This Phoenix is rising from the ashes
Phoenix Copper (LON:PXC) is fully funded to start mining one of its rich, polymetallic deposits in Idaho, USA. Idaho is one of the most mining-friendly jurisdictions in the world and this is a significant advantage, both for the company and its investors. The Company’s highly experienced Board has a sharp focus on bringing the Empire Mine, which was originally shut in the 1940s, back into production by 2026. PXC holds an 80% stake in the Empire Mine, as well as Red Star (a silver deposit), Navarre Creek (a gold deposit) and significant exploration territory north of Empire with old mines and potential for new mines, together with 100% owned cobalt deposits. While most of this information might be old hat to those who have come across PXC in the past, the significant news is that the Empire Open-Pit Oxide Project is now fully-funded to production following the complete subscription of the $80m, 10-year life copper price-linked bond by a private equity investor in May 2024. Any savvy investor knows: the two biggest risks facing Junior Miners are repeated share dilutions for fundraising and dodgy jurisdictions. So logically, now that the financing hurdle for this safely located miner is fully overcome and the dilution threat has dissolved, the share price has rocketed, right? Wrong. Strangely enough in the case of PXC the market hasn't seemed to cotton on to the financing news yet. Or perhaps it’s the prospect of waiting until 2026 for production that is too distant for those wanting to make fast money? Either way, I believe patient PIs have a rare and potentially massive opportunity to buy before the full financial analysis is released in the coming months and the markets wake up to this unicorn.
Phoenix is advancing the Empire Open-Pit Project towards construction and production in 2026 . It plans to establish a mine with a 10-year life, based on a near-surface copper-oxide deposit with proven reserves of 10.1 million tonnes. Once operational and generating cashflow, Phoenix intends to use the funds to extensively drill and test the deeper sulphides within the property. The sulphide zone has been mined extensively throughout historic operations, indicating there is significant sulphide vein mineralisation present. Once cashflow positive, Phoenix will work towards defining a larger sulphide deposit beneath the oxide deposit and the potential tungsten – molybdenum…
