Southern Cross Gold’s $143M Funding Boost: A Strategic Play in the Antimony-Gold Nexus

Southern Cross Gold Consolidated Ltd. has secured a critical C$143 million funding injection to advance its Sunday Creek Gold-Antimony Project, a high-grade polymetallic deposit in Victoria, Australia. The financing, raised through a private placement of shares and Chess Depositary Interests (CDIs), marks a pivotal step in unlocking the project’s potential amid soaring demand for antimony—a critical mineral increasingly vital for defense, semiconductors, and renewable energy.

A Funding Structure Built for Scale

The C$143 million raise—divided into two tranches closing in May 2025—will fund four key pillars of the project’s development:
1. Drilling: C$53 million for 207 km of drilling to establish an inferred resource by Q1 2027.
2. Decline Development: C$27 million to construct a 1 km underground access ramp, accelerating mineralization access.
3. Economic Assessment: C$4 million for a Preliminary Economic Assessment (PEA).
4. Exploration & Capital: C$59 million for regional drilling, permitting, and working capital over three years.

The placement attracted strong interest from institutional and existing shareholders, underscoring investor confidence in the project’s dual-metal profile. Agents, including Stifel Nicolaus Canada Inc. and Aitken Mount Capital, received 5% cash commissions, reflecting the transaction’s complexity.

The Sunday Creek Project: A High-Grade Gold-Antimony System

The Sunday Creek deposit hosts high-grade gold-antimony mineralization, with antimony contributing 20–24% of in-situ value. Key metrics include:
- Exploration Target: Expanded to 8.1–9.6 million tonnes grading 8.3–10.6 g/t AuEq, containing 2.2–3.2 million ounces of gold equivalent (AuEq).
- Depth Potential: Mineralization confirmed to 1,120 meters depth, with open-ended extensions below this.
- Regional Upside: Over 12 km of strike length, including untested zones like the Christina and Apollo East prospects, where drill hits have returned grades as high as 76.1 g/t AuEq.

Metallurgical tests confirm 93–98% recovery for gold and antimony via conventional methods, with 82–84% of gold in native form. Crucially, the deposit’s proximity to Melbourne—60 km from the city—ensures logistical ease, with freehold landownership (1,054.51 hectares) securing surface infrastructure rights.

Antimony’s Strategic Surge: A Tailwind for Southern Cross

Antimony’s price has skyrocketed from US$11,350 per tonne in early 2024 to over US$55,000 by April 2025, driven by China’s export restrictions and its critical role in semiconductors, lithium-ion batteries, and defense applications. Southern Cross’s project positions it to capitalize on this shift:
- Supply Constraints: China produces ~53% of global antimony, and its export curbs have created a supply vacuum.
- Dual-Metal Economics: The project’s gold-antimony pairing mitigates commodity price risk, with gold prices at US$2,065/oz (as of April 2025) underpinning the AuEq valuation.

Risks and Considerations

While the project’s technical and market fundamentals are compelling, risks remain:
- Regulatory Delays: Permitting timelines could extend the path to production.
- Drilling Uncertainty: The Exploration Target is conceptual; insufficient drilling density could delay resource classification.
- Market Volatility: Antimony prices may fluctuate if China relaxes export controls or alternative supplies emerge.

Conclusion: A Critical Minerals Play with Asymmetric Upside

Southern Cross Gold’s Sunday Creek Project is positioned to become a cornerstone of the critical minerals supply chain. With a 3.2 million ounce AuEq Exploration Target and antimony prices near historic highs, the project’s NPV could surge if drilling confirms the high-grade continuity seen in recent assays.

The C$143 million raise ensures Southern Cross can execute its 2025 priorities—8 drill rigs, 72 km of drilling, and a PEA—without equity dilution. Should the PEA validate a robust economics, the project could attract strategic partners or off-take agreements, further de-risking development.

Investors should monitor drilling results in H2 2025, metallurgical test progress, and antimony’s price trajectory. At current valuations, Southern Cross’s stock offers asymmetric upside: a success at Sunday Creek could revalue the company at multiples of its current market cap, while its antimony exposure aligns with secular demand trends.

In a world hungry for critical minerals, Southern Cross Gold’s strategic pivot to Sunday Creek may prove a masterstroke—one that could redefine its place in the global gold and antimony sectors.