Southern Palladium has raised A$8 million through a strategic placement to accelerate its Definitive Feasibility Study and staged mine development at the Bengwenyama PGM project, backed by a major cornerstone investor.
- A$8 million placement via 16 million shares at A$0.50 each
- A$4.6 million cornerstone investment from a major existing shareholder
- Placement priced at market with a 10.5% premium to 10-day VWAP
- Funds to advance DFS and early mine development at Bengwenyama
- Recent Environmental Authorisation received, paving way for Mining Right
Strategic Capital Raise Strengthens Southern Palladium
Southern Palladium Limited (ASX, SPD) has successfully secured firm commitments to raise A$8 million through a placement of 16 million new shares priced at A$0.50 each. This capital injection is anchored by a substantial A$4.6 million cornerstone investment from one of the company’s largest existing shareholders, signaling strong confidence in the company’s development strategy and resource quality.
The placement was conducted at the closing market price on 6 June 2025, representing a 10.5% premium to the 10-day volume weighted average price (VWAP), and notably, no discount was applied. This disciplined pricing approach reflects Southern Palladium’s commitment to maintaining shareholder value while securing necessary funds for project advancement.
Advancing Bengwenyama Towards Production
The newly raised funds will be directed towards accelerating the Definitive Feasibility Study (DFS) and staged mine development activities at the Bengwenyama Platinum Group Metals (PGM) project, located within South Africa’s prolific Bushveld Complex. This follows the recent receipt of Environmental Authorisation for underground mining and related infrastructure, a critical regulatory milestone that clears the path for the award of the Mining Right.
Southern Palladium’s Executive Chairman, Roger Baxter, emphasized the importance of this capital raise at a pivotal juncture, "This strategic placement provides the group with targeted funding support as we transition Bengwenyama towards staged mine development, a tier-one PGM project globally." The company is preparing to release an optimised Pre-Feasibility Study (PFS) that incorporates a two-stage development approach designed to lower upfront capital costs.
Capital Management and Investor Confidence
Southern Palladium has demonstrated prudent capital management, having previously executed a +30,000 metre drilling program that expanded its Mineral Resource to over 40 million ounces of PGM and Ore Reserves exceeding 6 million ounces. The current placement, conducted under ASX Listing Rules 7.1 and 7.1A, will be completed in a single tranche with shares ranking equally with existing ordinary shares.
The company also attracted new institutional investors alongside existing shareholders, reinforcing market confidence in the project’s potential. Bridge Street Capital Partners Pty Ltd acted as Lead Manager for the placement, which is expected to settle on 18 June 2025 and have shares allotted by 19 June 2025.
Looking ahead, Southern Palladium aims to leverage this capital to meet near-term milestones, including the anticipated award of the Mining Right and the publication of the updated PFS, both of which will be critical in advancing the project towards production readiness.
Bottom Line?
Southern Palladium’s well-supported capital raise sets the stage for key project milestones, but investors will watch closely for Mining Right approval and DFS outcomes.
Questions in the middle?
- When will the Mining Right be officially awarded following Environmental Authorisation?
- How will the two-stage development approach impact overall project economics and timelines?
- What level of dilution might shareholders expect beyond this placement as development progresses?