Southern Cross Gold Consolidated Ltd. (ASX: SX2) is a gold exploration company and was formed after the merger between Mawson Gold Ltd and Southern Cross Gold Ltd. on the 15th of January 2025. Their flagship project is the 100%-owned Sunday Creek gold project with 19,365 ha of exploration permits.
They also have the Redcastle Project, located 120km north of Melbourne with historical extraction at ~35,000oz at 33g/t. Their other major project is the Mt Isa Project where they hold three granted exploration tenements over 387km2, and a vast majority of the region is under explored.
Private Placement
Southern Cross Gold has announced an upsized private placement, initially set at C$120 million, increasing to C$143 million (A$162 million). This significant increase reflects strong support from shareholders in Canada, Australia and international investors, aiming to accelerate the development of the Sunday Creek Gold-Antimony Project.
The placement will involve the issuance of 31.8 million common shares at a price of C$4.50 per share and/or Chess Depositary Interests (CDIs) at a price of A$5.10 per CDI. The issue price represents a discount to the last closing prices of the shares and CDIs, ensuring attractive terms for investors.
Sunday Creek Gold-Antimony Project
The funds raised from this placement will be primarily used to accelerate the Sunday Creek Gold-Antimony Project. The project has emerged as one of the Western world’s most significant gold and antimony discoveries, with exceptional drilling results over a 12 km mineralized trend.
The Sunday Creek Gold-Antimony Project is a significant mineral exploration initiative located approximately 60 km north of Melbourne, Australia. This project is characterised by its shallow orogenic (epizonal) Fosterville-style deposit, which is contained within 16,900 hectares of granted exploration licenses and one granted retention license.
Southern Cross Gold owns 1,054.5 hectares of freehold land at Sunday Creek, forming the core area around the main drilled zones.
The project is located in a geologically rich area known as the Melbourne Structural Zone within the Lachlan Fold Belt. The rocks in this region are primarily composed of layers of siltstones and sandstones that have been slightly altered over time. The gold and antimony at Sunday Creek are found in ancient shales and siltstones, which also contain a series of mineral-rich veins.
Historically, gold mining at Sunday Creek occurred between 1880 and 1920, producing approximately 41,000 ounces of gold at an average grade of 33 g/t. Modern exploration efforts have focused on both shallow and deeper mineralised zones, revealing significant high-grade gold and antimony intersections. To date, 188 drill holes totalling 76,265 metres have been reported, covering a 1,350-metre strike length between the Christina and Apollo prospects.
The mineralisation at Sunday Creek is unique, featuring a “Golden Ladder” structure, meaning that gold and antimony are found in a series of vein sets that cut across a steeply sloping zone of highly altered rocks.
These veins, which look like the rungs of a ladder, extend from the surface down to depths of over 1,100 metres. High-grade veins containing quartz and stibnite, as well as broader areas of mineralisation, have been discovered, with some sections showing exceptionally high gold content.
The dual-metal profile of the Sunday Creek project, with antimony contributing 20% of the in-situ value alongside gold, enhances its strategic importance. This is particularly relevant given China’s export restrictions on antimony, positioning Southern Cross Gold as a potential key supplier for Western markets. The project’s inclusion in the US Defence Industrial Base Consortium and Australia’s AUKUS-related legislative changes further highlight its strategic value.
Southern Cross Gold plans to use part of the proceeds to conduct extensive drilling, aiming to establish an Inferred Resource by Q1 2027. This will involve 207 km of drilling, which is expected to significantly enhance the project’s resource base and provide a clearer picture of its potential.
The project aims to expand its exploration targets and further define the mineralised zones, leveraging its strategic land position and favourable geological setting to advance this globally significant gold-antimony discovery.
Use of Funds
The net proceeds from the placement will be allocated as follows, C$53 million for drilling to establish the Inferred Resource; C$27 million for decline permitting and development to accelerate access to mineralisation; C$4 million for a Preliminary Economic Assessment; and C$59 million for exploration target expansion, regional exploration along the 12km mineralised trend, working capital, and general administrative expenses over two years.
Overall, the placement is set to not only contribute to the company’s financial position, but to advance their growth prospects allowing them to leverage this strategically important opportunity.
Southern Cross Gold’s President & CEO, Michael Hudson, emphasised the importance of this placement in advancing the company’s goals and thanked the shareholders for their continued support.
