Mineral exploration company Southern Cross Gold Consolidated has announced plans to raise approximately C$120m ($86.5m) through the private placement of 26.6 million common shares and/or chess depositary interests (CDIs).
Priced at C$4.50 per common share and A$5.10 ($3.26) per CDI, the securities will be offered to institutional, professional, and other investors.
Southern Cross Gold Consolidated owns the Sunday Creek Gold-Antimony Project near Melbourne, Australia.
The placement is expected to enhance Southern Cross Gold’s financial standing and support the implementation of the company’s strategic business plan.
The net proceeds from the placement are earmarked for various strategic initiatives, including C$53m for drilling, C$27m for decline permitting and development, C$4m for a preliminary economic assessment, and C$36m for exploration and general expenses over the next two years.
The company has appointed Stifel Nicolaus Canada and Aitken Mount Capital Partners as joint lead managers and bookrunners, alongside Jett Capital Advisors as co-manager, to facilitate the placement.
The placement of these securities, which will rank equally with existing common shares and CDIs, is not subject to shareholder approval, as per the Australian Securities Exchange listing rule 7.1.
The pricing of the CDIs and common shares represents a discount to their respective closing prices on 28 April 2025, with the CDIs at approximately 8.9% and the common shares at around 4.1%.
The expected dates for the issuance of the securities are 6 May 2025 for the CDIs and 14 May 2025 for the common shares.
Southern Cross Gold’s securities are currently in a trading halt, with an announcement regarding the placement’s outcome expected before trading resumes on ASX on 1 May 2025.
In August 2024, Mawson Gold signed a binding scheme implementation agreement (SIA) proposing to acquire Southern Cross Gold.
