REG - Phoenix Copper Ltd - Drawdown of Bond Finance and Issue of Shares

Phoenix CopperAnnouncement

05/06/2024 12:45

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RNS Number : 2564R  Phoenix Copper Limited  05 June 2024

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

5 June 2024

Phoenix Copper Limited

('Phoenix' or the 'Company')

 

Drawdown of Bond Finance and Issue of Shares

 

Phoenix Copper Ltd (AIM: PXC, OTCQX ADR: PXCLY), the AIM-quoted USA-focused
base and precious metals company, is pleased to confirm that, further to its
announcement on 15 May 2024 and passing of the resolutions at the Company's
Annual General Meeting on 29 May 2024, the Company has received the first
tranche of US$5 million (the "Initial Drawdown") from NIU Invest SE (the
"Bonds Investor"), a European private equity company, against its US$80
million fully subscribed corporate copper bond issue (the "Bonds").

The net proceeds from the Bonds issuance will be used to fully fund the
construction of the Company's Empire open pit mine in Idaho, USA for the
production of copper, gold and silver, and for general working capital.

Against receipt of the Initial Drawdown, the Company is issuing the Bonds
Investor 33,884,031 new ordinary shares of no par value in the Company in lieu
of an arrangement fee ("New Ordinary Shares"), and warrants to subscribe at no
cost for a further 22,589,354 new ordinary shares in lieu of a drawdown fee
("Warrants"). The Warrants will vest pro-rata over drawdown of the first US$30
million of Bonds, and remain valid for a period of five years from Initial
Drawdown. Following the issue of the New Ordinary Shares, the Bonds Investor
will have an interest in approximately 18.36% of the total issued share
capital of the Company, with voting rights.

Cevdet Caner, the principal shareholder of NIU Invest, said: "Phoenix Copper
has solid fundamentals and experienced leadership and NIU Invest has great
confidence in the team's ability to deliver. This project advances our
strategy of investing in critical materials that are essential for driving the
transition to cleaner energy, the electrification of transport and the digital
revolution."

Marcus Edwards-Jones, Chairman of Phoenix Copper, said: "We are delighted to
have found in NIU Invest a strategic investor who shares our vision of
creating a new clean metals producer in the western United States and has
participated in this innovative form of financing linked to the copper price,
giving us a clear path to production."

Further information on NIU Invest SE can be found on https://niu-invest.com.

 

Application to trading on AIM

Application has been made to the London Stock Exchange for the admission of
the New Ordinary Shares to trading on AIM ("Admission"). Admission is expected
to become effective at 8.00 a.m. on or around 12 June 2024. The New Ordinary
Shares will be issued fully paid and will rank pari passu in all respects with
the existing issued ordinary shares of the Company.

 

Total Voting Rights

The total number of ordinary shares of no par value in the Company ("Ordinary
Shares") following Admission will be 184,535,054. For the purposes of the
Disclosure Guidance and Transparency Rules, shareholders may use this figure
as the denominator for the calculations by which they determine if they are
required to notify their interest in, or a change to their interest in, the
issued share capital of the Company. No Ordinary Shares are held in treasury.

 

Environmental, Social, and Corporate Governance

Phoenix is committed to meeting and exceeding the environmental standards
required by law as a core value of the Company. The baseline environmental
data collected to date will be used to further the permitting process, but as
importantly, will be used as the building blocks for the Company's ongoing
Environmental, Social, and Corporate Governance ("ESG") platform, overseen by
the Company's ESG & Sustainability Committee. The Company has recently
published its 2023 Sustainability Report, which can be viewed on the Company's
website.

 

 

 

 

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.

 

Contacts

For further information please visit  https://phoenixcopperlimited.com
(https://phoenixcopperlimited.com/) , or contact:

 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)                            Harry Ansell / Katy Mitchell                       Tel: +44 20 7220 1666
 Panmure Gordon (UK) Limited (Joint Broker)           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 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 ounces of gold and 4,654,400
ounces 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 (34.13 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 with Electra
Battery Materials, Toronto, 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/
(https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fphoenixcopperlimited.com%2F&data=05%7C02%7Cpaul.degruchy%40phoenixcopper.com%7Cd3c94638cd2a404fd97908dc4457be72%7C0ab43313efbd470e8b202b53ae10513d%7C0%7C0%7C638460390942473879%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=zDJLf9dFwaNJhQmfkjPJtPnIxiqtCJb%2F1IuX1s1r7kQ%3D&reserved=0)

 

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