JOHANNESBURG (miningweekly.com) – Sydney- and Johannesburg-listed platinum group metals (PGMs) development company Southern Palladium has secured commitments to raise equity capital of A$8-million to advance the staged mine development at Bengwenyama, one of the last premier greenfield PGM development opportunities in the Bushveld Complex.

Firm commitments have been received for a placement of 16-million new fully paid ordinary shares at A$0.50 a share, with A$4.6-million arising from cornerstone shareholders.

The capital raise provides balance sheet strength to advance the next phase of definitive feasibility study (DFS) work at Bengwenyama, with minimal dilution and changes to the group's capital structure.

The placement funds, which will be deployed towards advancing the DFS for the Bengwenyama PGM project, follows the recent receipt of environmental authorisation paving the way for an underground mining right and related infrastructure activities.

The targeted raise provides a strong cash runway to implement near-term project objectives, including accelerating the DFS for a two-stage development pathway with lower upfront costs, Southern Palladium executive chairperson Roger Baxter, a former CEO of Minerals Council South Africa, stated in a JSX Stock Exchange News Services announcement.

"We will use funds from this placement to support our transition to DFS and early mine development," Baxter explained. 

The capital raise will be through the sale of 16-million new ordinary shares at A$0.50 a share.

The placement will be conducted in one tranche with the listed shares on an equal footing with the existing fully paid ordinary shares on the Australian Stock Exchange. Bridge Street Capital Partners acted as lead placement manager.