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Sydney- and Johannesburg-listed platinum group metals (PGMs) company Southern Palladium as locked in a $20-million raise to ramp up work at its Bengwenyama PGM project in Limpopo, Investor Stream reports.
Southern Palladium owns 70% of and the Bengwenyama PGM project and the Bengwenyama Community 30%.
Located on the eastern limb of South Africa's well-endowed Bushveld Complex, the project has a resource of 40-million ounces of platinum group elements and gold, with shallow ore.
The project is moving toward development, including a staged approach to lower capital expenditure, with a prefeasibility study showing strong economics, including a $1-billion net present value and a three-year to five-year payback period.
The recent placement attracted good shareholder support, which executive chairperson Roger Baxter said future-proofed Southern Palladium on its journey towards a final investment decision in 2026. With fresh capital, a tight register, and momentum building into 2026, Southern Palladium looks ready to take Bengwenyama from study to shovel, Investor Stream commented.
In the Tubatse and Sekhukhune district municipalities, it covers 5 280 ha on the farms Nooitverwacht 324 KT and Eerstegeluk 327 KT.
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.
As has been reported by Mining Weekly, 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 6E (platinum, palladium, rhodium, ruthenium, iridium and gold) ounces recovered is estimated at 2.22-million ounces over the 23-year mine life.
Stage 1 and 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 4 or possibly sooner for Stage 2). A well-established, standard processing technology has been adopted and optimised using current 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.
An environmental guarantee has been lodged with South Africa's Department of Mineral and Petroleum Resources for the development of the project for future rehabilitation of the disturbed area.
Project delivery includes the recent start of a metallurgical and geotechnical drill programme of about 10 000 marking the next phase of definitive feasibility study (DFS) work, in line with the company's stated development strategy for staged mine development.
The guarantee follows an extensive consultation and execution process with Southern Palladium's insurance counterparty and government representatives, and reflects the company's rigorous approach to ensure the highest standards of regulatory compliance for mine development.
"We remain well engaged with key stakeholders and continue to work towards mining right approval, alongside the advancement of our comprehensive DFS works programme in the coming months," MD Johan Odendaal has been quoted as saying.