Southern Cross Gold (ASX: $SXG) rights issue announcement

Southern Cross Gold Ltd (ASX: $SXG) has announced a fully underwritten pro-rata entitlement offer, aiming to raise approximately $10.23 million before costs. The Rights Issue will offer one (1) new fully paid ordinary share at $1.82 per share for every thirty-three (33) fully paid ordinary shares held at the Record Date. SXG's major 50.5% holder, Mawson Gold Ltd, is set to cornerstone the rights issue by acquiring its full entitlement. The Rights Issue is fully underwritten by Springtide Capital Pty Ltd and Firelight Investments Ltd, associated with Darren Morcombe and Pierre Lassonde, for the total amount of the rights issue. All Directors intend to take up their entitlements in full. The funds raised will be utilized for the continued drilling of the Sunday Creek gold-antimony project over the next year and for general working capital.

Executive commentary on the rights issue

The fully underwritten Rights Issue exclusively provides existing shareholders continued exposure to the exciting SXG high-grade gold growth story. Funds from the rights issue will be used to continue to drill the 100% owned Sunday Creek gold-antimony project over the next year (and expand capacity). The Company's drilling plans will continue with the three clear objectives to demonstrate grade, volume, and scale. With support from some of the biggest names in the gold industry, with all Directors intending to participate in full and SXG's largest shareholder, Mawson Gold Ltd, committing to take up its entitlement to cornerstone the issue, we expect strong take-up in this fully underwritten Rights Issue.

Summary of Southern Cross Gold (ASX: $SXG) rights issue

Southern Cross Gold Ltd (ASX: $SXG) has announced a fully underwritten pro-rata entitlement offer to raise approximately $10.23 million before costs. The Rights Issue, priced at $1.82 per share, will offer one (1) new fully paid ordinary share for every thirty-three (33) fully paid ordinary shares held at the Record Date. The major shareholder, Mawson Gold Ltd, is set to cornerstone the rights issue, and the Rights Issue is fully underwritten by Springtide Capital Pty Ltd and Firelight Investments Ltd. The funds raised will be used for the continued drilling of the Sunday Creek gold-antimony project over the next year and for general working capital. The Company expects strong take-up in this fully underwritten Rights Issue, supported by the commitment of existing shareholders and major industry names.