• Company secures firm investor commitments for a $13 million share placement.
• Funds to finance the definitive feasibility study (DFS) of the Bengwenyama PGM project.
• Project targets annual output of up to 400,000 ounces of platinum group metals.

Southern Palladium announced on Monday, October 20, that it has received firm investor commitments for a share placement worth 20 million Australian dollars (about $13 million). The funds will finance work related to the definitive feasibility study (DFS) of its Bengwenyama platinum group metals (PGM) project in South Africa.

The placement will be completed in two tranches, involving the issuance of 18,181,819 ordinary shares at 1.10 Australian dollars each. The second tranche remains subject to shareholder approval at the company’s annual general meeting scheduled for Friday, November 28.

Completion of the DFS, supported by this financing, marks a key step in advancing the project. The study will update the economic parameters outlined in this year’s prefeasibility study, which estimated a mine with an initial capital cost of $219 million, capable of producing over 200,000 ounces of PGMs annually, rising to 400,000 ounces in a second phase.

Alongside securing the mining license, finalizing the DFS is among the milestones Southern Palladium aims to complete before making a final investment decision that would launch construction.

The Bengwenyama project’s progress comes amid a bullish market for platinum group metals. According to Trading Economics, platinum prices have risen by 70% this year.