SOUTHERN PALLADIUM: a new kid on the PGM block

Southern Palladium is a public company limited by shares, incorporated in Australia and registered in New South Wales under the provisions of the Corporations Act on 4 December 2020, with the name “Southern Palladium Limited”. The Company is domiciled in Australia.

The Company intends to be engaged in advanced stage platinum group minerals exploration and development through its proposed acquisition of a 70% interest in a South African private company, Miracle Upon Miracle Investments (MUM), which Acquisition will be completed immediately prior to the Listing. The remaining 30% of MUM will remain held by a company, Nurinox Investments, wholly-owned by the Bengwenyama-ya-Maswazi community, being the community resident on and around the farms Eerstegeluk 327KT and Nooitverwacht 324KT in Limpopo Province, South Africa. MUM holds 100% of the preferent prospecting right relating to the Bengwenyama platinum group metals (PGMs) project, located in the heart of the Eastern Limb of the Bushveld Complex in South Africa (Project or Bengwenyama Project).

Southern Palladium was formed specifically to undertake the Acquisition. The Directors believe that the Company provides a suitable platform both to raise the necessary financial resources and to provide and/or procure the necessary technical resources required to advance the Project in partnership with the Bengwenyama Community. The Board and Management have a proven track record in the minerals industry and in PGMs, comprising platinum, palladium, rhodium, ruthenium, iridium and osmium.

The Prospecting Right permits MUM to explore for platinum, palladium, rhodium, ruthenium, osmium, iridium, gold, copper, nickel, chrome, cobalt and silver. The Project is an advanced stage exploration project focussed on PGM mineralisation on the Properties which are located south of the Anglo Platinum Modikwa property.

Two economic reefs – the Merensky and UG2 reefs – occur on the Properties, which extend from surface to a depth of 1,100m over a distance of 10km. Both these reefs are primary economic deposits exploited by other platinum mining companies for PGMs and base metals.

Based on the volume, grade and depth of the reefs, and the similarity with other projects and operations in the area and other parts of the Bushveld Complex, the Mineral Resource is deemed to have reasonable prospects for eventual economic extraction. Based on the Exploration Target ranges, over and above the Inferred Mineral Resource, the project also has additional upside potential with an additional 134-201 Mt at 3.5-5.2 g/t 3PGE+Au in Exploration Target.

A dual phase drilling programme for some 38,000m and study work are planned with the aim to upgrade the Mineral Resource classification in areas where the UG2 occurs at less than 500m below surface. In addition, the conversion of existing Exploration Target material to Inferred Mineral Resources, is earmarked. This planned upgrade of the shallower portions of the UG2 will facilitate downstream economic studies and possibly the conversion of Mineral Resources to Ore Reserves, potentially culminating in the submission of a mining right application. The progression of Mineral Resources to increasing levels of confidence is dependent on the outcome of infill drilling.

The Offer, which will raise between A$17 million and A$19 million, is expected to generate future opportunities for the development of the Company, including:

  • providing the Company with funding to finance MUM’s exploration program and fund working capital and other operational expenses, including the costs associated with operating the Company’s business and the Listings;
  • providing the Company with a liquid market for its Shares and an opportunity for others to invest in the Shares;
  • providing the Company with the benefits that flow from being a listed company on the ASX and the JSE; and
  • providing an environment for the Company to potentially access further capital for future funding needs.

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