RE: PXC7 Feb 2026 00:00
Oldpunter… it’s funny you should say that. You would have thought, wouldn’t you, that other miners with a growing cash pile looking to grow through acquisition - and let’s be honest, there are a fair few of them kicking around in the space atm - would have been all over this; I mean ALL OVER IT [emphasis added].
And yet all that we have news of, is some John Doe that threw his hat into the ring over 6 months ago, who entered into a non-binding LOI with the Company, saying that he might do something with PXC as and when the time suits him, on his terms, but then again, he might not.
I mean, WTAF?
Well, I would imagine that they have had plenty of such interest from existing miners, interested in taking this forward, and I would imagine that they have had plenty of interest from corporate lenders, similar to the one that previously signed into this venture, NIU.
But, and here is the rub, NIU walked away from this venture shortly after it committed to the Bond placement. Why? PXC’s BOD’s never disclosed why NIU walked away, but what we do know is that PXC scrambled to renegotiate the Carry Agreement between it and ExGen Resources, Inc. (TSX: EXG) shortly after the wheels came off with the NIU bond deal. I suggest you take a look at PXC’s December 2024 RNS for details of what was renegotiated with EXG. The timing of the EXG Carry Agreement renegotiation and the circumstances of the failure of the NIU bond deal both are too coincidental for there not to be a connection, IMHO.
If you don’t know, PXC’s interest in the mining assets at Empire mine in Idaho, USA is actually held in the shares of a holding company, Konnex Resources Inc. where PXC own 80% of the share capital, and the company that originally sold those shares to PXC, namely EXG, still retains a 20% carried interest. At some point after that original deal was done, probably at the point that the deal to extend the Empire Mine assets was closed-out, the board of PXC invited Jason Riley, Chairman, President and CEO of EXG to join the BOD’s of PXC as a NED.
What was renegotiated with EXG is the reason, IMHO, why none of what you quite sensibly suggested should happen, hasn’t happened, in that time since NIU fell out of bed in late 2024.
Have a look at the Dec 2024 revised Carry Agreement and let me know what you think. I’m all ears to hear something that’s plausibly less depressing than my take on it.
Good hunting, old Bean.
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