Refinancing of Short-Term Loan Facility
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Phoenix Copper Limited (AIM: PXC; OTCQX ADR: PXCLY), the AIM quoted USA-focused base and precious metals emerging producer and exploration company, is pleased to confirm that, further to the announcement on 19 February 2024, the Company has completed the refinancing of its US$2 million short-term loan facility (the "Existing Facility") into a new facility of up to US$10 million (the "New Facility").
The Existing Facility, plus accrued interest, is being treated as the first drawdown on the New Facility as at 2 March 2024 ("First Drawdown"). Further drawdowns under the New Facility are subject to the Company having first received at least US$25 million from its proposed corporate copper bond financing. Although there can be no certainty, the Directors remain confident that the bond financing will close. Further announcements relating to the bond financing will be made as appropriate.
Terms of the New Facility
| Total Amount | US$10m Unsecured Loan |
| Availability Period | 3 Years |
| First Drawdown | US$2.089 million |
| Interest | 15% per annum |
| Repayment | The First Drawdown and any further drawdowns have a 90-day repayment holiday and are then repayable in equal monthly instalments over the following 15 months. |
| Conversion Terms | The First Drawdown is convertible into shares of no par value in the Company at 20 pence per share (a 70% premium to the current share price) but cannot be converted for an initial period of 60 days after the First Drawdown, unless the Company's closing share price on the day prior to conversion is 30 pence or higher. Further drawdowns are convertible at a 40% premium to the average of the five daily VWAPs preceding the date of drawdown (the "Reference Price"). The Company is not obliged to make any further drawdowns. |
| Implementation Fee / Early Redemption | Implementation fee equivalent to 5% of each drawdown. The Company may redeem any amount prior to maturity, subject to an early redemption fee equal to 10% of the amount redeemed. |
| Warrants | The lender will receive warrants to subscribe for ordinary shares of no par value each in the Company equivalent to 40% of the pound sterling equivalent of the principal amount of each drawdown, divided by the Reference Price, with an exercise price equivalent to a 40% premium to the Reference Price, and valid for three years. The Company has granted warrants to subscribe for 3,300,874 ordinary shares in the Company in respect of the First Drawdown, with an exercise price of 20 pence per share expiring on 1 March 2027. |
Richard Wilkins, Chief Financial Officer of the Company, commented: "I would like to thank Riverfort Global for their ongoing support of the Company, and particularly the flexibility they have allowed us over the last 12 months. We now look forward to closing our corporate copper bond issue as soon as possible."
Since 2017, Phoenix has carried out extensive drill programmes which have defined a NI 43-101 completed PEA (preliminary economic assessment) for an open pit heap leach solvent extraction and electrowinning ("SX-EW") mine, which was updated in October 2020. From the 2020 PEA, the measured and indicated resource is 22,909,059 tonnes at an average grade of 0.38% copper, 0.324 grammes per tonne ("g/t") gold, 10.3 g/t silver, and 0.19% zinc. The contained metal for the measured and indicated resource is 87,543 tonnes of copper, 238,406 ounces of gold, 7,595,198 ounces of silver and 43,871 tonnes of zinc.
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 inferred resource of 103,000 tonnes containing 173.4 g/t silver, 0.85 g/t 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 16.09 sq km area. The Company's total land package at Empire comprises 8,434 acres (34.13 sq kms).
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.