Southern Cross Gold Secures C$24.4M to Propel Sunday Creek Project
Southern Cross Gold Consolidated has completed the final tranche of a private placement, raising C$24.4 million to advance its Sunday Creek Gold-Antimony Project in Australia. The funds will support drilling, development, and economic assessment milestones through 2027.
- Raised C$24.4 million via final tranche of private placement
- Issued over 5.4 million common shares and CDIs at C$4.50 each
- Funds earmarked for drilling to establish inferred resource by Q1 2027
- Development of decline and preliminary economic assessment planned
- Project strategically important for gold and critical antimony supply
Capital Raise Completes
Southern Cross Gold Consolidated (ASX: SX2, TSXV: SXGC) has successfully closed the third and final tranche of its private placement, securing gross proceeds of approximately C$24.4 million. This latest capital injection follows earlier tranches and brings the total raised to support the company’s flagship Sunday Creek Gold-Antimony Project in Victoria, Australia.
Funding Key Milestones
The funds raised will be directed towards a series of critical development and exploration activities. These include a C$53 million drilling program aimed at establishing an inferred mineral resource by the first quarter of 2027, a C$27 million investment in constructing a decline to access mineralization underground, and a C$4 million allocation to accelerate development efforts. Additionally, a preliminary economic assessment (PEA) is planned to evaluate the project’s viability, alongside C$59 million earmarked for regional exploration expansion and working capital over the next three years.
Strategic Importance of Sunday Creek
Sunday Creek stands out for its dual gold and antimony mineralization, with antimony comprising roughly 20% of the in-situ metal content. This dual-metal profile enhances the project’s strategic value, especially given antimony’s critical role in industrial applications and defense technologies. The metal’s significance has grown amid global supply chain concerns and export restrictions from China, positioning Southern Cross Gold as a potential key Western supplier. The project’s location in a stable, mining-friendly jurisdiction further strengthens its appeal.
Share Issuance and Trading Restrictions
The company issued 5,431,638 common shares and CHESS Depositary Interests (CDIs) at a price of C$4.50 per share. These shares are subject to a four-month hold period, expiring in September 2025, during which they cannot be traded. Regulatory approvals from the TSX Venture Exchange and Australian Securities Exchange remain pending, which is standard for such placements. Finder’s fees totaling approximately A$50,000 were paid in cash and shares to intermediaries involved in the placement.
Looking Ahead
With this capital secured, Southern Cross Gold is well-positioned to advance its exploration and development agenda at Sunday Creek. The upcoming drilling results and economic assessment will be pivotal in shaping investor sentiment and the project’s trajectory. Given the growing demand for antimony and gold, the company’s progress will be closely watched by market participants and strategic stakeholders alike.
Bottom Line?
Southern Cross Gold’s successful raise marks a decisive step toward unlocking the full potential of its strategically vital Sunday Creek project.
Questions in the middle?
- When will the company release the first inferred resource estimate from the drilling program?
- How will global antimony market dynamics influence project economics and funding?
- What are the timelines and risks associated with regulatory approvals and share trading restrictions?
