REG - Phoenix Copper Ltd - Refinancing of Short-Term Loan Facility

Phoenix CopperAnnouncement

04/03/2024 07:00

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RNS Number : 3645F  Phoenix Copper Limited  04 March 2024

4 March 2024

 

Phoenix Copper Limited

("Phoenix" or the "Company")

 

Refinancing of Short-Term Loan Facility

 

 

 

Phoenix Copper Limited (AIM: PXC; OTCQX ADR: PXCLY), the AIM quoted
USA-focused base and precious metals emerging producer and exploration
company, is pleased to confirm that, further to the announcement on 19
February 2024, the Company has completed the refinancing of its US$2 million
short-term loan facility (the "Existing Facility") into a new facility of up
to US$10 million (the "New Facility").

 

The Existing Facility, plus accrued interest, is being treated as the first
drawdown on the New Facility as at 2 March 2024 ("First Drawdown"). Further
drawdowns under the New Facility are subject to the Company having first
received at least US$25 million from its proposed corporate copper bond
financing. Although there can be no certainty, the Directors remain confident
that the bond financing will close. Further announcements relating to the bond
financing will be made as appropriate.

 

Terms of the New Facility

 

 Total Amount                           US$10m Unsecured Loan

 Availability Period                    3 Years

 First Drawdown                         US$2.089 million

 Interest                               15% per annum

 Repayment                              The First Drawdown and any further drawdowns have a 90-day repayment holiday
                                        and are then repayable in equal monthly instalments over the following 15
                                        months.

 Conversion Terms                       The First Drawdown is convertible into shares of no par value in the Company
                                        at 20 pence per share (a 70% premium to the current share price) but cannot be
                                        converted for an initial period of 60 days after the First Drawdown, unless
                                        the Company's closing share price on the day prior to conversion is 30 pence
                                        or higher.

                                        Further drawdowns are convertible at a 40% premium to the average of the five
                                        daily VWAPs preceding the date of drawdown (the "Reference Price").

                                        The Company is not obliged to make any further drawdowns.

 Implementation Fee / Early Redemption  Implementation fee equivalent to 5% of each drawdown.

                                        The Company may redeem any amount prior to maturity, subject to an early
                                        redemption fee equal to 10% of the amount redeemed.

 Warrants                               The lender will receive warrants to subscribe for ordinary shares of no par
                                        value each in the Company equivalent to 40% of the pound sterling equivalent
                                        of the principal amount of each drawdown, divided by the Reference Price, with
                                        an exercise price equivalent to a 40% premium to the Reference Price, and
                                        valid for three years.

                                        The Company has granted warrants to subscribe for 3,300,874 ordinary shares in
                                        the Company  in respect of the First Drawdown, with an exercise price of 20
                                        pence per share expiring on 1 March 2027.

 

 

Richard Wilkins, Chief Financial Officer of the Company, commented: "I would
like to thank Riverfort Global for their ongoing support of the Company, and
particularly the flexibility they have allowed us over the last 12 months. We
now look forward to closing our corporate copper bond issue as soon as
possible."

 

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.

 

For further information please visit https://phoenixcopperlimited.com
(https://phoenixcopperlimited.com/)

 

Contacts

 

 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 / Caroline Rowe / 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 and Joint Bookrunner)                    Harry Ansell / Katy Mitchell                          Tel: +44 20 7220 1666

 Panmure Gordon (UK) Limited (Joint Broker and Joint Bookrunner)   Mark Murphy / Will Goode / Joseph Tan                 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, silver 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 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/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 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 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/

 

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