Southern Cross Gold (ASX: $SXG) merger announcement

Southern Cross Gold Ltd (ASX: $SXG) has announced a proposed merger with Mawson Gold Ltd (TSXV:MAW) to consolidate ownership and establish a dual-listed company structure for the Sunday Creek gold-antimony asset. The resulting entity, to be named Southern Cross Gold Ltd, will be listed on both the Australian Securities Exchange (ASX) and the TSX Venture Exchange (TSXV).

Executive Commentary on Merger and Dual Listing

Tom Eadie, leader of the Independent Board Committee and Non-Executive Chairman of Southern Cross Gold, expressed strong support for the proposal, emphasizing the benefits of the simpler, dual-listed structure. He highlighted the access to broader capital markets, elimination of a perceived major shareholder overhang, and the expected lower cost of equity capital. Michael Hudson, Managing Director of Southern Cross Gold, expressed excitement about leading the combined group as President & CEO, recognizing the transaction's aim to reduce the cost of capital for future development of the Sunday Creek gold-antimony asset.

Summary of Merger and Outlook

Southern Cross Gold's proposed merger with Mawson Gold aims to simplify the corporate structure, access broader capital markets, and reduce the cost of equity capital. The company's focus on maximizing value per share and developing the highest cashflow margin gold mine globally remains unchanged. The merger is expected to lead to immediate benefits for shareholders, enhanced access to capital markets, institutional support, resolution of major shareholder overhang, and management continuity. The proposed transaction is subject to various approvals and is anticipated to take approximately three to four months. The consolidation of ownership and dual listing of the Sunday Creek asset aligns with Southern Cross Gold's ambitions and goals for future growth and development.