TIDMPXC
RNS Number : 7036E
Phoenix Copper Limited
08 July 2019
Phoenix Copper Limited / Ticker: AIM:PXC / Sector: Mining
8 July 2019
Phoenix Copper Limited ("Phoenix" or the "Company")
Appointment of Lead Financial Adviser for Empire Mine project
financing
Phoenix Copper Limited (AIM: PXC: OTCQX: PGMLF), the North
American focused base and precious metals exploration and
development company, is pleased to announce that it has appointed
Medea Natural Resources Ltd ("Medea"), a specialist mining finance
advisory firm, as the lead financial adviser to arrange structured
project financing of up to $70 million to construct the Empire Mine
open pit project in Idaho, USA, including $10 million of advance
mezzanine debt financing.
Medea is an FCA-regulated corporate advisory firm, located in
London and Singapore, that provides global corporate and capital
advisory services specialising in the mining and metals sector.
Dennis Thomas, CEO of Phoenix, commented:
"We are delighted to be working with Medea to finance the
construction of our open pit, heap leach, SX-EW project at the
Empire Mine. The open pit has a production target of 8,000 tonnes
of copper and zinc per annum, commencing in 2021.
"We have already been approached by a number of mining finance
and trading houses, and it is our intention to fund capital
expenditure predominantly with debt and other forms of project and
metal offtake finance, involving minimal issues of ordinary shares.
Medea, with its global reach and significant expertise in this
area, will assist us in coordinating the best possible structured
finance for the project, thereby optimising our cost of capital for
maximum benefit to our shareholders.
"The mezzanine debt financing will enable us to complete the
feasibility study quickly and, at the same time carry out
exploration on the newly discovered Red Star high grade lead /
silver zone, as well as on the underground sulphides, and on the
two Idaho Cobalt Belt properties."
Leonidas Howden, Partner at Medea, commented: "We are very
excited to be working with the Phoenix executive team and Board to
raise feasibility and construction funding for the Empire mine
which we believe will attract significant interest from the mining
finance community given its excellent economic potential, location
in a highly supporting mining jurisdiction and the key role that
copper will play in the upcoming transition to electric vehicles
and energy storage."
Contacts
For further information please visit
www.phoenixcopperlimited.com or contact:
Phoenix Copper Limited Dennis Thomas / Richard Wilkins Tel: +44 7827
290 849 (Dennis)
/
+44 7590 216 657
(Richard)
SP Angel Lindsay Mair / Caroline Rowe Tel: +44 20 3470
(Nominated Adviser 0470
and Joint Broker)
----------------------------------- ------------------
Brandon Hill Capital Jonathan Evans / Oliver Stansfield Tel: +44 20 3463
(Joint Broker) 5000
----------------------------------- ------------------
Medea Natural Resources Leonidas Howden / Fred White Tel: +44 20 7770
Ltd (Financial Advisor) 6926
----------------------------------- ------------------
Blytheweigh Tim Blythe / Camilla Horsfall Tel: +44 20 7138
(Financial PR) / Megan Ray 3204
----------------------------------- ------------------
Notes
Phoenix Copper Limited is a North American focused, base and
precious metal explorer and developer, which is fast-tracking the
historically-producing Empire Mine in Idaho, USA, back into
production, and exploring for cobalt in Idaho.
Phoenix's flagship project is a brownfield, past producing,
copper, gold, silver, zinc and tungsten underground mine, the
Empire Mine near Mackay in Idaho. Phoenix acquired an 80% interest
in the property in 2015. Based on a total of 320 drill holes an
oxide resource was completed in late 2017. A NI 43-101 compliant
PEA (preliminary economic assessment) for an open pit heap leach
solvent extraction and electrowinning ("SX-EW") mine was completed
in April 2018. In June 2018 a drilling campaign consisting of 8,600
metres in 93 holes was started and completed in late 2018. This
programme was designed to upgrade and increase the oxide resources,
provide samples for ongoing metallurgical testwork, geotechnical
and hydrological studies and condemnation drilling for the heap
leach pad site, waste dump and plant site. An updated NI 43-101
compliant resource was completed in early May 2019 which resulted
in an increase from the PEA resources of 37% contained copper and
108% contained zinc. This resource will now be used as the basis
for the Bankable Feasibility Study ("BFS") scheduled for completion
in mid 2020.
At Empire, it is estimated that only 1 to 2% of the potential
ore system has been explored to date and, accordingly, there is
significant opportunity to increase the resource through phased
exploration; the current resources relate to the oxide resource
only, with the exception of the Red Star discovery "Inferred"
resource, which remains open along strike and does not include the
deeper, higher grade sulphides. In addition, Phoenix has increased
the claim area from 818 acres at the time of its acquisition to
5,717 acres, mainly to the northwest and west, and in so doing has
increased the potential for additional oxide and sulphide resources
by a total strike length of approximately 2,500 metres towards
another brownfield mine, the Horseshoe Mine, which is now within
the property boundary.
The Company also holds two prospective cobalt properties in
Idaho, US, which are located north of the Empire Mine. These are
situated close to the town of Cobalt and are close to projects
being advanced by Canadian junior miners, including eCobalt
Solutions and First Cobalt. Fieldwork, consisting of mapping and
sampling and locating drill holes for the 2019 drilling programme,
has been completed.
With a management team that has successfully constructed,
commissioned and operated mines and low risk, mining-friendly
jurisdictions with excellent infrastructure, Phoenix is looking to
fulfil its ambitions to become a mid-tier base metal, precious
metal and cobalt production company, offering exposure to high
value and high demand metals with compelling demand/supply
fundamentals.
More details on the Company, its assets and its objectives can
be found on PXC's website at www.phoenixcopperlimited.com.
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END
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