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
Contacts
|
Phoenix Copper Limited
|
Ryan McDermott
Brittany Lock
Richard Wilkins
|
Tel: +1
208 954 7039
Tel: +1
208 794 8033
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
(Financial PR)
|
Tim Blythe / Megan
Ray
|
Tel: +44
20 7138 3204
|
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/