The big question for me that is currently unanswered is the terms of the loan.
We know that our copper bonds in the right circumstances could be paying 20% interest (and the revenue from the copper would be huge also). Would be very unfair if we are not at least recovering the cost of the funding, given we are taking on all the risk.
Would be interesting if we got an additional royalty that covered some of the potential interest uplift.
Raises a lot of questions, but at least they are moving things along. |
the start of a great Houdini escape?
or shuffling burning deckchairs on the Titanic whilst the band play on and the last of the lifeboats slip into the icy waters…?
No mention of NIU.
No mention of bond monies.
Is this just a way to syphon off the last of the cash into the subsidiary before the whole thing goes bang?
Isn’t this just the PXC way, more questions, never any answers. |
He was only “pleased”; to have reached an agreement, not “very pleased” or “excited”; lol
Previously he’s said…
May 2024
“Ryan McDermott, Chief Executive Officer, commented: "I am very pleased to report
July 2022
“Ryan McDermott, Chief Executive Officer, commented: "We are excited to announce |
Imo this is bottom and I added further.
Gonna fund one of its subsidiaries, Ergo which implies to me that they are gonna have access to some funds, add in comments by CEO, and I believe the Phoenix will rise from the ashes :-)
Ryan McDermott, Chief Executive Officer, commented: "I am pleased to have reached an agreement with our partners at ExGen that significantly simplifies our relationship, and enables the construction of the Empire Open-Pit to be funded by one co-ordinated shareholder loan managed by Phoenix, rather than two shareholder loans on potentially different terms. Both parties look forward to working together to bring the Project into profitable production as soon as possible and I look forward to providing our shareholders with further updates in due course.". |
It all looks underhanded and dodgy
In the annual report PCX has lent $29m to Konnex and KPX, PXC market cap £10m |
 I had always believed(rightly or wrongly) that if exgen could not put up their 20% of start up monies then their 20% ownership of the mine was to be transferred to PXC ownership as exgen had defaulted.
Did I not read a couple of years ago that exgen had sold their royalty amount(roughly 2%) to a third party?
Jason Riley, is head of Konnex resources and part owner of exgen along with Richard Wilkins. Please correct me if I am wrong here.
If a Company cannot put up the funds and would therefore lose its interest in a business venture, the business becoming owned by 1 party, why on earth would that 1 party loan that non payment Company funds to stay in that business venture.
It does not make sense to me that the 1 party is now taking on 100% of the risk.
This is bad business for the shareholders of the 1 party as they have just lost 20% of the business and 20% of the profits but are increasing their risk factor.
Is this happening because both JR and RW are involved in a small close knit group of people associated with PXC.
Someone please correct me on these thoughts as I cannot understand the logic in the loan to exgen |
This announcement simplified things considerably. The 100k annual fee and 500k annual spend requirements are waived, as is the BFS supported by 2 offers of financing before ExGen would be required to provide their 20%. So any funding now "just" needs to cover the project, and it is all much simpler for any third party to understand.Obviously the company still needs to resolve the questions about funding that have been raised on this board. This RNS covers something different: the relationship with ExGen. |
There was never any clarity about how exgen would fund their 20%. They were always likely to have to borrow the cash. This simplifies the issues, and at the same time exgen have agreed to waive the requirement of a bankable feasibility study and minimum annual spends. Not hard to see how the current situation has exposed the need for that, but this is a clear advance, even if not the one on the topic that matters most! |
NIU aren't funding anything |
trader - NIU are funding it, and don't require a BFS.
Potentially the differing funding arrangements between themselves and ExGen was a stumbling block, now resolved. |
Without a BFS, obtaining financing for a mining project is highly unlikely, as it is considered a fundamental step in de-risking the investment
With this new loan the debt will higher than the market cap of the company
Where has all the money gone? |
Re-reading - looks as though this de-tangles the arrangement re ExGen funding and NIU funding - both potentially on differing terms. ExGen potentially might also have had funding issues themselves...maybe NIU not content with them standing to one side and not contributing their share??
The loan now being repaid back through project income/profits
PXC now fund 100%, remove some obligations on project spend and the need for a BFS |
I'm not pretending that this is going to be OK, but hopefully this is the ironing out of some cracks that NIU require, before they fully commit. |
Shuffling deckchairs...we cant show any certainty of PXC funding any development at the moment and will be running out of central operating funds within six months and currently have debt of $7m and have all but exhausted funds raised earlier this year ..with little to show for that spending ...so what do they do..agree to lend the connected party minority holder in Empire money they haven't got themselves. Bizarre times. |
You are talking absolute rubbish. |
It's not at all clear that's what it says. Work will now all be funded via PXC, rather than a separate source for Exgens share, plus a bankable feasibility study and minimum annual spends no longer needed. It's doesn't say anything about where PXC will source the cash to loan to exgen |
Dorset,
Have to agree - is Martin Hughes loaning pxc the funds here to keep things going in the interim? |
On first read my immediate thoughts are that it confirms the relationship with NIU has totally broken down.
PXC asked for the next tranch of funds, some of which would no doubt be used to pay this interest etc but was not forthcoming. Now it appears they have persuaded a person to loan them the money until it may be repaid in the future by others.
This confirms NIU are not putting any more funds in imo. |
I think he should have added “everything is falling apart for Phoenix” |
The RiverFort loan is already having to be repaid in monthly tranches..as well as deriving the 15% interest rate, as announced in march ..the existing loan just over $2m was treated as first drawdown...no other drawdowns can be made until they have received $25m from the copper bonds..chance would be a fine thing."The First Drawdown and any further drawdowns have a 90-day repayment holiday and are then repayable in equal monthly instalments over the following 15 months."They will also be in technical default on the Copper Bonds if they failed to meet interest payments irrespective of NIU failing to meet its funding obligation..but that would likely be decided in court."Marcus Edwards-Jones, executive chairman, added that everything is falling into place for Phoenix."May 2024hTTps://www.proactiveinvestors.co.uk/companies/news/1047714/phoenix-copper-raises-us-80m-in-bond-finance-as-stars-align-1047714.html |
Richard Wilkins is also on the board of GRL so linked to the crooked goings on there too. Here’s a couple of links to where I mentioned this before
Why did they buy ball mills when they have no ore to grind? |
sportbilly197618 Dec '24 - 09:41 - 12324 of 12331
0 2 0
"...imagine if..."
...and then insert any comment to suit your current trade position / Company opinion
lol - yeah. I literally then added my company opinion (it's a comments board, right?)
Only the gullible are still here. I was gullible too for waaaaay too long and took a beating. No position anymore, and I must say that despite the huge loss - getting out when I did and at least preserving SOMETHING from this horror show has made me feel a whole lot better. The sooner others do the same the better IMO, though each to their own.
How anyone can stay invested here despite the insane numbers of red flags, and watch on while DP spouts the stuff he does is utterly beyond me. |
Ball Mills which are sitting idle, because we can't progress with the project until we get more funding. |
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