Southern Cross Gold Consolidated has successfully closed the first tranche of a private placement, raising C$88.8 million to advance its Sunday Creek Gold-Antimony Project in Victoria, Australia. The funds will support drilling, resource definition, and early development milestones.
- Raised C$88.8 million through first tranche private placement
- Issued 19.7 million common shares/CDIs at C$4.50 each
- Funds allocated to drilling, decline development, and economic assessment
- Second tranche of approximately C$54.3 million expected mid-May
- Insider Darren Morcombe increased stake to nearly 12%
Capital Raise to Accelerate Sunday Creek Project
Southern Cross Gold Consolidated (ASX: SX2, TSXV: SXGC) has closed the first tranche of its private placement, securing gross proceeds of approximately C$88.8 million (A$102 million). The company issued 19,733,160 common shares and CDIs at a price of C$4.50 each, marking a significant capital injection aimed at advancing the Sunday Creek Gold-Antimony Project in Victoria, Australia.
The Sunday Creek project is strategically important due to its dual-metal profile, combining gold with antimony, a critical metal for defense and semiconductor industries. This unique positioning enhances the project's value amid growing global demand and supply chain considerations.
Funding Key Milestones and Growth
The raised capital will fund a comprehensive development program, including a C$53 million drilling campaign to establish an Inferred Resource by early 2027, C$27 million allocated for decline development to improve access to mineralization, and C$4 million for a Preliminary Economic Assessment. Additionally, C$59 million is earmarked for exploration expansion along the 12-kilometre mineralized trend and for working capital and general administrative expenses over the next three years.
The company has engaged Stifel Nicolaus Canada and Aitken Capital Partners as joint lead managers and bookrunners for the placement, underscoring strong institutional support. The second tranche of the placement, expected to raise an additional C$54.3 million, is anticipated to close around May 14, 2025, subject to regulatory approvals and market conditions.
Insider Participation and Shareholding Impact
Notably, insider Darren Morcombe subscribed for 980,392 shares in the first tranche, increasing his holding to 11.91% on a non-diluted basis. This insider participation signals confidence in the company’s growth trajectory and the underlying value of the Sunday Creek project.
The newly issued shares are subject to a four-month hold period, expiring in September 2025, and require TSX Venture Exchange approval before CDI conversion and trading can commence on the ASX. The placement was conducted under exemptions from prospectus requirements in Canada and Australia, with strict limitations on distribution within the United States.
Strategic Outlook
Southern Cross Gold’s Sunday Creek project benefits from a substantial landholding and a robust drilling program planned through 2025, positioning it well to become a tier-one gold-antimony asset. The company’s focus on advancing resource definition and economic studies aligns with broader market interest in critical minerals, particularly antimony, which faces supply constraints due to geopolitical factors.
As the company progresses through its development milestones, investors will be watching closely for drilling results and updates on the second tranche closing, which together will shape the near-term outlook for Southern Cross Gold.
Bottom Line?
With strong capital backing and insider confidence, Southern Cross Gold is poised to unlock significant value at Sunday Creek, but execution risks remain as the project advances.
Questions in the middle?
- Will the second tranche close on schedule and at similar pricing?
- How will drilling results impact resource estimates and project valuation?
- What are the potential regulatory or market risks affecting project timelines?