REG - Phoenix Copper Ltd - Earn-in Agreement Renewed for Redcastle

Phoenix CopperAnnouncement

25/07/2024 15:00

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RNS Number : 8955X  Phoenix Copper Limited  25 July 2024

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

25 July 2024

 

Phoenix Copper Limited

("Phoenix" or the "Company")

 

Earn-in Agreement Renewed with Electra Battery Materials on the Redcastle
Cobalt Property

 

Phoenix Copper Ltd (AIM: PXC; OTCQX ADR: PXCLY), the AIM-quoted USA-focused
base and precious metals emerging producer and exploration company,  is
pleased to announce that it has renewed its earn-in agreement (the
"Agreement") with Electra Battery Materials ("Electra") (TSX.V: ELBM, NASDAQ:
ELBM), in respect of the Company's Redcastle cobalt property ("Redcastle") on
the Idaho Cobalt Belt. The original agreement was executed on May 21, 2021.

 

The Company's cobalt holdings can be viewed on the Phoenix website
at  https://phoenixcopperlimited.com (https://phoenixcopperlimited.com/) .

 

Highlights

·      Phoenix has signed an amendment to the Redcastle Property
Agreement to extend its two main exploration expenditure commitments by two
years, to 2026 and 2028 respectively.

 

·      The amendment will require an investment of US$1.5M into any
combination of exploration, development and related work by the third
anniversary date of May 21, 2026; with an additional required investment of
US$1.5M into any combination of the above works by the fifth anniversary date
of May 21, 2028.

 

·      Electra's 2023 field programme discovered a previously unknown
copper surface showing on an unexplored boundary area of the Redcastle
Agreement claims.

 

·      A follow-up field reconnaissance programme is being considered on
the heels of the amended Redcastle Agreement, subject to financing.

·      The Company's Bighorn cobalt property on the Idaho Cobalt Belt
does not form part of the Agreement.

Ryan McDermott, Chief Executive Officer, commented: "We are pleased to be
continuing our collaboration with Electra through the extension of this
agreement. We believe Electra is well-positioned to further advance the
Redcastle property's potential, and we look forward to working with the
Electra team as that potential is realized."

 

Phoenix's Redcastle claim block is located in Lemhi County, situated within
the southern region of the Idaho Cobalt Belt, approximately 110 miles north of
the Empire Open-Pit Mine Project. Covering 600 acres of unpatented mining
claims, the claims block shares a border with Electra Battery Material's Iron
Creek property. At present, the Iron Creek Mine hosts Indicated cobalt and
copper Mineral Resources totaling 4.5 million tonnes, with cobalt grading at
0.19% for 18.4 million pounds and copper grading at 0.73% for 71.5 million
pounds. Additionally, Inferred copper and cobalt Mineral Resources stand at
1.2 million tonnes, with cobalt at 0.08% for 2.1 million pounds and copper at
1.34% for 36.5 million pounds.

 

Electra Battery Materials, listed on both TSX and NASDAQ with a market
capitalisation of approximately US$25.6 million, has conducted drilling
activities at Iron Creek since 2018, utilising both surface and underground
approaches. With their established expertise, workforce, and local
infrastructure, they are well-suited to lead exploration efforts at our
adjacent Redcastle property. This agreement facilitates the advancement of
Redcastle's development at no expense to Phoenix, allowing us to focus on our
primary endeavour, the Empire Mine in Custer County.

 

Trent Mell, First Cobalt Chief Executive Officer, commented: "Extending this
agreement preserves the opportunity to advance the potential of the Redcastle
site, and we are in the process updating our exploration permit, allowing us
to explore for up to 10 years beginning in 2025. Although Electra's primary
focus remains completing our cobalt refinery project in Ontario, given the
potential for the Idaho Cobalt Belt to be an important source of critical
minerals needed for North America's developing EV battery supply chain, we
look forward to re-launching field exploration work and exploration drilling
programs and continuing our collaboration with Phoenix."

 

Redcastle and Iron Creek Cobalt - Lemhi County, Idaho

 

The Redcastle property is located in the southern half of the Idaho Cobalt
Belt in Lemhi County approximately 110 miles north of the Empire Mine.
The property consists of 600-acres of unpatented mining claims situated due
east, and sharing a common border with, Electra's Iron Creek Cobalt
Project.

 

Electra's Idaho properties consist of mining patents and exploration claims
over an area of 73.15 km(2), including the Iron Creek Project, and cover the
strike extent of strata hosting the cobalt-copper sulphide mineralisation.
Iron Creek is one of several cobalt-copper resources and prospects within the
Idaho Cobalt Belt, a prospective mineralised system that contains the largest
primary cobalt resources in the United States, according to the U.S.
Geological Survey. Historical underground development at Iron Creek includes
600 metres of underground drifting from three adits. In March 2023, Electra
released an updated Mineral Resources Estimate for the Iron Creek Project. A
road connects Iron Creek to a state highway and the nearby towns of Challis
and Salmon, and the Redcastle Property is located east adjacent to Electra's
Iron Creek Property.  More information is available at
https://electrabmc.com/projects/iron-creek/
(https://electrabmc.com/projects/iron-creek/)

 

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://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fphoenixcopperlimited.com%2F&data=05%7C02%7Cpaul.degruchy%40phoenixcopper.com%7Cd3c94638cd2a404fd97908dc4457be72%7C0ab43313efbd470e8b202b53ae10513d%7C0%7C0%7C638460390942473879%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=zDJLf9dFwaNJhQmfkjPJtPnIxiqtCJb%2F1IuX1s1r7kQ%3D&reserved=0)
, or contact:

 

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

                                                     Paul de Gruchy                       Tel: +44 7484 203720

                                                     Richard Wilkins                      Tel: +44 7590 216 657
 SP Angel Corporate Finance LLP (Nominated Adviser)  David Hignell / Caroline Rowe        Tel: +44 20 3470 0470
 Tavira Financial Limited (Joint Broker)             Jonathan Evans / Oliver Stansfield   Tel: +44 20 7100 5100
 Zeus Capital Limited (Joint Broker)                 Harry Ansell / Katy Mitchell         Tel: +44 20 7220 1666
 Panmure Liberum (UK) Limited (Joint Broker)         Mark Murphy / Kieron Hodgson         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 an emerging producer and exploration company
specialising in base and precious metals, with an initial focus on copper,
gold, and silver extraction from an open-pit mining operation within the
United States.

 

Located in the historic Alder Creek mining district near Mackay, Idaho,
Phoenix's flagship asset is the Empire Mine, in which the Company holds an 80%
ownership stake. The historic Empire underground mine, located beneath the
surface of the Company's proposed open pit, boasts a rich history of producing
high-grade copper, gold, silver, zinc, and tungsten.

 

Since 2017, Phoenix has executed extensive drilling initiatives, resulting in
an expansion of the Empire Open-Pit resource by over 200%. In May 2024 the
Company published its inaugural mineral reserve statement for the Empire
Open-Pit Mine. Proven and Probable mineral reserves are 10.1 million tonnes
containing 109,487,970 lbs of copper, 104,000 ounces of gold and 4,654,400
ounces of silver. This reserve was estimated using assay data from 485 drill
holes, extensive geological modelling, metallurgical recovery test work,
geotechnical evaluation, and mine design. The reserve represents a combined
66,467 tonnes of copper equivalent metal.

 

In addition to the Empire Mine, Phoenix's holdings in the district also
encompass the Horseshoe, White Knob, and Blue Bird Mines, all of which have
been producers of copper, gold, silver, zinc, lead, and tungsten from
underground operations, a new high-grade silver and lead orebody at Red Star,
and the Navarre Creek gold exploration project, which was first drilled in
2023. The Company's land package at Empire spans 8,434 acres (34 sq km).

 

Phoenix also owns two cobalt properties situated along the Idaho Cobalt Belt
to the north of Empire. An Earn-In Agreement has been established concerning
one of these 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://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fphoenixcopperlimited.com%2F&data=05%7C02%7Cpaul.degruchy%40phoenixcopper.com%7Cd3c94638cd2a404fd97908dc4457be72%7C0ab43313efbd470e8b202b53ae10513d%7C0%7C0%7C638460390942473879%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=zDJLf9dFwaNJhQmfkjPJtPnIxiqtCJb%2F1IuX1s1r7kQ%3D&reserved=0)

 

 

 

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