Southern Cross Gold Closes Second Tranche of Private Placement

Core Viewpoint - Southern Cross Gold Consolidated Ltd has successfully closed the second tranche of its private placement, raising approximately C$29.87 million to support the development of the Sunday Creek Gold-Antimony Project in Australia [1][4]. Group 1: Financial Details - The second tranche involved the issuance of 6,636,918 common shares, with 550,000 converted to Chess Depositary Interests (CDIs), at a price of C$4.50 (A$5.10) each [2][10]. - The total gross proceeds from the second tranche amounted to C$29,866,131 [2][7]. - A third tranche is anticipated to close around May 16, 2025, with expected gross proceeds of up to approximately C$24.44 million [4]. Group 2: Project Development - The net proceeds from the placement are earmarked for key milestones in the Sunday Creek project, including C$53 million for drilling to establish an Inferred Resource by Q1 2027, C$27 million for decline development, C$4 million for a Preliminary Economic Assessment, and C$59 million for exploration and working capital [11]. - The Sunday Creek project is located 60 km north of Melbourne and is recognized as one of the significant gold and antimony discoveries in the Western world, with a mineralization structure extending over 12 km [13][14]. Group 3: Strategic Importance - The dual-metal profile of the Sunday Creek project, with antimony contributing 20% of the in-situ value alongside gold, positions the company strategically, especially in light of China's export restrictions on antimony [14]. - Southern Cross Gold's inclusion in the US Defense Industrial Base Consortium and legislative changes related to AUKUS enhance its potential as a key supplier of antimony in the West [14].