St George Mining (ASX:SGQ) secured firm commitments to raise a gross AU$60 million through a dual-tranche institutional placement of 600 million ordinary shares at AU$0.10 each, according to a Wednesday filing with the Australian bourse.

The placement is supported by the company's largest shareholder, Hancock Prospecting, which has committed to subscribe for AU$20 million worth of shares, per the filing.

Following completion, Hancock will hold a roughly 10.5% stake in St George Mining.

In the first tranche, the company will issue about 424.5 million new shares to raise around AU$42.4 million. Under the second tranche, it will issue about 175.5 million shares to raise around AU$17.6 million, subject to shareholder approval.

St George Mining will use the proceeds to develop its high-grade rare earth and niobium Araxá project in Brazil.