(Alliance News) - Phoenix Copper Ltd said Thursday it has raised USD2.0 million through a share subscription and loan note issue, which will go towards funding a drilling programme at the Red Star silver deposit in Idaho, US.
The US-focused base and precious metals explorer issued 7.9 million shares at a price of 15 pence per share to raise GBP1.2 million, around USD1.5 million. It further issued unsecured loan notes, repayable on September 30, 2021, to raise GBP354,000, roughly USD459,500.
Shares in Phoenix Copper were up 6.3% at 10.10 pence on Thursday in London.
The drilling programme will commence immediately at the Red Star deposit adjacent to the proposed open pit copper mine at the Empire project. The funds will also provide the company with additional working capital.
"I am pleased to report on this fundraising, particularly the equity portion which has been placed at a 50% premium to our current market price. The new shares have been placed with existing shareholders demonstrating their ongoing support of the company and their belief in the underlying value of our assets," said Chief Executive Officer Ryan McDermott.
"These funds will enable us to systematically drill the known vein system at Red Star and build onto the existing inferred silver resource reported in 2018. The planned drilling programme will target resource expansion, initial metallurgy and process engineering and development engineering," McDermott added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Phoenix Copper. (PXC)