ASX-listed Southern Palladium has secured firm commitments to raise A$20 million through a two-tranche placement, supported by three new global institutional investors alongside the company’s largest shareholder, as well as strong participation from existing institutional and high-net-worth investors.
The capital raise positions the company to accelerate the Definitive Feasibility Study (DFS) and progress towards the Final Investment Decision to advance near-term mine development at its Bengwenyama Platinum Group Metals (PGM) project in South Africa.
The placement comprises 18,181,819 million new fully paid ordinary shares at A$1.10 per share, representing a modest 2.7% discount to the 15-day Volume Weighted Average Price (VWAP).
Southern Palladium also intends to conduct a Share Purchase Plan (SPP) to raise up to A$1 million, offering eligible retail shareholders the opportunity to acquire new shares at the same price as the Placement.
Funds raised will support completion of the DFS and near-term mine development activities - including construction of the box cut and development of a decline to the orebody (subject to permitting) - while advancing the Company towards its FID.
The capital raise will significantly strengthen Southern Palladium’s balance sheet ahead of key near-term milestones, including the expected award of the Mining Right and updates on the DFS work programme.
“This strategic capital raise provides Southern Palladium with a strong cash runway to accelerate our DFS works programme as we advance towards mine development at the Bengwenyama PGM project,” said Executive Chairman Roger Baxter.
“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 project and a highly supportive market outlook for PGM prices”. Baxter added.
He noted that, with the completion of this Placement, Southern Platinum is 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. The completion of this capital raise future proofs Southern Palladium, and the Company is now well positioned to execute its mine development strategy and unlock the full value of this unique asset.
Placement and SPP details
- Total raised: A$20 million (before costs)
- Shares issued: 18,181,819 at A$1.10 per share
- Discount: 2.7% to the 15-day VWAP of A$1.13
- Tranche 1: 6,600,004 shares under ASX Listing Rule 7.1A
- Tranche 2: 11,581,815 shares subject to approval at the AGM on 28 November 2025
- SPP: Up to A$1 million; eligible shareholders (as at 7:00pm AEDT, 17 October 2025) may apply for up to A$30,000 in new shares
- Lead Manager: Bridge Street Capital Partners
