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Pin to quick picksPhoenix Copper. Share News (PXC)

Share Price Information for Phoenix Copper. (PXC)

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Share Price: 22.50
Bid: 22.00
Ask: 23.00
Change: 3.75 (19.48%)
Spread: 1.00 (4.545%)
Open: 19.25
High: 23.00
Low: 23.00
Prev. Close: 19.25
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Phoenix Copper acquires partial royalties on Empire Mine

Wed, 27th Oct 2021 14:11

(Sharecast News) - United States-focussed base and precious metals explorer and producer Phoenix Copper has entered into agreements with Honolulu Copper Corporation and Mackay to acquire part of the 2.5% royalty payable to each of them, as well as the Honolulu mining claims, under mining leases on the Empire Mine in Idaho, it announced on Wednesday.
The AIM-traded firm said that under the terms of the agreements, Phoenix acquired 1.25% of the royalty payable to Honolulu, including Honolulu's underlying patented and unpatented mining claims, and 1% of the royalty payable to Mackay, for a total consideration of $1.3m in cash.

It said $0.55m of that had already been paid, and $0.75m of it would be payable in three instalments of $0.25m each, due on 31 December in 2021, 2022, and 2023.

Following the acquisition, Phoenix's 80%-owned, Idaho-registered subsidiary Konnex Resources, which operates the Empire Mine, would pay a 1.25% royalty to Honolulu plus a 1.25% royalty to Phoenix, or a 1.5% royalty to Mackay plus a 1% royalty to Phoenix, based on the order in which the respective claim blocks were mined.

The board said the underlying patented and unpatented mining claims acquired from Honolulu would be owned by Phoenix's wholly-owned, Idaho-registered subsidiary Lost River Resources, and as a result, the mining lease with Honolulu had been terminated, and would be replaced by a new mining agreement between Konnex and Lost River with "substantially the same" terms as the prior lease.

Konnex's existing rights and obligations with regard to the Empire Mine would thus remain unchanged, and the terms of the mining lease with Mackay would also remain unchanged.

"Our preliminary economic model for the Empire open pit mine, which is based on a $3.60 copper price, forecasts gross revenue of $836m over an initial 10-year project life," said chief financial officer Richard Wilkins.

"The royalty now payable to Phoenix 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."

Wilkins said that as some of the mining claims covered portions of the potential Red Star silver-lead deposit, Phoenix would also benefit from the royalty otherwise payable to Honolulu or Mackay on Red Star, as well as on the deeper underground sulphide copper deposit, as and when those projects started to generate revenue.

"The patented mining claims now owned by Phoenix's 100%-owned Idaho registered subsidiary Lost River are considered fee simple, or private land, and the ownership includes both surface and mineral rights."

At 1340 BST, shares in Phoenix Copper were down 0

36% at 70.25p.
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24 Oct 2023 13:21

Phoenix Copper expands Navarre Creek claims as it assesses drilling

(Sharecast News) - Phoenix Copper updated the market on its 2023 Navarre Creek exploratory drilling programme in Idaho on Tuesday, as it assessed and analysed assay results from 28 reverse circulation (RC) drill holes.

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28 Sep 2023 18:29

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4 Sep 2023 13:30

IN BRIEF: Phoenix Copper notes metallurgical potential at Empire

Phoenix Copper Ltd - Base and precious metals explorer in the US state of Idaho - Says metallurgical test work at Empire mine shows possible "robust" copper, gold and silver recoveries. Says the test was completed by Forte Dynamics, which consisted of flotation processes as well as sulphuric acid leaching. Adds Navarre Creek drilling campaign is underway, with a total of 9.825 feet drilled so far.

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4 Sep 2023 10:57

Phoenix Copper upbeat on testing results from Empire Mine

(Sharecast News) - US-focussed Phoenix Copper announced successful results from its metallurgical testing at the Empire Mine open pit on Monday.

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17 Jul 2023 13:54

IN BRIEF: Phoenix Copper 2023 Navarre Creek drill programme underway

Phoenix Copper Ltd - Base and precious metals' explorer in the US state of Idaho - Says 2023 drilling programme underway at Navarre Creek exploration project in Custer County, Idaho. Says programme will comprise up to 60 reverse-circulation drill holes from 30 drill pads at the Navarre Creek claim block. Notes drill programme is to obtain a better understanding of mapping, surface geochemistry, mineral imagery and geomagnetic ground surveys.

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23 Jun 2023 15:35

Phoenix Copper extends $2m loan facility

(Sharecast News) - United States-focussed base and precious metals explorer and producer Phoenix Copper updated the market on the short-term $2m loan facility on Friday, which was first announced on 24 March.

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23 Jun 2023 15:25

CORRECT: IN BRIEF: Phoenix Copper extends loan facility

(Correcting that the loan facility is with Riverfort Global Opportunities PCC Ltd, not RiverFort Global Opportunities PLC).

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23 Jun 2023 10:43

IN BRIEF: Phoenix Copper extends loan facility by further three months

Phoenix Copper Ltd - base and precious metals explorer in US state of Idaho - Extends "short-term" USD2.0 million loan facility by a further three months. In March, Phoenix had signed the unsecured three-month loan facility carrying a fixed 4% coupon with High Wycombe, Buckinghamshire-based investment adviser RiverFort Global Opportunities PLC. At the time, it said the facility will strengthen operational working capital before the 2023 exploration season.

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6 Jun 2023 19:37

TRADING UPDATES: Woodbois strikes repayment deal with Sydbank

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Tuesday and not separately reported by Alliance News:

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25 May 2023 11:54

IN BRIEF: Phoenix Copper loss widens; says mining sector to normalise

Phoenix Copper Ltd - base and precious metals explorer in US state of Idaho - Pretax loss widens to USD1.6 million in 2022 from USD969,250 in 2021. Records no revenue, unchanged from the previous year. Phoenix Copper expects market volatility to remain until the war in Ukraine reaches a conclusion.

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12 Apr 2023 14:40

Phoenix Copper reports results from Red Star drilling

(Sharecast News) - United States-focussed base and precious metals explorer and emerging producer Phoenix Copper released assay results from the Red Star exploration drilling at the Empire Mine in Custer County, Idaho on Wednesday.

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12 Apr 2023 10:58

Phoenix Copper hails gold and silver find at Empire mine in Idaho

(Alliance News) - Phoenix Copper Ltd on Wednesday announced it completed its Red Star reverse circulation drilling at the Empire mine in Custer County, Idaho.

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24 Mar 2023 15:10

Phoenix takes $2m short-term loan as it finalises copper bonds

(Sharecast News) - US-focussed explorer and producer Phoenix Copper said in an update on Friday that it was finalising discussions with a number of parties to place up to $80m of corporate copper bonds, as it first announced on 8 June.

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24 Mar 2023 10:37

Phoenix Copper in talks to finalise placing of copper-linked bonds

(Alliance News) - Phoenix Copper Ltd on Friday said it was finalising discussions to place up to USD80 million of corporate copper bonds, initially announced in June.

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16 Mar 2023 20:21

TRADING UPDATES: Highbridge delays liquidation; Phoenix finds silver

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Thursday and not separately reported by Alliance News:

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