REG - Phoenix Copper Ltd - Update: Purchase of Equipment and Debt Refinancing

Phoenix CopperAnnouncement

19/02/2024 07:00

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RNS Number : 5145D  Phoenix Copper Limited  19 February 2024

19 February 2024

 

Phoenix Copper Limited

("Phoenix" or the "Company")

 

Update re Purchase of Equipment and Debt Refinancing

 

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 provide an update on the purchase of equipment for
the Empire open-pit mine in Idaho, USA, further to the announcement on 26
January 2024, and on the refinancing of its US$2 million short-term loan
facility (the "Existing Facility").

 

Purchase of Equipment

 

The Company has executed an Asset Purchase Agreement (the "Purchase
Agreement") to acquire two pre-owned ball mills to be used in the processing
circuit at the Empire open-pit mine. The closing and funding date of the
Purchase Agreement is 15 March 2024 and is subject to a final inspection and
inventory of parts and components. Additional information will be provided
following the closing date. The Directors believe the purchase of these mills
at a significant discount to the price of the same equipment when new, should
have a material positive impact on the Empire mine project economics, as well
as reducing the time required to purchase these long lead-time items.

 

Refinancing of Short-Term Loan Facility

 

The Company also confirms that it has agreed terms to refinance the Existing
Facility into an 18-month term loan (the "Term Loan"), and is currently
finalising the legal documentation. Pending execution of the Term Loan
documentation, the lender has agreed to waive its conversion rights on the
Existing Facility until 1 March 2024. Further information regarding the Term
Loan will be provided following execution of the legal documentation.

 

 

 

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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