- Southern Cross Gold (SXG) taps investors for $16 million to advance exploration at its Sunday Creek project in Victoria
- Yesterday the company reported the latest results from Sunday Creek included a 305.8 metre intersection grading 2.4 grams of gold per tonne
- Following the results, SXG is looking to add two more drill rigs to site for a total of five to accelerate exploration
- To fund this, the company launched a placement and has received firm commitments for 27.5 million shares at 58 cents each
- SXG shares resumed trade and are up 12.7 per cent trading at 66.5 cents at 3:00 pm AEDT
Southern Cross Gold (SXG) has tapped investors for $16 million to advance exploration at its Sunday Creek project in Victoria.
Yesterday, the company announced the latest drilling results from Sunday Creek, which included a 305.8-metre intersection grading 2.4 grams per tonne (g/t) gold equivalent (1.6 g/t gold and 0.5 per cent antimony).
Drilling tested under the Rising Sun shoot and hit continuous mineralisation leading SXG to extend the hole to 923.7 metres.
Sixty seven per cent of the hole has been assayed so far with more than 300 metres of mineralisation identified.
It is the deepest drill hole on the project and has returned 12 high-grade intercepts of up to 20 g/t gold, including five intersections over 100 g/t gold.
There are three drill rigs operating on site and now, the company is looking to raise capital to add two more drill rigs to advance exploration.
Southern Cross said it secured firm commitments for a placement comprising 27.5 million shares at 58 cents each.
The issue price is an 11.5 per cent premium to the 15-day volume weighted average price and a 1.7 per cent discount to the last traded price prior to today’s announcement.
Bell Potter Securities acted as lead manager to the placement and as such will be issued three million options exercisable at 87 cents and expiring in three years from the date of issue.
The directors of Southern Cross also participated in the placement for a total of $110,000, however this is subject to shareholder approval.
SXG shares resumed trade and were up 12.7 per cent at 66.5 cents at 3:00 pm AEDT.