Phoenix Copper Limited Extension of Loan Facility (2558W)

TIDMPXC

RNS Number : 2558W

Phoenix Copper Limited

11 December 2023

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

11 December 2023

Phoenix Copper Limited

('Phoenix' or the 'Company')

Extension of Loan Facility

Phoenix Copper Ltd (AIM: PXC, OTCQX ADR: PXCLY), the AIM-quoted USA-focused base and precious metals company confirms that the Initial Term of the short-term $2,000,000 loan facility, first announced on 24 March 2023 (the "Loan Facility"), has been extended until 2 January 2024. Although the Loan Facility can be extended until 23 March 2024, whilst the Loan Facility remains within the Initial Term, the lender is not entitled to convert principal or other amounts into the Company's ordinary shares.

The Company has requested this extension in order to allow further time to conclude ongoing discussions with various investors regarding the Company's proposed corporate copper bond issue, as disclosed in the Company's interim accounts dated 28 September 2023. Although there can be no certainty until the bonds have been issued and settled, the Company confirms that these discussions are at an advanced stage and the Directors remain confident that the bond issue will close, thus allowing the Company to have access to the relevant construction funding when required.

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 inaugural 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 or contact:

 
 Phoenix Copper            Ryan McDermott                          Tel: +1 208 
  Limited                   Brittany Lock                             954 7039 
                            Richard Wilkins                        Tel: +1 208 
                                                                      794 8033 
                                                                 Tel: +44 7590 
                                                                       216 657 
 SP Angel Corporate        David Hignell / Kasia Brzozowska        Tel: +44 20 
  Finance LLP (Nominated                                             3470 0470 
  Adviser) 
                          -----------------------------------  --------------- 
 Tavira Financial          Jonathan Evans / Oliver Stansfield      Tel: +44 20 
  Limited (Joint                                                     7100 5100 
  Broker) 
                          -----------------------------------  --------------- 
 WH Ireland (Joint         Harry Ansell / Katy Mitchell            Tel: +44 20 
  Broker)                                                            7220 1666 
                          -----------------------------------  --------------- 
 Panmure Gordon            John Prior / Hugh Rich / Ailsa          Tel: +44 20 
  (UK) Limited (Joint       Macmaster                                7886 2500 
  Broker) 
                          -----------------------------------  --------------- 
 EAS Advisors (US          Matt Bonner / Rogier de la            Tel: +1 (646) 
  Corporate Adviser)        Rambelje                                  495-2225 
                          -----------------------------------  --------------- 
 BlytheRay                 Tim Blythe / Megan Ray                  Tel: +44 20 
  (Financial PR)                                                     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/

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December 11, 2023 02:00 ET (07:00 GMT)