JSE-listed Southern Palladium has secured firm commitments to raise A$8 million through the issue of 16 million new fully paid shares at an issue price of A$0.50 per share.
The placement was initiated and cornerstoned by one of the Company’s largest shareholders, who will invest a further A$4.6 million into the Company.
The placement funds will be deployed towards advancing the DFS and near-term mine development activities at the Bengwenyama PGM project, ahead of the planned release of an updated PFS incorporating a two-stage project development approach with lower up-front capital costs.
It follows the recent receipt of Environmental Authorisation (EA) for a Mining Right (underground mining) and related infrastructure activities, granted after a comprehensive and compliant public participation process with the South African Department of Mineral and Petroleum Resources (refer ASX Announcement 20 May 2025). Importantly, the EA paves the way for the award of the Mining Right.
Executive Chairman Roger Baxter said: “This strategic placement provides the group with targeted funding support at an important juncture as we execute on the transition of Bengwenyama, a tier-one PGM project globally, towards staged mine development.”
“In particular, we are pleased to have attracted such strong support from our existing institutional investors, led by a cornerstone investment from one of our largest shareholders, while also attracting new institutional investment - marking a vote of confidence for both the quality of the resource and our stated development strategy for the Bengwenyama PGM project.”
“The targeted raise provides the Company with a strong cash runway to implement our near-term project objectives, including accelerating the DFS for a two-stage development pathway with lower upfront costs.”
“In addition, the structure of the raise and the at-market pricing reflects the commitment of the Company and our shareholders to support project development through disciplined capital management.” “Having effectively managed our IPO funds to undertake a +30,000m drill programme, deliver a +40Moz PGM Mineral Resource and +6Moz Ore Reserve, complete a PFS, and prepare a subsequent optimised PFS, we will use funds from this placement to support our transition to DFS and early mine development of the Bengwenyama PGM Project, clearly now one of the last premier greenfield PGM development opportunities in the Bushveld Complex.”
