Southern Cross Gold Secures A$162M to Fast-Track Sunday Creek Development

Southern Cross Gold Consolidated Ltd (ASX: SX2) has secured A$162 million (C$143 million) through a significantly upsized placement, strengthening its financial footing as it accelerates development at its flagship Sunday Creek Gold-Antimony Project in Victoria, Australia.

The capital raise—led by Stifel Nicolaus Canada Inc., Aitken Mount Capital Partners, and Jett Capital Advisors—follows strong demand from institutional investors in Australia, Canada, and abroad, and positions SX2 to execute a fully funded, multi-year growth plan. The placement includes the issue of 31.8 million shares at A$5.10 per Chess Depositary Interest (CDI) and C$4.50 per common share, reflecting modest discounts to recent trading prices.

Shares of SX2 were trading 5.71% lower at $5.28 as of 1:38pm AEST, possibly reflecting short-term consolidation following a strong monthly run. The stock remains up 38.95% year-to-date and sits near the top of its 52-week range of $3.29 to $5.87, with a market cap of $1.17 billion.

The funds will be deployed strategically:

• C$53 million for 207 km of drilling, aiming to define an inferred resource by Q1 2027
• C$27 million to permit and develop a 1-km decline, enhancing underground access to mineralization
• C$4 million for a Preliminary Economic Assessment (PEA)
• C$59 million for exploration, working capital, and general administration over three years
   

CEO Michael Hudson emphasized the dual-metal strategic value of Sunday Creek, especially its antimony component, which has drawn increased attention amid geopolitical supply concerns. “This capital raise allows us to expand and de-risk Sunday Creek,” Hudson stated. “We’re well-positioned as a future supplier of a critical metal while pursuing a high-grade gold system in a tier-one jurisdiction.”

The project’s appeal has also been buoyed by its alignment with U.S. defense interests. Southern Cross has been included in the U.S. Defense Industrial Base Consortium, and Australia’s recent AUKUS-related reforms further strengthen the strategic case for antimony development.

With full ownership of over 1,000 hectares of strategic land, a robust balance sheet, and aggressive drilling plans through Q3 2025, Southern Cross Gold is emerging as one of Australia’s most promising gold-antimony developers.