(Alliance News) - Phoenix Copper Ltd on Wednesday said it has raised GBP850,000 in gross proceeds by way of a subscription for new ordinary shares and the issue of unsecured loan notes.
The North America-focused base and precious metals exploration company said GBP340,000 has been raised by way of a subscription for 2 million new ordinary shares at 17 pence per share and GBP510,000 by way of an issue of 12% unsecured loan notes, repayable on January 31, 2021.
Shares in Phoenix Copper were trading 3.70% lower at 13.00 pence each in London Wednesday.
Proceeds of the fundraising will be primarily used by the company to develop the resources at its Red Star silver deposit adjacent to the proposed Empire Mine open pit copper project in Idaho, US, as well as for additional working capital.
Phoenix Copper Chief Executive Dennis Thomas said: "These funds will be used to continue the sampling and drilling programme on the Red Star silver deposit and the polymetallic sulphide potential along strike towards four old underground mines worked in the first half of the twentieth century.
"Assay results already returned from shallow drilling at Red Star include 62 ounces per tonne of silver equivalent over a 1.5 metre intersection and 26 ounces per tonne over a 9.2 metre intersection. Earlier this year we announced an NI 43-101 compliant maiden resource at Red Star of 1.6 million ounces of silver equivalent, returned from three drill holes," Thomas added.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Phoenix Copper. (PXC)