Phoenix Copper raises $2m to expand resources at Red Star
The drilling programme, which is expected to commence immediately, will target resource expansion, initial metallurgy and process and development engineering.
"I am pleased to report on this Fundraising, particularly the equity portion which has been placed at a 50 per cent premium to our current market price,” said Ryan McDermott, Chief Executive of Phoenix.
The AIM-quoted North American focused company said that $1,540,500m (£1.185m) of the total sum had been raised by way of 7,900,000 Ordinary Shares at 5p each and $459,500 (£354,000) by way of a 12% issue of unsecured loan notes, to be repayable by the end of September 2021.
Phoenix will also grant a total of 450,000 warrants, not to be quoted on AIM, to the loan note holders to be exercisable at 16p a share and valid until the end of July 2021.
Shares in Phoenix Copper were trading 15.79% higher at 11p during Thursday trading.
"These funds will enable us to systematically drill the known vein system at Red Star and build onto the existing inferred silver resource reported in 2018,” added McDermott.
The Chief Executive said the placing was demonstrative of ongoing shareholder support and their beliefs in the company’s assets.
"The Company understands the importance of putting shareholder money to work in the field and the Red Star work programme will be no different,” he added.
The Red Star silver deposit is adjacent to the proposed open pit copper mine at the company’s Empire project in Idaho of which the company owns a 80% interest in.
Since acquiring the Empire project in 2017, Phoenix has increased the claim area from 818 acres to 5,717 acres to increase the potential for additional oxide and sulphide copper resources as well as stand-alone gold and silver resources.
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