TIDMPXC
RNS Number : 3020T
Phoenix Copper Limited
13 November 2019
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
13 November 2019
Phoenix Copper Limited (the "Company" or "Phoenix")
Equity subscription and Loan Note Placing to raise
GBP850,000
Phoenix Copper Limited (AIM; PXC, OTCQX: PGMLF), the AIM quoted
North American focused base and precious metals exploration and
development company, is pleased to announce that it has raised a
total of GBP850,000 (US$1,085,200) (before expenses) by way of a
subscription for new ordinary shares of no par value each
("Ordinary Shares") and the issue of unsecured loan notes (the
"Fundraising").
GBP340,000 (US$435,200) has been raised by way of a subscription
for 2,000,000 new Ordinary Shares of no par value each at a price
of 17 pence per share (the "New Shares"), and GBP510,000
(US$650,000) by way of an issue of 12 per cent unsecured loan
notes, repayable on 31 January 2021. The Company will also grant a
total of 650,000 warrants to the loan note holders which will be
exercisable at 20 pence per share and valid until 31 July 2022 (the
"Warrants"). The Warrants will not be listed.
The proceeds will be primarily used to develop the resources at
the Company's Red Star silver deposit adjacent to the proposed
Empire Mine open pit copper project in Idaho, USA as well as
provide the Company with additional working capital.
Dennis Thomas, Chief Executive Officer, commented:
"I am delighted to report on the Fundraising, a portion of which
has been raised via equity at a premium to our current market
price, and the balance via non-dilutive debt financing.
"These funds will be used to continue the sampling and drilling
programme on the Red Star silver deposit and the polymetallic
sulphide potential along strike towards four old underground mines
worked in the first half of the twentieth century. Assay results
already returned from shallow drilling at Red Star include 62
ounces per tonne of silver equivalent over a 1.5 metre intersection
and 26 ounces per tonne over a 9.2 metre intersection. Earlier this
year we announced an NI 43-101 compliant maiden resource at Red
Star of 1.6 million ounces of silver equivalent, returned from
three drill holes.
"These funds will be used to expand the resources along strike
and down dip. We plan to generate a mineable reserve on which to
develop an underground mine and build a lead/silver flotation plant
alongside the mine. This is the next phase in the development of
what we firmly believe to be a world-class polymetallic mineralised
ore system.
"The 21 October 2019 press release, an updated consultant's
geological report and the Company's October 2019 presentation can
be found on our web site at www.phoenixcopperlimited.com
"Additionally, it is pleasing to note that once again the Mining
Journal World Risk Report, 2019, has ranked Idaho as the region for
investment with the least perceived risk globally.
"I look forward to further reporting on our results as they
become available."
Director Subscriptions
Certain Directors of the Company participated in the
Fundraising, details of which are set out below:
No of ordinary No of ordinary
shares held shares held % of enlarged
as at the No of New immediately share capital
date of this Shares to following following
Director announcement be subscribed the Subscription the Subscription
Roger Turner 1,238,318 58,824 1,297,142 2.90
Dennis Thomas 1,196,048 58,824 1,254,872 2.80
Andre Cohen 292,809 - 292,809 0.65
Andre Cohen subscribed for US$50,000 in unsecured loan notes and
will therefore also receive 50,000 warrants.
Related Party Transaction
Roger Turner, Dennis Thomas and Andre Cohen, as directors of the
Company, are considered to be related parties to Phoenix, as
defined in the AIM Rules for Companies (the "Related Parties").
Accordingly, Richard Wilkins, Marcus Edwards-Jones, Ryan
McDermott and Jason Riley, as the independent directors, consider,
having consulted with SP Angel Corporate Finance LLP ("SP Angel"),
the Company's nominated adviser, that the terms and conditions of
the above subscriptions are fair and reasonable insofar as the
shareholders of the Company are concerned.
Details of the Fundraising
Application has been made for 2,000,000 New Shares, which will
rank pari passu with the existing Ordinary Shares, to be admitted
to trading on AIM ("Admission"). It is expected that Admission will
become effective and dealings will commence on or around 8:00a.m.
on 21 November 2019.
Total Voting Rights
Following the issue of the New Shares, the issued share capital
of the Company will consist of 44,784,881 Ordinary Shares. No
shares will be held in treasury at the date of this announcement.
The total current voting rights in the Company following the issue
of the New Shares will therefore be 44,784,881.
The above total current voting rights number is the figure which
may be used by shareholders as the denominator for the calculation
by which they will determine if they are required to notify their
interest in, or a change to their interest in the Company.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
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 David Hignell / 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 primary operations are focused near Mackay, Idaho in
the Alder Creek mining district. This district includes the
historical Empire, Horseshoe, White Knob and Blue Bird Mines, past
producers of copper, gold, silver, zinc, lead and tungsten from
underground mines in the first half of the twentieth century.
Additionally, the district includes Navarre Creek a Carlin-trend
gold discovery which hosts a 6.1 km gold strike length within a 9.8
km(2) area.
Phoenix acquired an 80% interest in the historical Empire Mine
property in 2017 and, 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 2018 a further 8,600 metres in 93 holes was
completed to upgrade the oxide resources, provide samples for
ongoing metallurgical test work, 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.
However, 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 copper resources, as well as the
potential for stand-alone gold and silver resources, along a strike
length of approximately 2,500 metres towards the other brownfield
mines of the Horseshoe, White Knob and Blue Bird Mines now within
the property boundary. In particular, a new discovery at Red Star,
330 metres north west of the Empire Mine proposed open pit, has
revealed sulphide ore and from three shallow exploration drill
holes a NI 43-101 compliant maiden resource of 1.6 million silver
equivalent ounces was reported.
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.
More details on the Company, its assets and its objectives can
be found on PXC's website at www.phoenixcopperlimited.com.
Details of the person discharging managerial responsibilities/person
closely associated
a) Name: Andre Cohen
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2. Reason for the notification
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a) Position/status: Non-Executive Director
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b) Initial notification/Amendment: Initial notification
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3. Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-----------------------------------------------------------------------
a) Name: Phoenix Copper Ltd
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b) LEI: 2138006UWPZAB1A75680
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4. Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
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a) Description of the financial Shares of nil par value
instrument, type of instrument: each
Identification code:
ISIN: VGG7060R1139
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b) Nature of the transaction: Warrants attached to
loan note
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c) Price(s) and volume(s): Price(s) Volume(s)
20 pence 50,000
----------
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d) Aggregated information: Price(s) Volume(s)
Aggregated volume: 20 pence 50,000
Price: ----------
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e) Date of the transaction: 13 November 2019
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f) Place of the transaction: Outside a trading venue
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Details of the person discharging managerial responsibilities/person
closely associated
a) Name: Roger Turner
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2. Reason for the notification
-----------------------------------------------------------------------
a) Position/status: Chief Technical Officer
and Non-Executive Director
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b) Initial notification/Amendment: Initial notification
-------------------------------------- -------------------------------
3. Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-----------------------------------------------------------------------
a) Name: Phoenix Copper Ltd
-------------------------------------- -------------------------------
b) LEI: 2138006UWPZAB1A75680
-------------------------------------- -------------------------------
4. Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-----------------------------------------------------------------------
a) Description of the financial Shares of nil par value
instrument, type of instrument: each
Identification code:
ISIN: VGG7060R1139
-------------------------------------- -------------------------------
b) Nature of the transaction: Subscription for cash
-------------------------------------- -------------------------------
c) Price(s) and volume(s): Price(s) Volume(s)
17 pence 58,824
----------
-------------------------------------- -------------------------------
d) Aggregated information: Price(s) Volume(s)
Aggregated volume: 17 pence 58,824
Price:
-------------------------------------- -------------------------------
e) Date of the transaction: 13 November 2019
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f) Place of the transaction: Outside a trading venue
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Details of the person discharging managerial responsibilities/person
closely associated
a) Name: Dennis Thomas
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2. Reason for the notification
-----------------------------------------------------------------------
a) Position/status: Chief Executive Officer
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b) Initial notification/Amendment: Initial notification
---------------------------------------- -----------------------------
3. Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-----------------------------------------------------------------------
a) Name: Phoenix Copper Ltd
---------------------------------------- -----------------------------
b) LEI: 2138006UWPZAB1A75680
---------------------------------------- -----------------------------
4. Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-----------------------------------------------------------------------
a) Description of the financial Shares of nil par value
instrument, type of instrument: each
Identification code:
ISIN: VGG7060R1139
---------------------------------------- -----------------------------
b) Nature of the transaction: Subscription for cash
---------------------------------------- -----------------------------
c) Price(s) and volume(s): Price(s) Volume(s)
17 pence 58,824
----------
---------------------------------------- -----------------------------
d) Aggregated information: Price(s) Volume(s)
Aggregated volume: 17 pence 58,824
Price:
---------------------------------------- -----------------------------
e) Date of the transaction: 13 November 2019
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f) Place of the transaction: Outside a trading venue
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London Stock Exchange. RNS is approved by the Financial Conduct
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END
MSCGGGGGGUPBGPW
(END) Dow Jones Newswires
November 13, 2019 07:16 ET (12:16 GMT)
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