Phoenix Global Mining* (PGM LN) 16.5p, Mkt Cap £6.4m – Raising £700,000 to advance Empire mine SXEW Bankable Feasibility Study • Phoenix Global Mining has announced that it has raised £700,000 though the issue of a further 4.1m shares at a price of 17p/share. The new shares are priced at a 13.3% premium to the closing mid-price on 22nd May and, we estimate, represent approximately 9.6% of the enlarged capital of the company. • The new shares carry a warrant, valid until 31st January 2022, entitling the holder to subscribe for a further share priced at 28p per share for every four of the shares currently being issued. • The additional funds are to used to “accelerate the Bankable Feasibility Study (“BFS”) on an open pit heap leach solvent extraction electrowinning (“SX-EW”) project, to produce copper and zinc” from the recently upgraded oxide mineral resource at the historic Empire mine in Custer County, Idaho. • Phoenix Global Mining “expects the BFS to be completed in mid-2020, and production to commence in 2021.” Important items to be addressed by the BFS include, “detailed mine planning and scheduling, additional metallurgical test-work, heap leach pads, ponds and process plant design, infrastructure design, environmental impact statement and project economic analysis.” • Commenting on the project in the light of the recent mineral resource upgrade and the financing, Chief Executive, Dennis Thomas, explained that “Given the advanced status of the project, our focus will now turn to project finance. We will seek to finance the project with a mix of debt and other instruments including offtake finance and we are progressing a number of these discussion in tandem with the BFS studies.” • Mr. Thomas went on to explain that “we are ultimately looking to minimise the issue of equity which has been required to develop the project to this stage. Management are significant shareholders in the Company and we hope to keep further equity dilution to a minimum.” In order to achieve this the company is examining “a mix of debt and other instruments including offtake finance” to finance project development. Conclusion: Raising additional funds to expedite the BFS for the Empire mine oxide project at a premium to the recent market price should help the company to deliver the BFS by mid-2020 as Phoenix Global Mining works towards initial production in 2021. *SP Angel acts as Nomad and broker to Phoenix Global Mining
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