Phoenix Announces Placing and Subscription to Raise £700,000
Phoenix Global Mining (“Phoenix”) has announced a placing at a price of 17p with a 1 for 4 warrant at 28p. Through a placing and subscription of 4,111,647 new ordinary shares, Phoenix has raise £700,000 before expenses.
The key points relating to this raise are:
• The Placing has been achieved at a premium of 13.3% to market, (to closing mid-price as at 22 May 2019) with a 1 for 4 warrant at 28p
• The placing is to accelerate the Bankable Feasibility Study on an open pit heap leach SX-EW operation to produce copper and zinc.
In today’s market it is an achievement to raise money at a premium to market, let alone 13.3%. The fund raising was supported by new and existing shareholders who see value in the project beyond the recent share price.
The proceeds will be used to further advance the Company's flagship asset, the Empire Mine in Idaho, United States of America. The proceeds will be applied to accelerate the Bankable Feasibility Study (“BFS”) on an open pit heap leach solvent extraction electrowinning (“SX-EW”) project, to produce copper and zinc, following the recently published updated NI 43-101 compliant resource (announcement dated 7 May 2019) which confirmed sufficient Measured and Indicated resources on which a BFS can be based. The Company expects the BFS to be completed in mid-2020, and production to commence in 2021.