Southern Cross Gold Closes First Tranche of Private Placement

Company Overview - Southern Cross Gold Consolidated Ltd (TSXV: SXGC) (ASX: SX2) has successfully closed the first tranche of its private placement, raising C$88,799,220 through the issuance of 19,733,160 common shares and Chess Depositary Interests (CDIs) at a price of C$4.50 (A$5.10) per share [1][2][4] Placement Details - The first tranche of the placement involved the issuance of 16,171,050 CDIs and 3,562,110 common shares, with gross proceeds of A$82,472,355 and C$16,029,495 respectively [5][8] - A second tranche is anticipated to close around May 14, 2025, aiming for additional gross proceeds of approximately C$54,308,502 [4] Use of Proceeds - The net proceeds from the placement are earmarked for key milestones in the development of the Sunday Creek Gold-Antimony Project, including: - C$53 million for drilling to establish an Inferred Resource by Q1 2027 - C$27 million for decline development to enhance access to mineralization - C$4 million for a Preliminary Economic Assessment - C$59 million for exploration target expansion and working capital over three years [9] Project Significance - The Sunday Creek project, located 60 km north of Melbourne, Australia, is recognized as a significant gold and antimony discovery, with a mineralization structure extending over 12 km [13][14] - The dual-metal profile of the project, with antimony contributing 20% of the in-situ value, positions it strategically in light of China's export restrictions on antimony, a critical metal for defense and semiconductor applications [14] Insider Participation - Mr. Darren Morcombe, an insider of the company, subscribed for 980,392 CDIs under the first tranche, increasing his total holdings to 28,991,112 common shares, representing approximately 11.91% of the outstanding shares [11][12]