Phoenix raises cash for silver deposit adjacent to Empire copper mine
Aim-listed Phoenix Copper has raised £850 000 (about $1.09-million) to develop the Red Star silver deposit adjacent to its proposed Empire openpit copper mine, in Idaho, US.
The company raised £340 000 by way of a subscription for new ordinary shares of no par value at 17p each, and £510 000 by issuing 12% unsecured loan notes.
It will also grant 650 000 warrants to the loan note holders, which will be exercisable at 20p each until July 31, 2022.
Phoenix stock jumped 14% to trade 15.40p each on Wednesday by 12:47 GMT.
"I am delighted to report on the fundraising, a portion of which has been raised via equity at a premium to our current market price, and the balance via non-dilutive debt financing,” said CEO Dennis Thomas.
The funds would be used to continue the sampling and drilling programme on the Red Star silver deposit and the polymetallic sulphide potential along strike towards four old underground mines worked in the first half of the twentieth century.
Assay results already returned from shallow drilling at Red Star include 62 oz/t of silver equivalent over a 1.5 m intersection and 26 oz/t over a 9.2 m intersection.
Earlier this year, Phoenix announced an NI 43-101-compliant maiden resource at Red Star of 1.6-million ounces of silver equivalent, returned from three drill holes.
"These funds will be used to expand the resources along strike and down dip. We plan to generate a mineable reserve on which to develop an underground mine and build a lead/silver flotation plant alongside the mine. This is the next phase in the development of what we firmly believe to be a world-class polymetallic mineralised ore system,” said Thomas.
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