Southern Cross Goldfields and Polymetals Mining have joined forces to create a strong Australian junior with $11 million in cash, a 1.6 million ounce gold resource inventory and a flexible platform for growth.
The new Southern Cross Goldfields shares were scheduled to commence trading on the ASX on Wednesday, August 21. The merger will create a strengthened Australian junior resources company, well placed for growth with a diversified asset base and strong balance sheet. This gives it significant flexibility and optionality in terms of exploration and development pathways, as well as the ability to take advantage of acquisition and divestment opportunities.
The key assets of the enlarged company include advanced gold projects at Marda in Western Australia and Mount Boppy in New South Wales, a fully-permitted 600,000 tonnes/annum CIL gold plant at Sandstone in WA, a 1.6 million ounce mineral resource inventory and a prospective exploration portfolio covering 4930sqkm in WA and NSW.
Southern Cross’ managing director Glenn Jardine says the decision by the two companies to move proactively to combine their businesses five months ago had put them significantly ahead of the curve, particularly taking into consideration the volatility seen in the gold sector in recent times and the extremely challenging market conditions now facing companies seeking to maintain market relevance and deliver growth for their shareholders.
“Shareholders in both companies have voted overwhelmingly in favour of the key elements required to complete the merger, recognizing that it represents a compelling combination of two companies with complimentary assets,” Glenn Jardine says. “The result is a company which is in a unique space in the current market – with cash and liquid assets of around $14 million, strong assets and a highly regarded management team who have widely recognized skills in developing and operating junior gold projects.”
He says the merger is one of several significant transactions completed by both companies in recent years and cements the merged entity’s position as an emerging gold producer following the acquisition of the Sandstone gold plant and completion of the Marda Feasibility Study and Mt Boppy studies.