Southern Palladium (ASX:SPD) is raising $20 million through a placement to fund its next stage of Definitive Feasibility Study work and staged mine development at the Bengwenyama Project in the Limpopo province of South Africa.
The company will issue 18.18 million shares at $1.10 per share, representing a 2.7% discount to the 15-day volume weighted average price (VWAP) of $1.13.
The first tranche will see the issue of 6.6 million shares, before the remaining 11.58 million shares are subject to shareholder approval at a general meeting on 28 November for tranche two issuance.
Tranche one is anticipated to settle on 24 October 2025.
Bridge Street Capital Partners acted as the lead manager and bookrunner for this placement.
In conjunction with the placement, Southern Palladium is also conducting a share purchase plan for eligible holders to subscribe for up to $30,000 worth of shares under the same issue price.
The purchase plan is expected to close on 12 November, before tranche two of shares are expected to settle on or around 5 December.
Funds will be used to push the project towards a final investment decision in 2026, with near-term activities including the construction of the box cut and the development of a decline to the ore body.
Executive Chairman Roger Baxter says the equity offering provides the company with a “strong cash runway”.
“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 Bengwenyama project and a highly supportive market outlook for platinum group metals prices,” Baxter says.
“With the completion of this placement, we are pleased to welcome three new global institutional investors.
“We believe the completion of this capital raise future proves Southern Palladium and the company is now well positioned to execute our mine development strategy and unlock the full value from this unique asset.”
Write to Maddison Elliott at Mining.com.au
Images: Southern Palladium
