TIDMPXC
RNS Number : 0700O
Phoenix Copper Limited
08 June 2022
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
8 June 2022
Phoenix Copper Limited
("Phoenix" or the "Company")
Engagement of broking syndicate to place floating rate corporate
bonds due 2032
Phoenix Copper Limited (AIM: PXC; OTCQX ADR: PXCLY), the AIM
quoted USA focused base and precious metals emerging producer and
exploration company, is pleased to announce that it has engaged a
syndicate of brokers to execute the placement of floating rate
corporate bonds (the "Bonds") in order to finance the construction
and development of the Empire Open Pit Copper Mine in Idaho, USA
(the "Empire Open Pit Mine") (the "Bond Placement").
Highlights
-- Syndicate of brokers and advisers engaged to execute the Bond Placement
o Joint lead brokers in the US: EAS Advisors LLC, acting through
Odeon Capital Group LLC, and Tigress Financial Partners LLC
o Joint lead brokers in the UK: WH Ireland Ltd and Panmure
Gordon (UK) Ltd
-- Expected minimum gross raise of $60 million
-- The Bonds will have a denomination of $25,000 each, will be
non-convertible and repayable after 10 years
o Non-dilutive to existing shareholders
-- The Bonds will pay a semi-annual coupon linked to the copper
price with a minimum of 7.5% per annum (at a $3.60 / lb or lower
copper price) and a maximum of 20% per annum (at a $11.95 / lb or
higher copper price)
-- It is intended to list the Bonds on The International Stock
Exchange ("TISE") in the Channel Islands as soon as practical after
issue
Richard Wilkins, Chief Financial Officer of Phoenix, commented :
"I am excited to announce our plans for this relatively novel form
of mine finance, and to be working with such an experienced team of
joint lead brokers, as well as the other members of the broking and
advisory syndicate. With Tigress as one of the joint lead brokers,
we also have one of the leading diversity broker dealers in the US,
underscoring our commitment to Environmental, Social and Corporate
Governance ("ESG") both in operational practice and in the capital
raising process.
"We have previously indicated that we intended to finance
construction of the Empire Open Pit Mine with minimal or no
dilution to existing shareholders, and we expect the Bond Placement
to achieve this, as the Bonds will be non-convertible. Furthermore,
with repayment scheduled after 10 years, the Bond Placement should
free up significant additional cash during the initial few years of
the mine life, which would otherwise have been used to repay more
traditional forms of mine finance. It is intended that this
additional early cash will enable us to accelerate exploration and
development of the mineralised district surrounding the Empire Open
Pit Mine, including the Red Star silver-lead deposit, the Navarre
Creek gold project, and the historically mined sulphide copper
deposit below the Empire Open Pit Mine.
"We look forward to providing shareholders with further updates
regarding the Bond Placement as and when appropriate."
Further details
Further to the announcement dated 30 March 2022, the Company has
engaged EAS Advisors LLC, acting through Odeon Capital Group LLC,
and Tigress Financial Partners LLC as joint lead brokers in the US,
and WH Ireland Ltd and Panmure Gordon (UK) Ltd as joint lead
brokers in the UK, to lead a syndicate of brokers and advisers,
working with the Company, to execute the Bond Placement.
The Company expects to raise a minimum of $60 million (gross)
via the issue of the Bonds to institutional and other
investors.
The Bonds will have a denomination of $25,000 each, will be
non-convertible and repayable after 10 years.
The Bonds will pay a semi-annual coupon linked to the average
closing copper price on the London Metal Exchange during any given
coupon period, subject to a minimum coupon of 7.5% per annum (3.75%
per coupon period) at a $3.60 / lb or lower copper price. Each
$0.10 (or part thereof) increase in the average copper price above
$3.60 / lb will result in a 0.15% (or part thereof) increase in the
coupon, subject to a maximum coupon of 20% per annum (10% per
coupon period) at a $11.95 / lb or higher copper price. At the
current copper price of $4.33 / lb the coupon would be 8.60% per
annum (4.30% per coupon period). Any increase in the coupon payable
above the minimum of 7.5% per annum is expected to be covered
approximately 10 times over by the corresponding increase in
revenue received as a result of the higher copper price.
It is intended to list the Bonds on TISE in the Channel Islands
as soon as practical after issue. The Bonds will be secured on the
Company's patented mining claims in so far as they relate to the
Empire Open Pit Mine.
Although the Directors are confident that the Bond Placement
will proceed and be fully placed, the issue is not underwritten so
there can be no certainty in this regard, or that the final terms
agreed with investors will be consistent with those set out in this
announcement.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 which has been
incorporated into UK law by the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Environmental, Social, and Corporate Governance
Phoenix is committed to meeting and exceeding the environmental
standards required by law as a core value of the Company. The
baseline environmental data collected to date will be used for
furthering the permitting process, but as importantly, will be used
as the building blocks for the Company's ongoing Environmental,
Social, and Corporate Governance (ESG) platform, overseen by the
Company's ESG & Sustainability Committee.
Contacts
For further information please visit
https://phoenixcopperlimited.com or contact:
Phoenix Copper Ryan McDermott Tel: +1 208
Limited Brittany Lock 954 7039
Richard Wilkins Tel: +1 208
794 8033
Tel: +44 7590
216 657
SP Angel Corporate David Hignell / Caroline Tel: +44 20
Finance LLP (Nominated Rowe 3470 0470
Adviser)
----------------------------------- ---------------
Tavira Securities Jonathan Evans / Oliver Stansfield Tel: +44 20
Ltd (Joint Broker) 7100 5100
----------------------------------- ---------------
WH Ireland (Joint Harry Ansell / Adam Pollock Tel: +44 207
Broker) / Katy Mitchell 2201666
----------------------------------- ---------------
Panmure Gordon John Prior / Hugh Rich / Tel: +44 20
(UK) Limited Ailsa Macmaster 7886 2500
(Joint Broker)
----------------------------------- ---------------
EAS Advisors Matt Bonner / Rogier de la Tel: +1 (646)
(US Corporate Rambelje 495-2225
Adviser)
----------------------------------- ---------------
BlytheRay Tim Blythe / Megan Ray Tel: +44 20
(Financial PR) 7138 3204
----------------------------------- ---------------
Notes
Phoenix Copper Limited is a USA focused, base and precious
metals emerging producer and exploration company, initially
targeting copper and zinc production from an open pit mine.
Phoenix's primary operations are focused near Mackay, Idaho in
the Alder Creek mining district, at the 80% owned Empire Mine
property, which historically produced copper at grades of up to 8%,
as well as gold, silver, zinc and tungsten, from an underground
mine.
Since 2017, Phoenix has carried our extensive drill programmes
which have defined a NI 43-101 compliant PEA (preliminary economic
assessment) for an open pit heap leach solvent extraction and
electrowinning ("SX-EW") mine, which was updated in October 2020.
The contained metal in all NI 43-101 compliant categories of
resources, Measured, Indicated and Inferred, stand at 129,641
tonnes of copper, 355,523 ounces of gold, 10,133,772 ounces of
silver and 58,440 tonnes of zinc. Phoenix updated its economic
model in February 2021 to include the processing of all contained
metals through a two phased approach.
In addition to Empire, the district includes the historic
Horseshoe, White Knob and Blue Bird Mines, past producers of
copper, gold, silver, zinc, lead and tungsten from underground
mines. A new discovery at Red Star, 330 metres northwest of the
Empire Mine proposed open pit, has revealed high grade silver /
lead sulphide ore, and from three shallow exploration drill holes a
maiden resource of 103,000 tonnes containing 173.4 g/tonne silver,
0.85 g/tonne gold and 3.85% lead (1.6 million ounces silver
equivalent) was reported in an NI 43-101 technical report published
in May 2019. Additionally, the district includes Navarre Creek, a
volcanic hosted precious metals target in a 14.48 sq km area. The
Company's total land package at Empire comprises 8,034 acres (32.51
sq kms).
At Empire, it is estimated that less than 1% of the potential
ore system has been explored to date and, accordingly, there is
significant opportunity to increase the resource through phased
exploration. The stated aim of the Company is to fund this phased
exploration through free cashflow generated by its initial mine. A
Plan of Operations in respect of the initial open pit mine was
filed with the relevant regulatory authorities in June 2021.
Phoenix also has two wholly owned cobalt properties on the Idaho
Cobalt Belt to the north of Empire. An Earn-In Agreement has been
signed with Electra Battery Materials (formerly First Cobalt
Corporation), Toronto, in respect of one of those properties.
Phoenix is listed on London's AIM (PXC), and trades on New
York's OTCQX Market (PXCLF and PXCLY (ADRs)). More
details on the Company, its assets and its objectives can be found on PXC's website at https:// phoenixcopperlimited.com.
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