Mawson Announces Update to Southern Cross Gold Spin-Out
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Vancouver, Canada — Mawson Gold Limited (“Mawson”) or (the “Company”) (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF - https://www.commodity-tv.com/ondemand/companies/profil/mawson-gold-ltd/) is pleased to update the business plan of Southern Cross Gold Pty Ltd (“Southern Cross”), the Company’s Australian asset spin-out.
Southern Cross holds the 100%-owned Sunday Creek project in Victoria and Mt Isa project in Queensland, the Redcastle and Whroo joint ventures in Victoria, Australia, and a strategic 10% holding in the Australian Securities Exchange (“ASX” or “ASX Limited”) listed Nagambie Resources Limited (ASX:NAG) (“Nagambie”) which grants it a Right of First Refusal over a 3,300 square kilometre tenement package held by Nagambie in Victoria. Mawson currently owns 84.6% of Southern Cross, whose intention is to list via an Initial Public Offering (“IPO”) for admission to the official list of ASX Limited, expected to be in Q2 2022.
Southern Cross is now self-funding and in the final stages of preparing its Prospectus for listing on the ASX, which it expects to lodge with the Australian Securities and Investments Commission (“ASIC”) in March 2022. Subject to Board and regulatory approvals, Southern Cross will seek to raise an additional A$8m (min) and A$10m (max) the IPO, at which point Mawson’s holding in Southern Cross is anticipated to dilute to approximately 58% based on Southern Cross’ then issued capital.
After analysis of Mawson’s entire portfolio and business plan, and following ongoing dialogue with key shareholders, the Mawson Board has decided it is in the best interest of Mawson, at this time, to hold Mawson’s shareholding in Southern Cross, rather than distributing those shares in-specie to individual Mawson shareholders. Accordingly, the ASX has re-issued its no objection to Southern Cross seeking to list on ASX.
The Board believes holding the shares is compelling for the following reasons:
- Provides future funding and corporate finance optionality for Mawson, whose focus remains on the development and exploration of its Nordic businesses, centred on its million-ounce equivalent Rajapalot gold-cobalt inferred resource in Finnish Lapland.
- Provides look through value for Mawson, and a larger capital base to attract and retain institutional investors.
- Tightens the Southern Cross capital structure, at least during its formative two years, to allow execution of the Southern Cross business plan and thus improve embedded value to all Mawson shareholders.
Under ASX listing rules, Mawson’s shareholding in Southern Cross will be classified as ‘restricted shares’, and thus escrowed for 24 months following the IPO. The escrow does not affect voting rights over Mawson’s shareholding in Southern Cross. Southern Cross’ business plan is subject to successfully completing the proposed IPO including required regulatory approvals.
Board of Directors
On 11 February 2022, Southern Cross appointed its Australian-based board of directors, two of whom also sit on the Mawson Board. The Southern Cross Board experience base reflects that of an ambitious, technical, and responsible exploration company.
Tom Eadie | Non-Executive Chairman
- Geophysicist, mining executive and company director with over 40 years' experience in the resources industry.
- Former Executive Chairman of Copper Strike, founding Chairman of Syrah Resources and previously Executive General Manager – Exploration and Technology at Pasminco Ltd. Past Board member of the Australasian Institute of Mining and Metallurgy & the Australian Mineral Industry Research Association.
- Current Board member of Strandline Resources Ltd and Alderan Resources Ltd. He is a Fellow of the Australasian Institute of Mining and Metallurgy.
Michael Hudson | Managing Director
- Geologist, explorationist, entrepreneur and company director with 30 years of experience, who as an executive, has raised >$200m to finance and develop mineral exploration properties.
- Global career spanning Australia, Peru, Argentina, Mexico, Finland, Spain, Portugal and Sweden for major (Pasminco Ltd) and junior mining companies. He has been integral team member behind multiple mineral discoveries.
- Founder and director of Mawson, Hannan Metals Ltd and a director of Sixty-Six Capital. He is a Fellow of the Australasian Institute of Mining and Metallurgy and Member of both the Society for Economic Geologists and Australian Institute of Geoscientists.
David Henstridge | Non-Executive Director
- Geologist with over 50 years’ experience in the mining industry including over 30 years in public markets.
- Track record of exploration discovery before moving into Canadian capital markets in 1993, where he has been associated with Companies raising > $200 million for exploration and project development, and a co-founder of five capital pool Companies. #BBD0E0 »