Sydney- and Johannesburg-listed platinum group metals (PGMs) company Southern Palladium has locked in a A$20-million raise to ramp up work at its Bengwenyama PGM project in South Africa’s Limpopo province, Investor Stream reports.

Southern Palladium owns 70% of the Bengwenyama PGM project and the Bengwenyama Community own 30% of it.

Alongside Southern Palladium’s largest shareholder, as well as participation from existing institutional and high-net-worth investors is this two-tranche share placement.

The capital raise positions the company to accelerate the definitive feasibility study (DFS) and progress towards the final investment decision to advance near-term mine development, Southern Palladium pointed out on Monday, October 20.

Involved in the placement are 18 181 819-million new ordinary shares at A$1.10 a share, which represents a modest 2.7% discount to the 15-day volume weighted average price.

Southern Palladium also intends to conduct a share purchase plan to raise up to A$1-million by offering eligible retail shareholders the opportunity to acquire new shares at the same price as the placement.

Funds raised will support completion of the DFS and near-term mine development activities, including construction of the box cut and development of a decline to the orebody subject to permitting.

The milestones, including the expected award of the mining right and updates on the DFS work programme.

“This strategic capital raise provides Southern Palladium with a strong cash runway to accelerate our DFS works programme as we advance towards mine development at the Bengwenyama PGM project,” executive chairperson Roger Baxter stated in the release to Engineering News & Mining Weekly.



The completion of this capital raise future-proofs Southern Palladium, which is now positioned to execute its mine development strategy.

The shallow Bengwenyama project is on the eastern limb of South Africa’s well-endowed Bushveld Complex, which contains about 72% of the world’s PGM resources.

The property hosts upper group two (UG2) and Merensky reefs, which span over a downdip stretch of 10 km to a depth of 1 100 m.

Southern Palladium is focused on the UG2 reef of the project, which is close to existing mining operations as well as essential infrastructure.

With fresh capital, a tight register, and momentum building into 2026, Southern Palladium looks ready totake Bengwenyama from study to shovel, Investor Stream commented.



The optimised prefeasibility study points to a staged production approach that involves predevelopment of blocks using off-reef twin haulages, drives and centre gulley raises.

Stage 1 proposes a production rate of 1.2-million tonnes a year from the South decline only, expanding after four years to 2.4-million tonnes a year in Stage 2 with the introduction of the north decline.

Stage 1 is expected to deliver more than 200 000 oz/y of PGMs in concentrate. Total six element (6E) ounces of platinum, palladium, rhodium, ruthenium, iridium and gold recovered is estimated at 2.22-million ounces over the 23-year mine life.

Stage 1 and Stage 2 total 6E production is estimated at 7.5-million ounces over the total 33-year life-of-mine, averaging more than 400 000 oz/y from year four or possibly sooner for Stage 2.

A well-established processing technology has been adopted and optimised using state-of-the-art two-stage mill-and-float infrastructure.

PGM concentrates are expected to be processed at existing downstream refining facilities in South Africa. The company is also exploring off-site processing for Stage 1 to further reduce initial capital requirements.

Peak funding is estimated at $279-million. Stage 1 is estimated at $219-million while ongoing/expansion capital – Stage 1 and 2 – is estimated at $300-million.