REG - Phoenix Copper Ltd - Corporate Update

Phoenix CopperAnnouncement

24/03/2023 07:00

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

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