Update on CLN conversion and metal prices
Phoenix Copper Limited announces a partial conversion of its $2.1 million convertible loan note, with $536,000 converted into 26,981,814 new ordinary shares at 1.483 pence per share, expected to be admitted to AIM on January 26, 2026. The company also highlights the significant positive impact of current metal prices on its 2024 Empire open-pit pre-feasibility study, projecting a cumulative pre-tax net cashflow of $405.80 million over 8.5 years, a 7.5% pre-tax NPV of $252.11 million, and a pre-tax IRR of 98.4% based on updated copper, gold, and silver prices. Following admission, the company will have 287,995,114 ordinary shares outstanding.
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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, announces a partial conversion of its $2.1 million convertible loan note ("CLN") issued to Indigo Capital LP ("Indigo"). The Company is also pleased to confirm the effect of increased metal prices on its 2024 Empire open-pit pre-feasibility study ("PFS") economic model.
Partial Conversion of CLN
Further to the announcement on 4 December 2025, the Company confirms that the CLN holder, Indigo, has converted $536,000 at 1.483 pence per share into 26,981,814 new ordinary shares of no par value in the Company ("New Ordinary Shares").
Application has been made for the New Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings will commence at 8:00 am on or around 26 January 2026.
The Company has been informed that Indigo has entered into agreements to divest 24,181,814 of the New Ordinary Shares to various equity funds and family offices in Europe and elsewhere, as soon as practicable following Admission.
Total Voting Rights
Following Admission, the Company will have 287,995,114 ordinary shares outstanding. Shareholders may use this number as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the issued share capital of the Company.
Potential Impact of Current Metal Prices on the 2024 Economic Model
The 2024 open-pit PFS economic model (the "2024 Model") was generated at the time using conservative, near-term trailing average metal prices of $4.45 / lb copper price, a $2,325 / oz gold price and a $27.25 / oz silver price. In order to illustrate the potential impact of current metal prices on the economics of the open pit, the Company has applied the following metal pricing to the 2024 Model; $5.58 / lb copper, $4,338 / oz gold and $70.73 / oz silver. Should these metal prices be maintained, the impact would be significant and would result in cumulative pre-tax net (after repaying estimated pre-production capital costs) cashflow of $405.80 million over the 8.5 year life of mine, as well as a 7.5% pre-tax Net Present Value ("NPV") of $252.11 million and a pre-tax Internal Rate of Return of 98.4%.
A comparison of the impact to the 2024 Model is summarised in the table below:
| Project Evaluation Overview | 2024 PFS Before Tax / After Tax | 2026 Before Tax / After Tax | % Change |
| Cumulative Net Cashflow (millions) | $152.98 / $132.44 | $405.80 / $350.89 | 165.3 / 164.9% Increase |
| NPV @ 5.0% (millions) | $105.44 / $89.55 | $293.85 / $252.34 | 178.7 / 181.8% Increase |
| NPV @ 7.5% (millions) | $87.86 / $73.75 | $252.11 / $215.67 | 186.9 / 192.4% Increase |
| NPV @ 10.0% (millions) | $73.29 / $60.71 | $217.34 / $185.17 | 196.5 / 205% Increase |
| Internal Rate of Return | 46.4% / 40.2% | 98.4% / 86.6% | 52 / 46.4% Increase |
The 2026 Before Tax / After Tax results presented above have been internally estimated by the Company and have not been verified by the Company's independent technical consultants or Qualified Person. The results of this comparison are illustrative only and are not intended to imply a change in the Empire open pit mineral reserve nor are they intended to imply a new or updated Empire open pit economic model.
The Company also refers to its ongoing discussions with the US based bond investor (the "Investor"), first announced on 12 June 2025. These discussions have taken longer than initially anticipated due to other transactions the Investor has been completing. Although there can be no certainty a definitive agreement will be reached with the Investor, the Directors look forward to finalising the discussions and progressing towards completion. The Company looks forward to providing shareholders with further updates as appropriate.
Since 2017, Phoenix has executed extensive drilling initiatives, resulting in an expansion of the Empire Open-Pit resource by over 200%. In May 2024 the Company published its inaugural mineral reserve statement for the Empire Open-Pit Mine. Proven and Probable mineral reserves are 10.1 million tonnes containing 109,487,970 lbs of copper, 104,000 oz of gold and 4,654,400 oz of silver. This reserve was estimated using assay data from 485 drill holes, extensive geological modelling, metallurgical recovery test work, geotechnical evaluation, and mine design. The reserve represents a combined 66,467 tonnes of copper equivalent metal.
In addition to the Empire Mine, Phoenix's holdings in the district also encompass the Horseshoe, White Knob, and Blue Bird Mines, all of which have been producers of copper, gold, silver, zinc, lead, and tungsten from underground operations, a new high-grade silver and lead orebody at Red Star, and the Navarre Creek gold exploration project, which was first drilled in 2023. The Company's land package at Empire spans 8,434 acres (34 sq km).
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.