Southern Cross Gold Raises C$143M in Private Placement to Fund Drilling and Expansion
Southern Cross Gold Consolidated Ltd has successfully arranged a C$143 million private placement, positioning the company to accelerate development of its Sunday Creek Gold-Antimony Project in Victoria, Australia.
- Upsized private placement raises C$143 million (AUD$162 million)
- Funds allocated to drilling, underground decline, economic assessment, and regional exploration
- Strong demand from existing and new institutional investors across Australia, Canada, and overseas
- Placement shares issued at a discount to recent trading prices with standard regulatory approvals
- Funding supports Southern Cross Gold’s ambition to become a key Western supplier of critical antimony
Capital Raise to Propel Sunday Creek Project
Southern Cross Gold Consolidated Ltd (ASX: SX2, TSXV: SXGC) has announced an upsized private placement raising approximately C$143 million (AUD$162 million) to fully fund the advancement of its Sunday Creek Gold-Antimony Project, located 60 kilometres north of Melbourne, Victoria. The capital injection comes amid strong demand from a mix of existing shareholders and new institutional investors from Australia, Canada, and overseas, underscoring growing confidence in the project’s potential.
The placement, priced at C$4.50 per common share and A$5.10 per CDI, represents a modest discount to recent trading prices, a common feature in such transactions to incentivize participation. The securities will be issued under the company’s existing capacity without requiring shareholder approval, subject to regulatory clearances and customary hold periods.
Strategic Allocation of Funds
These targeted investments reflect Southern Cross Gold’s commitment to derisking and expanding Sunday Creek, which has already demonstrated exceptional gold and antimony mineralization continuity from surface to depths of 1,100 metres. The project’s dual-metal profile, with antimony contributing approximately 20% of in-situ value, enhances its strategic importance.
Geopolitical and Market Implications
Michael Hudson, Southern Cross Gold’s President and CEO, highlighted the geopolitical significance of antimony, a critical metal used in defence and semiconductor applications. With increasing export restrictions from China, the world’s dominant antimony supplier, Sunday Creek is well-positioned to become a key Western source. This aligns with broader industrial and defence consortium interests, including Australia’s role in the AUKUS alliance, potentially elevating the project’s strategic value beyond conventional gold mining economics.
The company’s strengthened treasury and accelerated development plans are expected to provide a clearer pathway to unlocking value, with upcoming milestones including resource definition, underground access permitting, and economic studies. The inclusion of new institutional investors also signals growing market recognition of the project’s potential.
Looking Ahead
While the placement marks a significant funding milestone, the timing of tranche closings and receipt of all regulatory approvals remain subject to conditions. Market dynamics and geopolitical developments will continue to influence project economics and execution risks. Nonetheless, Southern Cross Gold’s strategic capital raise positions it well to advance Sunday Creek in a tier-one jurisdiction with a compelling dual-metal asset.
Bottom Line?
Southern Cross Gold’s substantial capital raise sets the stage for a transformative phase at Sunday Creek, with investors keenly watching upcoming resource and development milestones.
Questions in the middle?
- How will the evolving geopolitical landscape impact antimony demand and pricing for Sunday Creek?
- What are the key risks and timelines associated with underground decline permitting and construction?
- How might the new institutional investors influence Southern Cross Gold’s strategic direction and market perception?
