08:14 AM EDT, 08/06/2024 (MT Newswires) -- Itafos ( MBCF ) overnight Monday agreed to sell the Araxa rare earths-niobium project in Brazil to Australia-listed St George Mining for US$21 million.

Under the terms, St George will make a cash payment US$10 million at closing and will make deferred cash payments of US$6 million nine months after closing, and US$5 million 18 months after closing.

Upon closing, St George will also issue 10% of its shares, 9,999,990 options to acquire St George shares and 11,111,100 performance rights.

The transaction is expected to close late in the third quarter or early in the fourth quarter.

"Today's announcement of the divestiture of the Araxa asset continues to demonstrate our focus on delivering long term shareholder value through the focus on our core business," CEO David Delaney said. "This transaction underlines our commitment to pursue strategic initiatives that enhance shareholder value."

Itafos' ( MBCF ) share price fell 4.2% on Friday to $1.38.