Southern Palladium (ASX:SPD), a company focused on the exploration and development of platinum group metals (PGM), particularly at its Bengwenyama project, has announced it has secured firm commitments to raise A$20 million through a two-tranche placement. The placement involves the issue of 18,181,819 new fully paid ordinary shares at A$1.10 per share. This strategic capital raising aims to accelerate the Definitive Feasibility Study (DFS), staged mine development at Bengwenyama, and advance towards a Final Investment Decision (FID).
The placement garnered material cornerstone investment from the company’s largest shareholder and attracted three new global institutional investors. The issue price represents a modest 2.7% discount to the 15-day Volume Weighted Average Price (VWAP). In addition to the placement, Southern Palladium intends to conduct a Share Purchase Plan (SPP) offering retail shareholders the opportunity to acquire new shares at the placement price, with funds raised capped at A$1 million.
The proceeds from the placement and SPP will be primarily allocated to complete the DFS and facilitate near-term mine development activities at the Bengwenyama PGM project, including construction of a box cut and development of a decline to the ore body, subject to permitting. Executive Chairman Roger Baxter stated that this capital raise provides the company with a strong cash runway to advance the DFS works program and welcomed the new global institutional investors. He anticipates near-term value catalysts, including the expected receipt of the Mining Right and DFS updates, leading to a Final Investment Decision in 2026.
The first tranche of the placement, comprising 6,600,004 shares, will be issued under the company’s existing placement capacity, while the second tranche of 11,581,815 shares is subject to shareholder approval at the Annual General Meeting on 28 November 2025. The SPP is open to eligible shareholders in Australia and New Zealand registered as of 17 October 2025, with an offer booklet to be issued on or around 29 October 2025. Bridge Street Capital Partners acted as Sole Lead Manager and Bookrunner to the Placement.
