, with thousands of mines focused on a range of metals. It's the same place we recently visited, and heard the government pitching its state to foreign capital - it's clearly open for business.It is the same state where Latin Resources made a giant lithium discovery - and went from 3c to 43c - one of our best ever Investments - so we like the region.Our newest investment SGQ is located in the same state as both Latin Resources and CBMM.Today SGQ acquired an advanced stage development asset that has over 500 intercepts with niobium grades above 1%... and still has 90% left of the project to drill out.The deal is still conditional on certain conditions being satisfied and is expected to close in late September/early October of this year.Compared to other niobium projects, we think that this one has a very fast path to actually becoming a mine.SGQ is also following the playbook set by Meteoric Resources for acquiring a late stage asset in Brazil.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 became the number one ASX rare earths exposure in Brazil and saw its share price go from 1.2c to a high of above 30c...Because the asset was an existing discovery BEFORE the spotlight on critical minerals (particularly, REE projects), the company got a headstart on other exploration companies.We are Invested in SGQ because we think it can become the number one Brazilian niobium exposure on the ASX.SGQ plans to have a maiden JORC resource complete and a Pre Feasibility Study started on the project in the next 12 months.Post transaction SGQ will have a market cap of $55M, which is in line with valuations we have seen some early stage explorers trade at...The big differentiator is that SGQ’s advanced asset sits on the same geological structure where the world’s biggest niobium mine is currently operating.When it comes to turning discoveries into mines, the quickest development stories are of projects that sit near existing production infrastructure.That’s another reason why we are Invested in SGQ.Another differentiator is that SGQ’s project isn't just a niobium story.As we noted above, SGQ’s project also has drilled rare earth grades of >10% TREO at its carbonatite - this is comparable to grades seen from Lynas’s Mount Weld (106.6mt at 4.12% TREO) - albeit at a smaller scale.We are Invested in SGQ to see it take its project from where it is now into development studies over the coming months.