The entirely self-funded gold explorers not only see themselves as driving the Victorian Goldfields renaissance, but they plan to bring a whole new model for delivering shareholders the news they need, faster.

Sitting alongside world leading gold mines such as Agnico Eagle’s (TSX:AEM) Fosterville and Mandalay Resources’ (TSX:MND) Costerfield, Australia’s next gold company plans to close its IPO as scheduled on April 21 and debut on the ASX in early May, following an offer of between 40 million and 50 million shares at 20 cents per share that is progressing well.  With the company in the final stages of completing its capital raising, the Company intends to list on the ASX under the ticker code SXG.

Joint lead manager Sean Sandilands says there’s a lot that separates Southern Cross from so many other IPO’s.

  • It’s been spun out of a TSX listed entity – Mawson Gold Ltd.
  • The drilling has been funded all the way through the IPO process
  • It Enters the IPO with multiple bona-fide discoveries.
  • These include a few attention grabbers:
  • Flagship Sunday Creek Project in Victoria already has eight 100 gram x metre intercepts, then there is the Redcastle and Whroo joint ventures in Victoria and the Mt Isa Project in Queensland.
  • It has a 10% holding in Nagambie Resources (ASX:NAG), which grants it a right of first refusal over a 3,300 sq km tenement package.

“We understand some companies are green fields where no meaningful exploration has been undertaken, but it is no secret that investors and the market respond better to more advanced projects that deliver results quickly after listing – the market just loves news flow,” Sandilands said.

“When you can present something that already has multiple discoveries and where the drill rig has been operating constantly for months with a number of drill results to release within a few weeks after the company lists, it is a massive, massive advantage.”

 

Drill bit spinning during IPO process

According to Sandilands, Southern Cross is what the modern exploration company needs to look like – well established, diamond drilling undertaken and the ability to deliver results soon after listing.

“I think this has probably increased the expectation of our clients that a company coming into an IPO needs to be able to provide meaningful results to shareholders faster than has historically been the case, and I have no problem with that,” Sandilands adds.

Michael Hudson, Southern Cross founder and managing director said roughly $6m has been spent on drilling and exploration across the project portfolio over the past two years.

“The drill rig has continued to spin right through the IPO process with results available soon after listing,” he said.

By extrapolating prior drilling performance, Sandilands believes the market can reasonably anticipate between 8 to 10 holes will be returned with assays soon after making its ASX debut.

This article was developed in collaboration with Southern Cross Gold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.