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Highlights
Southern Cross Gold is raising substantial funds to expand its operations in the Victorian Goldfields region.
The company plans to allocate a significant portion of the funds to drilling and resource development.
CEO Michael Hudson emphasizes the strategic importance of the Sunday Creek project.
Southern Cross Gold (ASX:SX2), listed on the Australian Stock Exchange and part of the ASX 200, is leading a substantial capital raise to fund the expansion of its operations in the gold and antimony sector. This move reflects the company's ongoing efforts to enhance its position within the Victorian Goldfields, a region renowned for its rich mineral deposits.
Capital Raising and Strategic Partnerships
Southern Cross Gold is undertaking an upsized private placement to raise. The company has appointed Stifel Nicolaus Canada and Aitken Mount Capital Partners as joint lead managers for the placement, with Jett Capital Advisors acting as a co-manager. The placement will involve the issuance of shares with Chess Depositary Interests (CDIs). The pricing represents a slight discount to the stock's most recent closing prices, indicating the strategic nature of the fundraising effort.
Funding Allocation and Project Focus
The raised capital will be used to support several key activities within the Victorian Goldfields and broader exploration areas. Southern Cross intends to allocate a significant portion of the funds to drilling activities aimed at establishing an inferred resource by the first quarter of 2027. Additionally, part of the capital will be directed toward the permitting and development of a 1km decline to expedite access to mineralisation, ensuring the project's timely progress.
Furthermore, Southern Cross plans to use a portion of the capital for a Preliminary Economic Assessment to better understand the economic viability of its projects. The remaining funds will support regional exploration efforts along the 12km mineralised trend in the Goldfields area, enhancing the company's overall resource potential.
Focus on Geopolitical Factors and Strategic Metals
CEO Michael Hudson has highlighted the strategic significance of the Sunday Creek project, which has drawn considerable attention due to its antimony component. As geopolitical dynamics shift, the company sees its role in the antimony market as increasingly important. Hudson notes that the company’s focus remains on developing a high-grade gold project, but the antimony aspect may position Southern Cross as a critical supplier of this essential metal.
Exploration Projects in Victoria and Queensland
Southern Cross Gold is actively exploring several sites, with a particular focus on two projects located in Victoria and one in Queensland. These projects form the cornerstone of the company's exploration strategy, and the recent capital raise is expected to significantly boost its capacity to develop these assets further.
The company’s market capitalisation currently stands, reflecting investor confidence in its ongoing development and its potential to expand its mineral resources in a tier-one jurisdiction.
By securing full funding for the Sunday Creek work programs, Southern Cross is poised to advance its drilling programs, complete permitting for underground access, and provide vital information for further economic studies. This comprehensive approach underscores the company's commitment to progressing its ambitious goals within the Australian gold and antimony sectors.
