Oversubscribed Placing & Subscription
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
27 May 2020
Phoenix Copper Limited (the "Company" or "Phoenix")
Oversubscribed Placing & Subscription to raise £1,760,000
Phoenix Copper Limited (AIM: PXC; OTCQX: PXCLF), the AIM quoted North American focused base and precious metals exploration and development company, is pleased to announce that it has raised a total of £1,760,000 (before expenses) by way of a placing and subscription for ordinary shares of no par value each ("Ordinary Shares"). The funds will be used to accelerate the gold and silver work programmes at the Company's Red Star, Empire open pit and Navarre Creek mineral properties in Idaho, USA.
- £1,760,000 raised at 18 pence per share
- Placing & subscription oversubscribed
- Use of proceeds:
o Diamond drilling at the high-grade Red Star silver / lead deposit
o Additional drilling and metallurgical engineering on the precious metals extensions at the Empire open-pit
o Gold exploration at Navarre Creek
£1,760,000 has been raised by way of a placing and subscription for 9,777,641 new Ordinary Shares at a price of 18 pence per share (the "Fundraise Shares") (the "Fundraising"). The Company will also grant a total of 453,467 broker warrants exercisable at 18 pence per Ordinary Share and valid until 30 June 2023 (the "Warrants"). The Warrants will not be listed or quoted on AIM.
The net proceeds of the Fundraising will be used to accelerate the gold and silver work programmes at the Company's Red Star silver / lead deposit, continued precious metals work at the Empire open pit, and the Navarre Creek gold exploration project. These work programmes will commence immediately and the funds will also provide the Company with additional working capital.
Ryan McDermott, Chief Executive Officer, commented:
"This Fundraising marks another significant moment in the Company's development. Early in the second quarter this year, we reported the addition of significant precious metal value to the Empire open-pit resource, and we commenced the 2020 Red Star drilling programme on 27 April 2020.
"This £1.76 million Fundraising will allow the Phoenix team to continue its work on a precious metals expansion programme at the Empire open-pit through a combination of drilling and metallurgical testing focused on the gold and silver trends recognised in and around the oxide-copper resource area. Additionally, it will enable the expansion of the Red Star drilling programme throughout the Red Star shear zone, and allow the team to conduct a focused, geophysical and geochemical programme at the Navarre Creek claim block.
"The drilling programme at Red Star is progressing well, especially as the wet spring time weather is now turning toward drier, summer conditions. As we have recently expanded the network of roads and drill pads in the shear zone, several additional mineralised structures have been exposed in the dozer cuts below the alluvium. These structures have been added to the list of drill targets in the Red Star zone.
"Metallurgical testing on samples from the precious metals trends in the Empire open-pit is currently underway. The results of the test work should be completed later this summer and, when they are available, will be incorporated into an updated PEA.
"We look forward to sharing additional news from our ongoing programmes as it becomes available and, as always, we appreciate the support of our shareholders as we continue the successful development of our projects."
Each of the directors of the Company (the "Directors") participated in the Fundraising, details of which are set out below:
No. of Ordinary Shares held as at date of this announcement
No. of New Shares subscribed for in the Fundraising
No. of Ordinary Shares held immediately following Admission
% interest in Ordinary Shares immediately following Admission
Substantial Shareholder Subscription
Martin Hughes, a substantial shareholder of the Company, has subscribed for a total of 1,666,650 Fundraise Shares in the Fundraising. Mr. Hughes will hold 13,484,356 Ordinary Shares in the Company immediately following admission of the Fundraise Shares, representing approximately 21.59% of the Company.
Related Party Transaction
The Directors are "related parties" pursuant to the AIM Rules for Companies.
In addition, Martin Hughes is a substantial shareholder in the Company and is therefore also a "related party" pursuant to the AIM Rules for Companies.
The participation of the Directors and Martin Hughes (the "Related Parties") in the Fundraise constitutes a related party transaction in accordance with AIM Rule 13. There being no independent directors of the Placing, the Company's Nominated Adviser, SP Angel Corporate Finance LLP, considers that the terms of the Related Parties participation in the Placing are fair and reasonable insofar as the Company's shareholders are concerned.
Details of the Fundraising
Application has been made for 9,777,641 Fundraise Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings will commence on or around 8.00 a.m. on 1 June 2020. The Fundraise Shares will rank pari passu with the existing Ordinary Shares in the Company.
Total Voting Rights
Following the issue of the Fundraise Shares the issued share capital of the Company will consist of 62,462,522 Ordinary Shares. No shares will be held in treasury at the date of this announcement. The total voting rights in the Company following the issue of the Fundraise Shares will therefore be 62,462,522.
The above total current voting rights number is the figure which may be used by shareholders as the denominator for the calculation by which they determine if they are required to notify their interest in, or a change to, their interest in the Company.
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 ("MAR"). In addition, market soundings (as defined in MAR) were taken in respect of the Placing with the result that certain persons became aware of inside information (as defined in MAR), as permitted by MAR. This inside information is set out in this announcement. Therefore, those persons that received inside information in a market sounding are no longer in possession of such inside information relating to the Company and its securities.
For further information please visit www.phoenixcopperlimited.com or contact:
Phoenix Copper Limited
Tel: +1 208 954 7039
Tel: +44 7827 290 849
Tel: +44 7590 216 657
David Hignell / Caroline Rowe
Tel: +44 20 3470 0470
Brandon Hill Capital (Joint Broker)
Jonathan Evans / Oliver Stansfield
Tel: +44 20 3463 5000
WH Ireland (Joint Broker)
Harry Ansell / Adam Pollock / Katy Mitchell
Tel: +44 207 2201666
Tim Blythe / Camilla Horsfall / Megan Ray
Tel: +44 20 7138 3204
Phoenix Copper Limited is a North American focused, base and precious metal explorer and developer, which has carried out a drilling programme and generated a copper, gold, silver and zinc resource on which it is carrying out a feasibility study to bring the historically producing Empire Mine in Idaho, USA, back into production. It is also evaluating the silver and gold resources around three other past producing mines within the 23 km2 Empire claims block as well as cobalt in two claims blocks north of Empire in Idaho.
Phoenix's primary operations are focused near Mackay, Idaho in the Alder Creek mining district. This district includes the historical Empire, Horseshoe, White Knob and Blue Bird Mines, past producers of copper, gold, silver, zinc, lead and tungsten from underground mines in the first half of the twentieth century. Additionally, the district includes Navarre Creek a Carlin-trend gold discovery which hosts a 6.1 km gold strike length within a 9.8 km² area.
Phoenix acquired an 80% interest in the historical Empire Mine property in 2017 and, based on a total of 320 drill holes, an oxide resource was completed in late 2017. A NI 43-101 compliant PEA (preliminary economic assessment) for an open pit heap leach solvent extraction and electrowinning ("SX-EW") mine was completed in April 2018. In 2018 a further 8,600 metres in 93 holes was completed to upgrade the oxide resources, provide samples for ongoing metallurgical test work, geotechnical and hydrological studies and condemnation drilling for the heap leach pad site, waste dump and plant site. An updated NI 43-101 compliant resource was completed in early May 2019.
Since acquiring the Empire project, Phoenix has increased the claim area from 818 acres to 5,717 acres, mainly to the northwest and west, and in so doing has increased the potential for additional oxide and sulphide copper resources, as well as the potential for stand-alone gold and silver resources, along a strike length of approximately 5.4 km towards the other brownfield mines of the Horseshoe, White Knob and Blue Bird Mines now within the property boundary. In particular, a new discovery at Red Star, 330 metres north west of the Empire Mine proposed open pit, has revealed sulphide ore and from three shallow exploration drill holes a NI 43-101 compliant maiden resource of 1.6 million silver equivalent ounces was reported.
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.
More details on the Company, its assets and its objectives can be found on PXC's website at www.phoenixcopperlimited.com.
NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM
Details of the person discharging managerial responsibilities/person closely associated
i) Marcus Edwards-Jones
ii) Ryan McDermott
iii) Richard Wilkins
iv) Roger Turner
v) Dennis Thomas
vi) Andre Cohen
vii) Jason Riley
Reason for the notification
i) Executive Chairman
ii) Chief Executive Officer
iii) Chief Financial Officer
iv) Chief Technical Officer, Non-Executive Director
v) VP Investor Relations, Non-Executive Director
vi) Non-Executive Director
vii) Non-Executive Director
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
Phoenix Copper Limited
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
Description of the financial instrument, type of instrument:
Shares of nil par value each
Nature of the transaction:
Subscription in Fundraising
Price(s) and volume(s):
Date of the transaction:
27 May 2020
Place of the transaction:
Outside a trading venue
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