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Southern Cross Gold to Undertake a Capital Raising by Private Placement
SOSouthern Company(SO) Newsfile·2025-04-29 00:15

Core Viewpoint - Southern Cross Gold Consolidated Ltd is raising approximately C120,000,000throughaprivateplacementofsecuritiestostrengthenitsfinancialpositionandexecuteitsstrategicbusinessplan[1][11].Group1:PlacementDetails−ThecompanyhasappointedStifelNicolausCanadaInc.andAitkenMountCapitalPartnersPtyLtdasjointleadmanagerstofacilitatethecapitalraising[2].−Theplacementwillinvolveissuing26,666,667commonsharesatC120,000,000 through a private placement of securities to strengthen its financial position and execute its strategic business plan [1][11]. Group 1: Placement Details - The company has appointed Stifel Nicolaus Canada Inc. and Aitken Mount Capital Partners Pty Ltd as joint lead managers to facilitate the capital raising [2]. - The placement will involve issuing 26,666,667 common shares at C4.50 each and/or Chess Depositary Interests (CDIs) at A5.10each[2].−TheissuepriceforCDIsrepresentsanapproximate8.95.10 each [2]. - The issue price for CDIs represents an approximate 8.9% discount to the last closing price, while the common shares represent a 4.1% discount [4][5]. Group 2: Use of Proceeds - The net proceeds from the placement are expected to be allocated as follows: - C53 million for drilling to establish Inferred Resource by Q1 2027 - C27millionfordeclinepermittinganddevelopmenttoaccelerateaccesstomineralization−C27 million for decline permitting and development to accelerate access to mineralization - C4 million for Preliminary Economic Assessment - C$36 million for exploration target expansion and working capital [10][18]. Group 3: Strategic Importance - Southern Cross Gold controls the Sunday Creek Gold-Antimony Project, which is significant due to its dual-metal profile and strategic value in light of China's export restrictions on antimony [14][15]. - The project has shown exceptional drilling results and is positioned as a potential key supplier of antimony in the Western world [14][15]. - The company is well-positioned to advance this discovery with a large drill program planned through Q3 2025 [16].