Member Info for BritishPeculeum

MTSparky, it’s conjecture, there is nothing I have found to suggest that EXG has step-in rights. Unfortunately we do not know what was agreed in the terms when EXG sold the 80% stake in Konnex Resources Inc to PXC. Step-in rights in the event of an insolvency event of PXC would not necessarily require a reimbursement by the beneficiary of what the company has spent. It would depend of the terms of the rights vested.

* All bodes well for EXG looking forward…

Disco, that’s a very good question, one which I have spent many an hour considering. Under the subject heading “PCC”, I have given you a fairly lengthy synopsis of where I believe we are in terms of this investment. Your own legal expertise may cast additional light on the points that I have raised, and I would be pleased to hear your perspective. Suffice to say that I am of the opinion that EXG is the most effective means to “the action” so far as an investment in the Empire mine is concerned. I originally invested in PXC when NIU first invested in the bond. This arrangement between NIU and PXC went sour in or around late 2024, at around the same time that the Revised Carry Agreement between PXC and EXG was executed. It’s my contention that NIU went away as a result of impracticalities in the relationship between PXC and EXG, which resulted in a hurried Revised Carry Agreement intended to either save the NIU bond deal, or reincarnate an alternative bond deal. Unfortunately however, the Dec 24 Revised Carry Agreement took PXC deeper into the mire, by ultimately handing the cards to EXG, who now have the ultimate sanction over PXC’s funding options.

After PXC’s collapse, I looked into EXG and considered that in the event of an insolvency event in PXC, the Dec 2024 Revised Carry Agreement would still apply, putting EXG in the position of being the only vehicle capable of lifting the condition. As a result, I decided to invest in EXG as a hedge. I have since continued to invest funds in EXG as the news has flowed regarding their merger with MTB and silver stream investments. All bodes well for PXC looking forward… whereas for PXC, things loom heavy as I see them.

AIMHO

GLA

DYOR

Disco12… I don’t necessarily think that EXG is the vehicle that will lift PXC out of its current malaise. But I do think that EXG has significant influence over how PXC will do so. Bear in mind that EXG originally disposed of its 80% share in Konnex Resources to PXC. I wouldn’t be surprised if EXG retained some form of step-in rights to PXC’s shares in Konnex Resources in an insolvency event occurring in PXC. Furthermore, under the terms of the revised Carry Agreement from Dec 24, any funding deal that PXC agrees is subject to ultimate sanction by EXG. Personally, I believe that EXG has PXC ransomed, which is the reason why PXC can’t raise funds for the Empire venture. I believe that PXC has tried to play its way out of this by assuming that EXG would run out of liquidity before PXC, but EXG’s recently -completed merger with MTB, and EXG’s recent silver streaming deals have all but scuppered that position from PXC’s perspective.

PXC, as I see it, is well and truly hamstrung, and EXG is in the driving seat. It is only a matter of time before PXC will have to concede its position in control of Empire, and only EXG is in a position to benefit from it.

AIMHO

DYOR

Disco12… EXG is listed on the TSX (Toronto Stock Exchange).

Trek I am with you 100%. There is a lot of ramping and manipulating that goes on on this page, that is really not helpful. I don’t like it, and yet as you say, everyone should be entitled to say what they want on these BB’s, and that unfortunately includes the rampers and manipulators.

Disco… in other words EXG is fully carried on everything except the “Honolulu Royalty” and the “McKay Royalty”.

Disco, my understanding is that all of PXC’s holdings are an 80% interest in Konnex Resources Inc, apart from Phoenix retains certain royalty rights acquired earlier than the “Empire Project” (the “Honolulu royalty” and “Mackay royalty”), and these remain held independent of Konnex’s interests.

The legal owner of the mining leases / claims for the district (including Empire, and by extension the expanded claim area) is Konnex Resources, Inc.

Phoenix expanded the claim area from what was initially ~818 acres to now a large consolidated claim block (at times described as 32.51 km² or around 8,434 acres / ~34 km²) — All of those additional claim blocks identifies the historical mines (Horseshoe, White Knob, Blue Bird) as part of its “portfolio” along with new exploration targets (e.g. a “Red Star” silver-lead vein, and the Navarre Creek gold area). All of these areas are held in PXC’s 80% interest in Konnex Resources Inc.

100%, MTSparky. Something… anything…

Sp28 thanks for the reminder. The appreciation in the value of metals has been the key factor that has kept me invested here. PXC Board’s inaction could be a blessing in disguise. At some point however, all of this value in the ground does become academic if PXC can’t secure funding.

The BOD’s investing today is positive but until that RNS confirming funding in place is published, we still live entirely reliant on hope.

Bilko’s Buddy, or Darren at MTL… he’d have had this situation sorted in no time.

MTSparky It would be odd if the BOD’s have put their money where their mouth is, unless or until Mr Mystery has shown some commitment on these Bonds. Let’s go PXC!!

MTSparky I don’t see how this can be the bottom, if the Board at some time in the future, come to the market with an RNS to say that the bond investor has gone away.

ScottJ fundamentally though I agree, that it’s simply not enough effort, and not good enough from the Board. The Board has made a decision to back the only horse in the race for these bonds. They have invested in a strategy that has put them at the mercy of one single investor with a capital instrument that as you put it, has an almost 100% certainty, of failure.

What then, if this bond raise comes to nothing?

ScottJ, the undisclosed proposed bond investor has been there for at least six months. There has, as Isas rightly says, been weekly contact with him. This was reported to be so at the investors’ catch-up in the summer.

That’s time and energy in most people’s book, surely?

ScottJ, if the chances of getting Bond investment are so slim, it perhaps goes part of the way as to why this BOD’s are investing so much time and energy in sticking with this mystery investor. He’s got PXC right where he wants.

Rocka999 to me, it looks like a decent update from BATS, so not sure why markets have pulled back on sp this morning.

Antibacterial there are a lot of valid points that you make. Maybe it is as simple as the economics to mine the Open Pit are marginal at best. We have limited information to know whether it is worth mining the Open Pit. As the macroeconomic outlook for copper continues to improve however, if everything else remains equal, then so should the investment case to exploit it. The problem is, is that time doing nothing is costing the Company money. We don’t actually know whether the Directors are drawing salary or not, but based on 2024 accounting information, it cost between $1.6m and $1.7m just to keep the lights on at PXC. It is prudent to use this information for estimating projected spend if PXC continues to stand still. The cost to service the debt will move PXC’s standstill costs towards $2m per annum as the Company continues to borrow more from Riverfort just to keep PXC alive.

And the other thing that you elude to in your post, that is absolutely clear to anyone looking in at PXC, is the highly questionable management credibility at Board level to see this project through.

Personally I would like to see PXC taken forward by an established miner, that has the cash and know-how to deliver this asset. Why has this not happened yet, considering the ever-increasing yawning gap between current market cap of PXC and NAV? There has to be a fundamental operational obstacle in the way that means that this proposition is untouchable, surely?

We don’t know the detailed contractual terms upon which PXC acquired its 80% stake in Konnex Resources, or perhaps more relevantly, we don’t know the detailed contractual terms upon which EXG disposed of an 80% stake in Konnex. What conditions are attached to this relationship in Konnex between PXC and EXG? These are the sort of fundamental reasons why parties; be it miners, investors or any other interests in the venture, might quietly walk away, having taken a look, and not consider turning back for a second look. If this is the case, is it realistic for the Board to assume that the problem will miraculously disappear with the introduction of a white knight investor at some point in time yet (or perhaps, ever) to be determined?

The prognosis for PXC’s survival is hanging by a thread as I see it.

GLA

DYOR

Wookie, nothing has actually happened in many many years here. It’s all mouth and no trousers from the Board. It has to be, because the Board has zero control over ARA’s decision-making.

As I have said before, ARA could (and possibly have) decided to do nothing for now, let the sp keep on dropping, and collect their winnings, which will be the remainder of the AEX stock for buttons, and take it private once the pipeline is complete.

I agree with everything that you say Mike. It’s an absolute shambles for sure. Trust and confidence in the BOD’s is shot to pieces, due principally to the absence of any communication/connection with shareholders of what is happening. The Board hides behind governance, yet there are a myriad of ways in which the Board can communicate progress without breaching the rules, but it has chosen for whatever reason not to. I’m sorry to hear that you were one of the many that took a bath on this. I’ve been very close to cutting my losses and walking away, but what I’ll actually get back in return for what I invested, I’m so far under water with it, I’m inclined to leave it in there on what is clearly nothing more than an expensive punt on a rank outside chance. I’ve actually gone “each way” by betting on EXG aswell. I think EXG’s chances of survival and success are significantly higher than those of PXC.

Time will tell. I wish you the best of luck.