Southern Palladium Faces Shareholder Vote as It Pushes Ahead with Bengwenyama Project

Strategic Capital Raise Bolsters Project Funding

Southern Palladium Limited (ASX, SPD) has successfully secured firm commitments to raise A$20 million through a two-tranche placement of over 18 million new shares priced at A$1.10 each. This capital injection is set to accelerate the company’s Definitive Feasibility Study (DFS) and advance mine development activities at its flagship Bengwenyama platinum group metals (PGM) project in South Africa.

The placement attracted strong backing from Southern Palladium’s largest shareholder alongside three new global institutional investors, signaling growing international confidence in the project’s long-term value. The placement price was set at a modest 2.7% discount to the recent volume-weighted average price, reflecting a balanced approach to shareholder value and capital raising efficiency.

Retail Shareholders Invited to Participate

In addition to the institutional placement, Southern Palladium is offering a Share Purchase Plan (SPP) capped at A$1 million, allowing retail shareholders to acquire new shares at the same price of A$1.10. This move aims to broaden shareholder participation and maintain retail investor engagement as the company progresses towards critical development milestones.

Funding to Drive Key Project Milestones

The funds raised will be deployed to complete the DFS, which is a pivotal step in confirming the technical and economic viability of the Bengwenyama project. Furthermore, the capital will support near-term mine development activities, including the construction of the box cut and the development of a decline to access the ore body, subject to permitting approvals.

Executive Chairman Roger Baxter highlighted that this capital raise provides Southern Palladium with a strong cash runway to accelerate its DFS program and move confidently towards a Final Investment Decision (FID) expected in 2026. The company is also preparing for the anticipated receipt of its Mining Right, a crucial regulatory milestone that will enable further project advancement.

Looking Ahead

While the first tranche of the placement has been completed under existing placement capacity, the second tranche requires shareholder approval at the upcoming Annual General Meeting scheduled for late November. This introduces a degree of execution risk, though the broad institutional support bodes well for approval.

Southern Palladium’s strengthened balance sheet and expanded investor base position it well to unlock the full value of the Bengwenyama asset amid a supportive market outlook for platinum group metals. The coming months will be critical as the company delivers DFS updates and navigates permitting processes that will shape the project’s development trajectory.