PERTH (miningweekly.com) – ASX-listed Southern Cross Gold will raise A$16-million in a share placement to institutional and sophisticated investors to fund drilling at its Sunday Creek operations, in Victoria.
The junior explorer on Tuesday said it had received firm commitments for the placement of more than 27.5-million shares, at a price of 58c each, representing an 11.5% premium to the company’s 15-day volume weighted average share price and a 1.7% discount to its last trading price.
The shares will be placed under the company’s existing placement capacity.
“We are thankful for the continued support of our existing shareholders and welcome all new parties to our register in this strongly supported capital raise,” said Southern Cross Gold MD Michael Hudson.
“Southern Cross will mobilise up to five diamond drill rigs to the 100%-owned Sunday Creek gold/antimony project in Victoria, up from three active drill rigs operating today, while maintaining joint venture and working capital commitments across all projects. We thank all parties involved, including our lead manager Bell Potter Securities, as we now go forward with an extremely strong shareholder base.”