(Alliance News) - Phoenix Copper Ltd on Friday announced a successful raise of GBP16.5 million through a placing and a direct subscription, with the proceeds going towards its Empire Mine in Idaho.
Phoenix Copper is a North American-focused base and precious metals exploration and development company.
Phoenix Copper said it raised a total of GBP12.3 million via the placing of 35.1 million shares at an issue price of 35 pence per share.
The stock was down 12% at 36.01 pence each in London on Friday morning.
Phoenix Copper additionally announced it raised GBP4.2 million through a direct subscription with the company for 11.9 million new shares.
Phoenix Copper said qualifying shareholders may subscribe for new shares to raise a maximum of GBP2.0 million, on top of the GBP16.5 million already raised, via an open offer of up to 5.6 million shares.
The fundraising will primarily fund the development of the Empire Mine, the company said.
"Specifically the funds will be used for ongoing mine optimisation and pre-construction engineering, ongoing process engineering and metallurgical test work, and the preparation of the Plan of Operations and related reclamation plan," Chair Marcus Edwards-Jones said.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Phoenix Copper. (PXC)