Phoenix Copper (AIM: PXC) shares have plunged more than 50% after the company suspended its Executive Chairman and CFO pending an investigation into allegations over their conduct and historic payments to a former corporate finance adviser.
The firm said it has limited working capital, with cash expected to cover obligations only until early Q2 2026, and is exploring funding options, including discussions with Riverfort Global Opportunities PCC Limited over a short-term loan facility. Interim financial oversight measures have been put in place, and the Company Secretary role will be outsourced during the investigation period.
Update regarding the Company’s financial position
The Company currently has limited working capital and, absent any additional funding, the Board believes its current cash balances will provide sufficient working capital to meet ongoing obligations until early Q2 2026.
The Company is currently considering a range of both short term and longer term funding options and will provide shareholders with a further update regarding its fundraising strategy in due course.
Further to the announcement dated 27 January 2026, discussions with Riverfort Global Opportunities PCC Limited (“Riverfort”) regarding the terms of the Short Term Loan Facility remain ongoing. Shareholders will be provided with an update once the discussions with Riverfort have concluded, along with a further update regarding the Company’s financial position.
