Southern Cross Gold has secured firm commitments for a placement of shares to raise a whopping $16 million.
Excited by the discovery of a “spectacular” wide intersection of gold-antimony mineralisation grading at the company’s Sunday Creek gold-antimony project in Victoria, institutional and sophisticated investors were quick to nab shares priced at 58 cents each.
The placement will result in the issue of 27,586,207 new shares being issued.
Funding will be used to add additional drill rigs with up to five diamond drill rigs planned (up from three active drill rigs operating today), to advance exploration at Sunday Creek.
Southern Cross Gold managing director, Michael Hudson, said he welcomed support from existing shareholders and welcomed all new parties to the register in the strongly-supported capital raise.
“We now go forward with an extremely strong shareholder base,” he said.