St George Mining (ASX:SGQ) secured a preferential tax regime from the state of Minas Gerais in Brazil, granting exemptions on state goods tax for equipment and materials for its Araxá project, according to a Friday filing with the Australian bourse.

Any equipment and other materials acquired for the project are exempt from the state goods tax, with a rate of up to 18%, which is otherwise applied at the time of acquisition, the filing said.

Shares fell 2% in midday trade on Friday.