Southern Palladium intends to conduct a share purchase plan (SPP) to provide its retail shareholders with the opportunity to acquire new shares at $1.10 per share.
The funds raised will be capped at a maximum of $1.0m and be deployed to complete the definitive feasibility study and achieve the final investment decision for near-term mine development activities at the Bengwenyama PGM project, including construction of the box cut and development of a decline to the ore body.
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The company has also secured firm commitments to raise A$20 million through the issue of 18,181,819 million new fully paid ordinary shares in a two-tranche placement at an issue price of A$1.10 per share.
The placement was supported by three new global institutional investors and the company’s largest shareholder. In addition, the placement received widespread support from the company’s existing institutional and high net worth shareholders.
Executive chairman Roger Baxter said: “This strategic capital raise provides Southern Palladium with a strong cash runway to accelerate our DFS works program as we advance towards mine development at the Bengwenyama PGM project.
“The placement price and quantum reflect growing interest by global investors in Southern Palladium’s long-term value proposition, which in our view is driven both by the high quality of the Bengwenyama project and a highly supportive market outlook for PGM prices.
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“With the completion of this placement, we are pleased to welcome three new global institutional investors. The accompanying share purchase plan will also give retail investors the opportunity to acquire additional shares at the placement price.
“We believe the completion of this capital raise future proofs Southern Palladium and the company is now well positioned to execute our mine development strategy and unlock the full value from this unique asset.
“We look forward to reporting on multiple near-term value catalysts, led by the expected receipt of the mining right and key project development updates for the DFS leading up to a final investment decision in 2026.”