Southern Cross Gold’s C$143M Raise Hinges on Upcoming Third Tranche Closure

Capital Raise Advances Strategic Project

Southern Cross Gold Consolidated Ltd (ASX: SX2, TSXV: SXGC) has announced the successful closing of the second tranche of its substantial private placement, raising approximately C$29.87 million. This latest capital injection forms part of a broader C$143 million (A$162 million) fundraising effort aimed at accelerating development at the Sunday Creek Gold-Antimony Project, located just 60 kilometres north of Melbourne.

The company issued over 6.6 million common shares and depositary interests at a price of C$4.50 each, with proceeds earmarked for a series of key initiatives. These include an ambitious drilling program targeting an Inferred Resource by early 2027, the construction of a one-kilometre decline to improve access to mineralization, a Preliminary Economic Assessment, and extensive exploration along the project's 12-kilometre mineralized trend.

Strategic Importance of Sunday Creek

Sunday Creek stands out not only for its gold potential but also for its significant antimony content, which accounts for roughly 20% of the in-situ value. This dual-metal profile is increasingly valuable amid global supply constraints, particularly following China's export restrictions on antimony, a critical metal for defence and semiconductor industries. Southern Cross Gold’s inclusion in the US Defense Industrial Base Consortium and alignment with Australia's AUKUS initiatives further underscore the project's strategic relevance as a potential Western supplier of this critical mineral.

Importantly, the project’s economics are primarily driven by gold, which mitigates some of the risks associated with antimony markets while preserving its strategic supply potential. Preliminary metallurgical studies indicate the mineralization is amenable to conventional processing methods, enhancing the project's feasibility.

Looking Ahead: Third Tranche and Development Milestones

The company anticipates closing a third tranche of the private placement shortly, which could raise an additional C$24.44 million, subject to regulatory approvals. This final tranche will further bolster Southern Cross Gold’s capacity to advance Sunday Creek through its planned milestones over the next three years, including resource expansion, infrastructure development, and ongoing exploration.

Shares issued in this tranche are subject to a statutory hold period of four months and one day, reflecting regulatory compliance and investor protections. The placement was managed by a syndicate of prominent financial institutions, including Stifel Nicolaus Canada and Aitken Mount Capital Partners, highlighting strong institutional support for the company’s growth strategy.

With over 1,000 hectares of strategically held land and a comprehensive 60-kilometre drilling program underway, Southern Cross Gold is positioning itself to unlock the full potential of one of the Western world’s most significant gold-antimony discoveries in a stable, tier-one jurisdiction.