Shares in Australian junior mining company Southern Palladium experienced a significant increase of 33% on Thursday, following the announcement that the company had successfully raised approximately R100 million (A$8 million) through the placement of 16 million new fully paid ordinary shares at A$0.50 each. The funds are designated to accelerate the development of its Bengwenyama platinum group metals (PGM) project located in South Africa.
The Bengwenyama project, in which Southern Palladium holds a 70% interest, is situated on the Eastern Limb of the Bushveld Complex, a globally significant PGM-rich region. Recent updates indicate a substantial increase in the project’s mineral resources, with a combined total now exceeding 40 million ounces of PGMs, marking a 14% rise from previous estimates. The prefeasibility study outlines a 29-year mine life, targeting annual production of 400,000 ounces of PGMs at an all-in sustaining cost of $800 per ounce.
The capital raised will support ongoing drilling, environmental assessments, and the advancement of the project’s pre-feasibility study. Southern Palladium is also in discussions regarding concentrate offtake agreements and plans to initiate value addition activities, including the development of a 100,000-ton-per-month processing plant in 2025.
The Bengwenyama project is poised to contribute significantly to the global supply of critical metals essential for the clean energy transition, including palladium, rhodium, platinum, and iridium.
