Southern Cross Gold Consolidated Ltd Launches C$120 million Capital Raise

Highlights:

• Southern Cross Gold seeks to raise C$120 million via private placement.
   
• Funds will support a major drilling program and decline development at Sunday Creek.
   
• Securities are offered at up to 8.9% discount to recent market prices.

Capital Raising to Strengthen Growth Pipeline

Southern Cross Gold Consolidated Ltd (ASX: SX2) has initiated a major capital raising effort, aiming to secure approximately C$120 million through a private placement. At the time of writing, the company has engaged Stifel Nicolaus Canada Inc. and Aitken Mount Capital Partners Pty Ltd as joint lead managers, alongside Jett Capital Advisors as co-manager, to conduct the placement on a “best efforts” basis.

The offering will consist of approximately 26.67 million common shares at C$4.50 per share and/or CHESS Depositary Interests (CDIs) at A$5.10 per CDI. These securities represent discounts of 4.1% and 8.9% to the respective last closing prices of the common shares and CDIs as of April 28, 2025.

Funds to Fuel Strategic Development

Proceeds from the placement are earmarked for aggressive project advancement. Southern Cross Gold plans to allocate:

• C$53 million for a 207 km drilling campaign aimed at establishing an Inferred Resource by Q1 2027
   
• C$27 million for permitting and developing a 1 km decline
   
• C$4 million for a Preliminary Economic Assessment
   
• C$36 million for regional exploration, target expansion, and general working capital

The placement aligns with the company’s broader strategic plan to rapidly advance its Sunday Creek Gold-Antimony Project in Victoria, Australia.

Placement Timeline and Regulatory Approvals

The first tranche of CDIs is expected to be issued by May 6, 2025, and the common shares by May 14, 2025. The offering remains subject to approvals from the TSX Venture Exchange and compliance with relevant securities laws in Canada and Australia.

Southern Cross Gold’s securities are currently in a trading halt, with the company expected to release placement results before ASX trading opens on May 1, 2025.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com