Investors in St George Mining Ltd (ASX: SGQ) have had plenty of reasons to smile so far in 2025.
Shares in this little-known ASX rare earths stock have soared by a stunning 575% since the start of January to close out Monday at $0.135 apiece.
And the latest catalyst for this surge came from a bumper investment from one of the richest women in the world, Gina Rinehart.
On Monday, St George announced that it had secured $72.5 million in funding to move its Araxá rare earths and niobium project in Brazil closer to production.
Firstly, it raised $50 million via an institutional placement predominantly from European and North American investment funds.
And secondly, it cemented Hancock Prospecting as a strategic investor.
Spearheaded by Gina Reinhart, Hancock Prospecting is an Aussie mining icon best known for its iron ore mining empire in the Pilbara region of Western Australia.
However, in recent years it has been diversifying into other modern-day commodities such as lithium and rare earths, alongside mass-scale beef production.
Hancock's strategic $22.5 million investment in St George appears to imply a vote of confidence for the potential of bringing Araxá to production.
Let's take a closer look at what makes this ASX rare earths stock so compelling.
Image source: Getty Images
Strategic potential
According to the company, Araxá represents a globally significant niobium and rare earths deposit.
The project holds a "world class" mineral resource containing 280,000 tonnes of niobium and 1.7 million tonnes of total rare earths oxide (TREO).
The deposit also shows favourable characteristics for a potential mining operation.
More specifically, it hosts free-digging mineralisation starting from surface which could support an open-pit mine.
Management also pointed to the potential for further resource growth.
For instance, a recently launched expansion drilling campaign discovered a new high-grade rare earths zone about one kilometre away from the existing resource.
And more broadly, the mineralisation remains open in all directions.
For example, mineralisation intercepted at depths below 100m has not yet been included in the current resource estimate.
Meanwhile, the project lies in an infrastructure-rich mining district known as Minas Gerais, which could help fast-track its development.
St George has already negotiated government support for expedited project approvals as it looks to drive the project towards mining.
Finally, the mineralised system at Araxá is hard-rock carbonatite style.
In other words, it's geologically akin to the only two major rare earths mines outside of China, including Mt Weld in Western Australia operated by Lynas Rare Earths Ltd (ASX: LYC).
So what?
The $75 million cash injection will enable St George to conduct a host of works required to advance Araxá closer to production.
These include an upgrade of the mineral resource, permitting, metallurgical test work, and economic assessment.
Reinhart's investment in this ASX rare earths stock also adds to a flurry of other eye-catching news in the sector.
Most notably, China recently expanded its rare earths export controls by adding five more elements to its restricted list.
In essence, rare earths are a group of 17 elements critical for a host of new-age industries such as clean energy and electric vehicles.
And China dominates the global market by producing more than 90% of the world's processed rare earths and rare earth magnets.
All up, export of 12 rare earths is now restricted out of China.
In response, US President Donald Trump threatened to impose new 100% tariffs on Chinese products.
This tit-for-tat helped push ASX rare earths stock higher in Monday's trading, including Lynas which hit a new 12-month peak.
Shares in St George also surged by 17% on Monday.
