TIDMPXC
RNS Number : 0834U
Phoenix Copper Limited
24 March 2023
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
24 March 2023
Phoenix Copper Limited
('Phoenix' or the 'Company')
Corporate Update
Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLY), the AIM-quoted
USA-focused base and precious metals emerging producer and
exploration company is pleased to provide an update on recent
corporate developments.
Corporate Copper Bonds
The Company is finalising discussions with a number of parties
with a view to placing up to $80 million of corporate copper bonds,
which were initially announced on 8 June 2022 (the "Bonds").
Recognising current market conditions, the coupon payable on the
Bonds has been amended to the higher of a copper price coupon or an
interest rate coupon.
The copper price coupon will be a minimum of 8.5% per annum at a
$3.60 per pound ("/lb") or lower average monthly closing copper
price during the relevant coupon period. Each $0.10/lb (or part
thereof) increase in the copper price will increase the coupon by
0.15% (or part thereof), subject to a maximum of 20% per annum at a
$11.27/lb or higher copper price. The interest rate coupon will be
the average monthly closing Federal discount rate, plus 5%, subject
to a minimum of 8.5% per annum and a maximum of 20% per annum.
Although the Directors remain confident the Bonds will be
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 sumarised above.
Short-term Loan Facility
The Company has entered into a short-term $2,000,000 loan
facility (the "Facility") with Riverfort Global Opportunities PCC
Ltd (the "Lender") in order to strengthen US dollar operational
working capital ahead of the 2023 exploration season, pending
completion of the Bonds. The Facility is unsecured, has an initial
three month term (the "Initial Term"), and pays a fixed 4%
coupon.
The Company has the option to extend the Facility beyond the
Initial Term for a further nine months, at 1% interest per month.
If the Facility is extended, the Lender will be entitled to convert
any principal or other amount outstanding into the Company's
ordinary shares ("Ordinary Shares"), in one or more tranches, at a
price equal to a 10% discount to the lowest VWAP in the ten days
prior to conversion.
The Company will issue the Lender 2,000,000 warrants over
Ordinary Shares, exercisable at 42p, and valid for three years.
The Company maintains sufficient sterling working capital to
cover corporate overheads, well into 2024.
Annual Results for the Year Ended 31 December 2022
The audit for the year ended 31 December 2022 is progressing
well and the Company expects to publish the 2022 audited Annual
Report and Accounts towards the end of April, with a view to
calling the 2023 Annual General Meeting during May.
ESG Update
The Company continues to strengthen its Environmental, Social
& Governance ("ESG") credentials and is pleased to report that
it has obtained an overarching score of 'A' on Digbee ESG, a
disclosure platform for the mining industry that simplifies peer
reporting and rewards management action. This report will shortly
be available to view on the Company's website
https://www.phoenixcopperlimited.com. The Company is also
completing its inaugural ESG & Sustainability Report,
summarising activities to date and setting out future goals up to,
and following, production of copper and other metals from the
Empire Open Pit Mine in Idaho, USA. This report is expected to be
published during May.
Ryan McDermott, Chief Executive Officer, said, "These are
exciting times for the Company, both at a corporate and an
operational level. We are also looking forward to the upcoming 2023
exploration season, a primary focus of which will be a 60 hole
drilling program at our Navarre Creek gold zone, which forms part
of our expanded area of interest beyond the original Empire Mine
claim blocks, as well as further drilling within those claim blocks
themselves. I look forward to reporting on this exploration work in
due course."
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.
Market Abuse Regulation (MAR) Disclosure
The Company deems the information contained within this
announcement 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 the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Contacts
For further information please visit
https://phoenixcopperlimited.com or contact:
Phoenix Copper Limited Ryan McDermott Tel: +1 208 954
Brittany Lock 7039
Richard Wilkins Tel: +1 208 794
8033
Tel: +44 7590
216 657
SP Angel (Nominated David Hignell / Kasia Brzozowska Tel: +44 20 3470
Adviser) 0470
------------------------------------ -----------------
Tavira Financial Jonathan Evans / Oliver Stansfield Tel: +44 20 7100
Limited (Joint Broker) 5100
------------------------------------ -----------------
WH Ireland (Joint Harry Ansell / Katy Mitchell Tel: +44 20 7220
Broker) 1666
------------------------------------ -----------------
Panmure Gordon (UK) John Prior / Hugh Rich / Ailsa Tel: +44 20 7886
Limited (Joint Broker) Macmaster 2500
------------------------------------ -----------------
EAS Advisors (US Matt Bonner / Rogier de la Rambelje Tel: +1 (646)
Corporate Adviser) 495-2225
------------------------------------ -----------------
BlytheRay Tim Blythe / Megan Ray Tel: +44 20 7138
(Financial PR) 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 out extensive drill programs
which have defined a NI 43-101 completed PEA (preliminary economic
assessment) for an open pit heap leach solvent extraction and
electrowinning ("SX-EW") mine, which was updated in October 2020.
From the 2020 PEA, the measured and indicated resource is:
22,909,059 tonnes at an average grade of 0.38% copper, 0.324
grammes per tonnes ("g/t") gold, 10.3 g/t silver, and 0.19% zinc.
The contained metal for the measured and indicated resource is
87,543 tonnes of copper, 238,406 ounces of gold, 7,595,198 ounces
of silver and 43,871 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 inferred resource of 103,000 tonnes containing 173.4 g/t
silver, 0.85 g/t 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, 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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