Phoenix Copper Ltd (listed on AIM as PXC and on OTCQX as PXCLF) announced its intention to raise approximately £2.2 million through a mix of share placing, subscription, and a public offering, pricing the shares at 11.5p each.
The funds are earmarked for procuring equipment for the planned Empire mine in Idaho.
The company is currently in discussions to transform an existing short-term loan into a more extended-term financing arrangement with its current lender.
Additionally, Phoenix Copper is engaging with various investors regarding the possibility of copper bond financing to support the construction at the Empire site. The repayment for the short-term loan is scheduled for 23 March 2024.
Phoenix Copper also revealed that the pre-feasibility study (PFS) for the Empire open pit mine in Idaho is close to completion, with expectations to present it towards the end of this quarter.
In preparation for this, the company has received offers for certain operational equipment at significantly lower prices than their original cost.
Acquiring this equipment is expected to substantially reduce capital expenditure, positively influence the economic analysis in the PFS, and shorten the timeframe for procuring long lead-time items.
Furthermore, four board members, other senior management members, and some investors have confirmed their participation in the share subscription.
