Southern Cross Gold shares soar on dual listing plans
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The news: Shares in Southern Cross Gold soared 20% after the ASX-listed gold miner announced its intention to dual list on the Canadian stock exchange.
The numbers: Southern Cross was listed through an initial public offering on the ASX in May 2022, via a spin out of assets from Vancouver-based Mawson Gold. Mawson maintains a 51% holding in Southern Cross.
Shares were trading 20% higher at $2.05 by 12:40pm AEDT.
The context: With around 70% of the company's shareholder base located offshore, Melbourne-based Southern Cross said that a dual Australian-Canadian listing would be the most efficient means to allow both Australian and North American investors to be exposed to returns.
Southern Cross said it will provide further updates on its listing plans, including which of the Canadian exchanges is most appropriate to list on. The dual listing remains subject to ASX and other regulatory approvals.
What they said: Southern Cross Gold's managing director Michael Hudson said "Canadian exchanges are home to over 40% of the world's public mining companies".
"A dual listing by [Southern Cross] in both Australia and Canada will provide direct exposure to a diverse class of global investors, including those North American investors who have over the last seven years directly benefited from the huge capital growth that has come from the Victorian goldfields," he said.
"Additionally, a dual listing will greatly facilitate the planned distribution of Mawson's 51% [Southern Cross] shareholding to North American-domiciled shareholders at the start of Q3 2024."
The source: ASX announcement
