Completion of Total Magnetic Field (TMF) spectrometry survey at Bengwenyama, confirming the existing structural model of the site based on historical field data
Drilling contract awarded to a leading South African drill services company Geomech (Africa) Pty Ltd, following an extensive tender process
Planning completed for Phase 1 which comprises a 63-hole (~24,500m) diamond drilling programme at Bengwenyama and is scheduled to commence in August 2022
Results from Phase 1 drilling programme is to be used in the Scoping and Pre-Feasibility Studies, which are expected to form the basis of a Mining Right Application
Successfully admitted to the Official List of the ASX and Main Board of the JSE, commencing quotation on 8 June 2022
Raised $19m through the issue of 38m shares priced at $0.50 per share, pursuant to Initial Public Offering (IPO) Prospectus dated 22 April 2022
Oversubscribed IPO round attracted strong demand from institutional investors including Regal, Sprott Holdings and Lowell Capital
IPO solely managed by Bridge Street Capital Partners
Southern Palladium (ASX: SPD, "Southern Palladium" or the "Company") is pleased to announce its quarterly activities summary for the three months ended June 30, 2022.
The Company's primary focus is the advancement of its exploration programme at the Bengwenyama PGM (platinum group metals) project, in which it holds a direct 70% stake.
Following its successful ASX listing, Southern Palladium is well-funded to accelerate a multi-phase exploration programme at Bengwenyama, which already contains at Inferred Mineral Resource Estimate of 18.8Moz (3PGE+Au). The Company is led by an experienced on-ground management team including some of South Africa's experienced mining industry executives.
Bengwenyama PGM Project
The Bengwenyama project is a large shallow advance exploration and predevelopment Platinum Group Metal ("PGM") opportunity situated on the Eastern Limb of the Bushveld Complex in South Africa.
Detailed planning and community engagement initiatives continue to progress well, ahead of the two- phase drilling programmes at the Bengwenyama PGM project. Key project elements underway include property access, employment initiatives, tender processes and exploration related construction projects, in accordance with benchmarks agreed with the Bengwenyama community and in accordance with management's long-term development strategy.
The Company announced the successful completion of a high-definition,helicopter-borne Total Magnetic Field (TMF) gradient and gamma-ray spectrometry survey at Bengwenyama.
The TMF data confirmed the previous structural models for two ore horizons -- the UG2 chromitite and Merensky Reef -- which forms the framework of the 18.8Moz Inferred Mineral Resource.
Figure 1: Imaging shows presence of magnetic bodies over the entire ore area
Page 2 | 6
The imaging data also confirmed an absence of anomalous (Loss of Reef) features in the target area for the Company's pending phase 1 drill programme.
In that context, the results helped underpin confidence in the existing geological structure of the reef upon which the Phase 1 drilling programme has been planned.
September Quarter Planned Activities
Phase 1 drilling programme
Key activities in the September quarter will be highlighted by the commencement of the Phase 1 drilling programme, which will comprise a 63-hole (~24,500m) diamond drill programme scheduled to commence in August 2022. The programme will target the shallowest PGM ore zones less than 500 m below surface which are within the project area of interest .
Preparations at the site are underway after the Company awarded a drill contract to Geomech Africa (Pty) Ltd, following a successful tender process.
Contractor GeoMech has set out its laydown area to commence drilling within the newly- constructed security fence
Geological services will be provided by Minxcon (Pty) Ltd ('Minxcon'), an established mining and exploration consultancy based in South Africa. Minxcon will manage the drilling programme for the Company
The primary focus of Phase 1 drilling is the UG2 horizon at depths of less than 500m (see shaded area in Figure 2 over-page). The drilling will commence on a wider grid spacing and thereafter work toward a closer spaced grid.
This will allow for changes in the drilling programme should the need arise. However, major changes to the programme are not expected following the results of the heliborne magnetic survey.
The Phase 1 programme is designed to support the preparation of a Scoping and Pre-Feasibility Studies at Bengwenyama, which are expected to form the basis of a submission for a Mining Right Application.
Page 3 | 6
Consulting company Minxcon will commence with a Concept Study to increase the understanding on the UG2 and also test the Merensky Reef viability under the currently improved PGM price environment.
Figure 2: Two-phase drilling programme outlay
Southern Palladium has completed an initial public offer of shares and is now dual listed on the Australian (ASX, the primary listing) and Johannesburg Stock Exchanges (JSE).
The Company successfully listed on the ASX on 8 June 2022 having closed a fully underwritten initial public offer ("IPO"), raising $19 million (before costs) (38,000,000 shares at $0.50). Please refer to the Company's Prospectus announced to the ASX on 22 April 2022 for further details regarding the IPO.
Prior to listing Southern Palladium acquired a 70% shareholding in the 100% tenement holder Miracle Upon Miracle Investments (Pty) Ltd.
As at 30 June 2022, Southern Palladium held approximately $17.9 million (31 March 2022: $0.8 million) in cash.
Full details regarding the Company's cash movements during the quarter can be found in the attached Appendix 5B.
The Company's issued capital post IPO is as follows:
Ordinary Fully Paid Shares - Listed on the ASX and the JSE
Ordinary Fully Paid Shares - Restricted
Options Expiring 8 June 2026 Exercise Price $0.875 - Restricted
Performance Rights - Restricted
The IPO was heavily oversubscribed and attracted strong demand from institutional investors including Regal Funds Management Pty Ltd, Sprott Holdings and Lowell Capital.
The IPO was solely managed by Bridge Street Capital Partner.
Page 4 | 6
A summary of the exploration and project evaluation expenditures for the quarter is provided as follows:
For the purpose of ASX Listing Rule 5.3.1, the Company confirms there were no exploration, evaluation and development activities undertaken during the quarter.
For the purpose of ASX Listing Rule 5.3.2, the Company confirms there were no mining production and development activities undertaken during the quarter.
For the purpose of ASX Listing Rule 5.3.5, payments to directors of Southern Palladium Limited during the quarter totalled approximately $109,000. The payments were in respect of directors' salaries, fees and superannuation. Payment to Miracle Upon Miracle Investments (Pty) Limited, a related party of Southern Palladium Limited during the quarter totalled approximately $34,000. The payments were in respect of expenses incurred for the Bengwenyama Project.
Pursuant to ASX Listing Rule 5.3.4, the Company provides its actual expenditure as per those items set out in the "Proposed use of funds raised" statement set out on page 19 of the Company's IPO Prospectus. The actual expenditure relates to the period from 8 June 2022 (being the date of the Company's admission to ASX's Official List) to 30 June 2022.
Use of Funds
Actual use from 8 June
2022 to quarter end
Phase 1 drilling
Phase 2 drilling
Other technical work on
Corporate and other
Costs of the Offer
Total funds raised
The variances are a result of the Company being admitted to the Official List on 8 June 2022, therefore actual expenditure for only 25 days is represented against the two year "use of funds" statement. The Company believes it is on schedule to achieve its objectives as stated in its IPO Prospectus.
June 2022 Quarter - ASX Announcements
This Quarterly Activities Report contains information extracted from ASX market announcements reported in accordance with the 2012 edition of the is Quarterly Activities Report contains information extracted from ASX market announcements reported in accordance with the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" ("2012 JORC Code"). Further details can be found in the following announcements lodged on the ASX:
8 June 2022
Lodgement of Prospectus
8 June 2022
Lodgement of Constitution
8 June 2022
Lodgement of 2021 Financial Statements
8 June 2022
Southern Palladium Successfully Lists on the ASX
15 June 2022
Positive Results from Geophysical Survey
15 June 2022
29 June 2022
Resource Infill Drilling Programme at Bengwenyama
Page 5 | 6
This is an excerpt of the original content. To continue reading it, access the original document here.
Southern Palladium Ltd. published this content on 01 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2022 05:43:03 UTC.