Southern Cross Gold Consolidated Ltd has successfully arranged an upsized C$143 million funding round to fast-track its Sunday Creek Gold-Antimony Project in Victoria, Australia. This capital injection positions the company to advance drilling, underground development, and economic assessments over the coming years.
- Raised C$143 million (AUD$162 million) via private placement
- Placement involves 31.8 million common shares/CDIs at C$4.50/A$5.10 per share
- Funds allocated for drilling to establish inferred resource by Q1 2027 and decline development
- Strong demand from existing and new institutional investors across Australia, Canada, and overseas
- Project strategically important due to gold-antimony dual metal profile and geopolitical factors
Funding Upsize and Strategic Implications
Southern Cross Gold Consolidated Ltd (ASX: SX2, TSXV: SXGC) has announced an upsized private placement raising approximately C$143 million (AUD$162 million) to accelerate development of its Sunday Creek Gold-Antimony Project located 60 km north of Melbourne, Victoria. This capital raise, led by Nicolaus Capital Partners Ltd, Jett Capital Advisors, and Stifel Canada Inc., reflects strong investor confidence in the project’s potential and the company’s growth strategy.
The placement involves issuing 31.8 million common shares and/or common share depositary interests (CDIs) at a price of C$4.50 per share (A$5.10 per CDI). Notably, the Canadian shares issued under this placement will be subject to a four-month trading hold period, while the CDIs will be tradeable on the ASX immediately. The pricing represents a modest discount to recent trading prices, balancing capital raising efficiency with shareholder value preservation.
Allocation of Proceeds and Project Advancement
This comprehensive funding package ensures that Southern Cross Gold is fully financed to execute its growth plan, reducing execution risk and enabling accelerated progress on both resource definition and economic studies. The underground decline development is particularly significant, as it will facilitate more detailed underground drilling and metallurgical testing, critical steps toward project feasibility.
Market Reception and Investor Confidence
The placement attracted strong demand from a mix of existing shareholders and new institutional investors across Australia, Canada, and international markets. This broad-based support underscores the market’s recognition of Sunday Creek’s dual-metal profile, combining gold with a substantial antimony component. Antimony’s strategic importance has grown amid geopolitical tensions and supply chain concerns, positioning Sunday Creek as a potential key Western supplier of this critical metal.
Michael Hudson, Southern Cross Gold’s President and CEO, highlighted the significance of this capital raise, noting it provides the financial foundation to derisk and expand the project. He emphasized the company’s focus on developing a high-grade gold asset in a tier-one jurisdiction while leveraging the antimony component’s strategic value.
Strategic and Geopolitical Context
Sunday Creek’s location in Victoria, Australia, a stable and mining-friendly jurisdiction, combined with its sizeable gold-antimony mineralization, enhances its strategic appeal. Antimony is critical for defense, semiconductor, and industrial applications, with supply currently dominated by China. Southern Cross Gold’s inclusion in the US Defense Industrial Base Consortium and Australia’s critical minerals initiatives further underscores the project’s geopolitical relevance.
With over 60 km² of landholding and ongoing exploration success, Southern Cross Gold is well positioned to advance Sunday Creek as a globally significant gold-antimony project. The company’s planned 60,000-meter drill program through 2025 aims to expand the resource base and underpin future development decisions.
Next Steps and Market Watch
The company expects to complete tranche closings in early to mid-May 2025, subject to regulatory approvals, including TSXV consent. Investors should watch for forthcoming updates on drilling progress, resource estimation milestones, and permitting for underground development. These catalysts will be critical in validating the project’s economic potential and advancing Southern Cross Gold’s market valuation.
Bottom Line?
Southern Cross Gold’s substantial funding boost sets the stage for rapid advancement of Sunday Creek, with market eyes on upcoming drilling and resource milestones.
Questions in the middle?
- How will the four-month hold on Canadian shares impact liquidity and trading dynamics?
- What are the expected timelines and hurdles for regulatory approvals, particularly TSXV consent?
- How might evolving geopolitical tensions influence antimony demand and project valuation?