Southern Cross Gold Ltd has officially become a wholly owned subsidiary of Southern Cross Gold Consolidated Ltd following a scheme of arrangement, with shareholders receiving new securities and the company set for ASX delisting.
- Scheme of arrangement completed, SXG now fully owned by SXGC
- SXG shareholders receive 1 SX2 CDI or SXGC share per SXG share
- Trading in SXG shares suspended since 15 January 2025
- SXG to be delisted from ASX effective 28 January 2025
- Acquisition consolidates Southern Cross Gold’s corporate structure under Canadian-listed entity
Scheme Implementation Finalised
Southern Cross Gold Ltd (ASX: SXG) has confirmed the successful implementation of its previously announced scheme of arrangement, whereby Southern Cross Gold Consolidated Ltd (TSXV: SXGC, ASX: SX2) has acquired 100% ownership of SXG. This marks a significant milestone in the company’s corporate evolution, consolidating its Australian operations under the Canadian-listed parent entity.
The scheme, effective as of 24 January 2025, involved the transfer of all SXG shares to SXGC. Shareholders of SXG received one new SX2 CHESS Depository Interest (CDI) or one common share of SXGC for each SXG share held as of the record date on 17 January 2025. This exchange aligns shareholder interests with the consolidated group and facilitates streamlined governance and capital management.
Delisting and Market Impact
Following the scheme’s implementation, trading in SXG shares was suspended on 15 January 2025, ahead of the planned delisting from the ASX. The company has applied for termination of quotation, with removal from the official ASX list scheduled for 28 January 2025. This move reflects the strategic decision to centralize listing and trading activities on the TSX Venture Exchange under SXGC, potentially enhancing liquidity and investor reach in North America.
For existing SXG shareholders, the transition to holding SX2 CDIs or SXGC shares represents a shift in market exposure and regulatory environment. While the consolidation may offer operational efficiencies and a unified growth strategy, it also introduces new dynamics in shareholder engagement and market performance that will be closely watched.
Strategic Implications and Outlook
The acquisition and scheme completion underscore Southern Cross Gold’s intent to leverage cross-border capital markets and streamline its corporate structure. By unifying under the Canadian-listed SXGC, the group may benefit from broader access to capital, enhanced investor visibility, and potential synergies in exploration and development activities.
However, the long-term impact on shareholder value remains to be seen. Market participants will be keen to monitor SXGC’s operational execution and financial results in the coming quarters, assessing whether the consolidation delivers on its promise of growth and value creation.
Company representatives, including Company Secretary Justin Mouchacca and Corporate Development lead Nicholas Mead, remain available for investor inquiries as the transition progresses.
Bottom Line?
As Southern Cross Gold transitions fully under SXGC, investors will watch closely to see if the consolidation translates into sustained growth and market confidence.
Questions in the middle?
- How will SXGC’s operational strategy evolve post-acquisition to benefit former SXG shareholders?
- What impact will the delisting have on liquidity and investor access for Australian shareholders?
- Will the consolidation under a Canadian-listed entity affect Southern Cross Gold’s exploration and development timelines?