St George Mining (ASX:SGQ) extended a strategic alliance with US-based REalloys regarding the rare earths resource at the Araxá project in Brazil, according to a Wednesday Australian bourse filing.

REalloys is conducting metallurgical test work on samples of rare earth oxalates from the Araxá project using its proprietary technology for splitting and recovery of individual rare earth elements.

The results of the testing will guide the optimization of the processing flowsheet for producing rare earth products at the project.

The firms signed a memorandum of understanding in September 2025, with the knowledge that a definitive offtake agreement would be entered into within 120 days of the signing of the memorandum. This period was extended to one year to allow for more detailed metallurgical test work and flow sheet development.