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(Alliance News) - Phoenix Copper Ltd on Friday said that it is at "advanced stage" negotiations with investors for the proposed copper bond financing of its Empire mine project.
The Idaho-focused base and precious metals explorer said relevant documentation for the bonds has been finalised and the security recorded with the Custer County recorder in Challis, Idaho.
Phoenix also confirmed the deposit of the bonds with the settlement agent, but said that issuance remains contingent on "the satisfactory conclusion of discussions with interested bond investors".
The bond financing will provide construction funding for the Empire open-pit copper mine in Idaho, in which it holds an 80% interest, the company said.
In September, the company undertook metallurgical testing at the Empire mine, which showed possible "robust" copper, gold and silver recoveries.
Phoenix also provided an update on its short-term loan facility.
The USD2.0 million facility, first announced in March, was extended in June, November and, most recently, in December to January 2.
The company said that the extensions were to allow for a resolution of its proposed copper bond issue.
Phoenix has now confirmed that it is in negotiations with the unnamed lender to enlarge the facility to provide Phoenix Copper with additional working capital.
The company said: "the directors remain confident that the bond financing will close and that the facility will be rolled into a new facility", and that further announcements relating to both matters will be made "as appropriate".
Shares in Phoenix Copper were down 2.7% at 18.25 pence each in London on Friday morning.
By Hugh Cameron, Alliance News reporter
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