REG - Phoenix Copper Ltd - Corporate copper bonds and loan facility update

Phoenix CopperAnnouncement

05/01/2024 07:00

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RNS Number : 7209Y  Phoenix Copper Limited  05 January 2024

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

5 January 2024

Phoenix Copper Limited

('Phoenix' or the 'Company')

 

Update on corporate copper bonds and short-term loan facility

 

Phoenix Copper Ltd (AIM: PXC, OTCQX: PXCLY), the AIM-quoted USA-focused base
and precious metals company, refers to the Company's proposed corporate copper
bond financing which is intended to finance construction of the Empire
open-pit copper mine in Idaho, USA and confirms that discussions remain at an
advanced stage with a number of interested bond investors.

The relevant documentation relating to the creation of the bonds has now been
finalised, the bond security has been recorded with the Custer County Recorder
in Challis, Idaho, and the bonds have been deposited with the settlement
agent. The issue of the bonds remains subject to the satisfactory conclusion
of discussions with interested bond investors.

The Company also refers to the $2 million short-term loan facility (the
"Facility") first announced on 24 March 2023, and confirms that it is in
negotiations with the lender to roll the Facility into a new and larger
facility to assist the Company with access to additional working capital,
should it be required for purposes other than construction of the Empire
open-pit copper mine.

Although there can be no certainty at this stage, the Directors remain
confident that the bond financing will close and that the Facility will be
rolled into a new facility. Further announcements relating to the bond
financing and the Facility will be made as appropriate.

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 to further 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. The Company has recently
published its inaugural Sustainability Report, which can be viewed on the
Company's website.

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
(https://phoenixcopperlimited.com/)  or contact:

 Phoenix Copper Limited                              Ryan McDermott                                Tel: +1 208 954 7039

                                                     Brittany Lock                                 Tel: +1 208 794 8033

                                                     Richard Wilkins                               Tel: +44 7590 216 657
 SP Angel Corporate Finance LLP (Nominated Adviser)  David Hignell / Kasia Brzozowska              Tel: +44 20 3470 0470
 Tavira Financial Limited (Joint Broker)             Jonathan Evans / Oliver Stansfield            Tel: +44 20 7100 5100

 WH Ireland (Joint Broker)                           Harry Ansell / Katy Mitchell                  Tel: +44 20 7220 1666
 Panmure Gordon (UK) Limited (Joint Broker)          John Prior / Hugh Rich / Ailsa Macmaster      Tel: +44 20 7886 2500
 EAS Advisors (US Corporate Adviser)                 Matt Bonner / Rogier de la Rambelje           Tel: +1 (646) 495-2225
 BlytheRay                                           Tim Blythe / Megan Ray                        Tel: +44 20 7138 3204

(Financial PR)

Notes

Phoenix Copper Limited is a USA focused, base and precious metals emerging
producer and exploration company, initially targeting copper, gold and silver
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 programmes 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 tonne ("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.

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/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 16.09 sq km area. The Company's total land package at
Empire comprises 8,434 acres (34.13 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 primarily 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/
(https://phoenixcopperlimited.com/)

 

 

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