15/11/2011 - 09:39

Southern Cross Goldfields to raise $5.6m

15/11/2011 - 09:39

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Southern Cross Goldfields to raise $5.6m

Southern Cross Goldfields has launched a $5.6 million capital raising plan to fund gold production studies for its Marda gold mine and an accelerated exploration program at its surrounding tenements.

The company today announced a renounceable 2 for 5 rights issue at 6.5 cents per share to raise the funds, which will be applied to the completion of a feasibility study for Marda and exploration of the Copper Bore VMS gold discovery, both of which are located around 150 kilometres north of Southern Cross.

Patersons Securities has been appointed as lead manager for the rights issue.

Southern Cross announced interim results for its Marda feasibility study last week, which detailed a mine plan based on treating ore from multiple open pits at a 400,000 tonne per annum gold processing facility on-site.

“SXG believes there is significant potential for further new discoveries and resource extensions withing the company’s tenements, which can be unlocked through a re-energised and focused exploration campaign generated by the establishment of a centrally-located treatment facility,” the company said in a statement to the ASX.

“The funds from this rights issue will enable the company to commence this regional exploration program.”

At 9:38AM (WST) Southern Cross shares were largely steady at 8.3 cents.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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