REG - Phoenix Copper Ltd - Update on CLN conversion and metal prices

Phoenix CopperAnnouncement

23/01/2026 07:00

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RNS Number : 0324Q  Phoenix Copper Limited  23 January 2026

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

 

23 January 2026

Phoenix Copper Limited

("Phoenix" or the "Company")

Partial Conversion of Convertible Loan Note

Current Metal Prices Uplift Empire Open-Pit Economics

 

Phoenix Copper Limited (AIM: PXC; OTCQX ADR: PXCLY), the AIM quoted, USA
focused base and precious metals emerging producer and exploration company,
announces a partial conversion of its $2.1 million convertible loan note
("CLN") issued to Indigo Capital LP ("Indigo"). The Company is also pleased to
confirm the effect of increased metal prices on its 2024 Empire open-pit
pre-feasibility study ("PFS") economic model.

Partial Conversion of CLN

Further to the announcement on 4 December 2025, the Company confirms that the
CLN holder, Indigo, has converted $536,000 at 1.483 pence per share into
26,981,814 new ordinary shares of no par value in the Company ("New Ordinary
Shares").

Application has been made for the New Ordinary Shares to be admitted to
trading on AIM ("Admission"). It is expected that Admission will become
effective and dealings will commence at 8:00 am on or around 26 January 2026.

The Company has been informed that Indigo has entered into agreements to
divest 24,181,814 of the New Ordinary Shares to various equity funds and
family offices in Europe and elsewhere, as soon as practicable following
Admission.

Total Voting Rights

Following Admission, the Company will have 287,995,114 ordinary shares
outstanding. Shareholders may use this number as the denominator for the
calculation by which they will determine if they are required to notify their
interest in, or a change in their interest in, the issued share capital of the
Company.

Potential Impact of Current Metal Prices on the 2024 Economic Model

The 2024 open-pit PFS economic model (the "2024 Model") was generated at the
time using conservative, near-term trailing average metal prices of  $4.45 /
lb copper price, a $2,325 / oz gold price and a $27.25 / oz silver price. In
order to illustrate the potential impact of current metal prices on the
economics of the open pit, the Company has applied the following metal pricing
to the 2024 Model; $5.58 / lb copper, $4,338 / oz gold and $70.73 / oz silver.
Should these metal prices be maintained, the impact would be significant and
would result in cumulative pre-tax net (after repaying estimated
pre-production capital costs) cashflow of $405.80 million over the 8.5 year
life of mine, as well as a 7.5% pre-tax Net Present Value ("NPV") of $252.11
million and a pre-tax Internal Rate of Return of 98.4%.

A comparison of the impact to the 2024 Model is summarised in the table below:

 Project Evaluation Overview         2024 PFS Before Tax / After Tax  2026 Before Tax / After Tax  % Change
 Cumulative Net Cashflow (millions)  $152.98 / $132.44                $405.80 / $350.89            165.3 / 164.9% Increase
 NPV @ 5.0% (millions)               $105.44 / $89.55                 $293.85 / $252.34            178.7 / 181.8% Increase
 NPV @ 7.5% (millions)               $87.86 / $73.75                  $252.11 / $215.67            186.9 / 192.4% Increase
 NPV @ 10.0% (millions)              $73.29 / $60.71                  $217.34 / $185.17            196.5 / 205% Increase
 Internal Rate of Return             46.4% / 40.2%                    98.4% / 86.6%                52 / 46.4% Increase

 

The 2026 Before Tax / After Tax results presented above have been internally
estimated by the Company and have not been verified by the Company's
independent technical consultants or Qualified Person.  The results of this
comparison are illustrative only and are not intended to imply a change in the
Empire open pit mineral reserve nor are they intended to imply a new or
updated Empire open pit economic model.

The Company also refers to its ongoing discussions with the US based bond
investor (the "Investor"), first announced on 12 June 2025. These discussions
have taken longer than initially anticipated due to other transactions the
Investor has been completing. Although there can be no certainty a definitive
agreement will be reached with the Investor, the Directors look forward to
finalising the discussions and progressing towards completion.  The Company
looks forward to providing shareholders with further updates as appropriate.

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 9547039

                                                      Paul de Gruchy                                Tel: +44 7484 203 720

                                                      Richard Wilkins                               Tel: +44 7590 216 657
 SP Angel Corporate Finance LLP (Nominated Adviser)   David Hignell / Jen Clarke / Devik Mehta      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
 Oak Securities (Corporate Bond Adviser)              Hugh Rich                                     Tel: +44 20 3973 3678
 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 oz of gold and
4,654,400 oz 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/

 

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