TIDMPXC
RNS Number : 9900X
Phoenix Copper Limited
11 January 2022
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
11 January 2022
Phoenix Copper Limited
(" Phoenix " or the "Company")
Acquisition of additional Empire Mine production royalty
Appointment of Joint Broker
Phoenix Copper Ltd (AIM: PXC; OTCQX: PXCLF; OTCQX ADR: PXCLY),
the AIM quoted USA focused base and precious metals emerging
producer and exploration company, is pleased to announce that it
has entered into a further agreement with Honolulu Copper
Corporation ("Honolulu") to acquire the remainder of the 2.5% net
smelter royalty ("NSR") payable on future production from the
Empire Mine property, which includes the Empire Mine Oxide
open-pit, the Red Star silver - lead project, and the historically
mined sulphide deposit below the open pit, in Idaho, USA.
Pursuant to the terms of the agreement, Phoenix has acquired the
remaining 1.25% of the 2.5% Honolulu NSR for an additional payment
of $450,000. As reported by the Company on 27 October 2021, the
Company purchased an initial 1.25% of the Honolulu NSR, and all of
Honolulu's patented and unpatented mining claims, as well as 1% of
the 2.5% NSR payable to Mackay LLC ("Mackay") for a total
consideration of $1.3 million, $800,000 of which has been paid with
$500,000 payable in two further installments of $250,000 each, due
on 31 December 2022 and 31 December 2023 respectively.
Following the acquisition of the NSR, Konnex Resources Inc, the
Company's 80% owned Idaho registered subsidiary and operator of the
Empire Mine (" Konnex "), will pay a 2.5% NSR to Phoenix from
future production originating on the former Honolulu claim block,
and a 1.5% NSR to Mackay plus a 1% NSR to Phoenix from future
production originating on the Mackay claim block, based on the
order in which the respective claim blocks are mined.
Richard Wilkins, Chief Financial Officer of Phoenix Copper,
commented: "Our preliminary economic model for the Empire open pit
mine, which is based on a $3.60 copper price, forecasts gross
revenue of $836 million over an initial 10-year project life. The
entirety of the Honolulu 2.5% NSR now payable to Phoenix, plus the
1% NSR purchased from Mackay LLC, should therefore represent
significant additional revenue to Phoenix over the same period and
is intended to contribute additional funds to the corporate
dividend policy which we plan to adopt for the benefit of our
shareholders in due course."
Appointment of Joint Broker
The Company is also pleased to announce that it has appointed
Tavira Securities Limited ("Tavira") to act as joint broker with
effect from 1 January 2022. Tavira has recruited senior personnel
from the Company's previous joint broker, Brandon Hill Capital
Limited ("Brandon Hill"), and accordingly both Brandon Hill and the
Company have terminated their relationship from that date and by
mutual consent.
Environmental, Social and Corporate Governance
Phoenix is committed to meeting and exceeding the environmental
standards required by law as a core value of the Company. The
baseline environmental data collected to date will be used for
furthering the permitting process, but as importantly, will be used
as the building blocks for the Company's ongoing Environmental,
Social, and Corporate Governance (" ESG ") platform, overseen by
the Company's ESG & Sustainability Committee.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 which has been
incorporated into UK law by the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Contacts
For further information please visit https://phoenixcopperlimited.com or contact:
Phoenix Copper Limited Ryan McDermott Tel: +1 208 954
Dennis Thomas 7039
Richard Wilkins Tel: +44 7827
290 849
Tel: +44 7590
216 657
SP Angel Corporate David Hignell / Caroline Rowe Tel: +44 20 3470
Finance LLP (Nominated 0470
Adviser)
------------------------------------ ---------------------
Tavira Securities Jonathan Evans / Oliver Stansfield Tel: +44 20 7100
Limited (Joint Broker) 5100
------------------------------------ ---------------------
WH Ireland (Joint Harry Ansell / Adam Pollock Tel: +44 207 2201666
Broker) / Katy Mitchell
------------------------------------ ---------------------
Panmure Gordon (UK) John Prior / Hugh Rich / Ailsa Tel: +44 20 7886
Limited (Joint Broker) Macmaster 2500
------------------------------------ ---------------------
EAS Advisors (US Matt Bonner / Rogier de la Rambelje Tel: +1 (646)
Corporate Adviser) 495-2225
------------------------------------ ---------------------
Blytheweigh Tim Blythe / Megan Ray Tel: +44 20 7138
(Financial PR) 3204
------------------------------------ ---------------------
Notes
Phoenix Copper Limited is a USA focused, base and precious
metals emerging producer and exploration company, initially
targeting copper and zinc production from an open pit mine from
late 2022.
Phoenix's primary operations are focused near Mackay, Idaho in
the Alder Creek mining district, at the 80% owned Empire Mine
property, which historically produced copper at grades of up to 8%,
as well as gold, silver, zinc and tungsten, from an underground
mine.
Since 2017, Phoenix has carried our extensive drill programmes
which have defined a NI 43-101 compliant PEA (preliminary economic
assessment) for an open pit heap leach solvent extraction and
electrowinning ("SX-EW") mine, which was updated in October 2020.
The contained metal in all NI 43-101 compliant categories of
resources, measured, indicated and inferred, stand at 129,641
tonnes of copper, 355,523 ounces of gold, 10,133,772 ounces of
silver and 58,440 tonnes of zinc. Phoenix updated its economic
model in February 2021 to include the processing of all contained
metals through a two phased approach.
In addition to Empire, the district includes the historic
Horseshoe, White Knob and Blue Bird Mines, past producers of
copper, gold, silver, zinc, lead and tungsten from underground
mines. A new discovery at Red Star, 330 metres northwest of the
Empire Mine proposed open pit, has revealed high grade silver /
lead sulphide ore and from three shallow exploration drill holes a
maiden resource of 103,000 tonnes containing 173.4 g/tonne silver,
0.85 g/tonne gold and 3.85% lead (1.6 million ounces silver
equivalent) was reported in an NI 43-101 technical report published
in May 2019. Additionally, the district includes Navarre Creek, a
volcanic hosted precious metals target in a 14.48 sq km area. The
Company's total land package at Empire comprises 8,034 acres (32.51
sq kms).
At Empire, it is estimated that less than 1% of the potential
ore system has been explored to date and, accordingly, there is
significant opportunity to increase the resource through phased
exploration. The stated aim of the Company is to fund this phased
exploration through free cashflow generated by its initial mine. A
Plan of Operations in respect of the initial open pit mine was
filed with the relevant regulatory authorities in June 2021.
Phoenix also has two wholly owned cobalt properties on the Idaho
Cobalt Belt to the north of Empire. An Earn-In Agreement has been
signed with Electra Battery Materials Corporation (formerly First
Cobalt Corporation), Toronto, in respect of one of those
properties.
More details on the Company, its assets and its objectives can
be found on PXC's website at https://phoenixcopperlimited.com.
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