Phoenix Copper. Regulatory News (PXC)

Phoenix Global Mining Ltd / Ticker: PGM / Sector: Mining

29 June 2017

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF IRELAND, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

Phoenix Global Mining Ltd

('Phoenix' or the 'Company')

Admission to AIM and First Day of Dealings

Phoenix Global Mining Ltd is pleased to announce the admission to trading on the AIM market of the London Stock Exchange plc ('AIM') of its entire issued share capital ('Admission') and commencement of dealings at 8.00 a.m. today under the ticker PGM.

Pursuant to a placing ('Placing') and subscription ('Subscription') to existing and new institutional and sophisticated investors, the Company has raised £4.6 million and, on Admission, the Company will issue 115,000,000 new shares of nil par value. The Company is expected to have a market capitalisation of c£9.2million on Admission. SP Angel is acting as the Company's Nominated Adviser and Brandon Hill Capital is acting as its Broker.

Highlights:

· Empire Mine in Idaho, USA, which is an historic copper mine, to be brought back into production and targeting 7,000t per annum of copper cathode from open-pit mining by 2020;

· Phase 1 initially focused on oxide resource development to deliver low cost open-pit production with an anticipated initial 10 year mine life - Pre-Feasibility Study underway;

· Phase 2 development focused on deeper, higher grade sulphide exploration and development, where intercepts up to 11.4% copper ('Cu') and additional metal credits including gold (drill results inc. 1.5m @26.4g/t), silver (drill results inc. 9m @ 126.6g/t) and tungsten (grab samples as high as 4.3%W03) have been recovered;

· Maiden JORC Resource (Measured and Indicated) of 7.263 million tonnes at 0.55 per cent. Cu with an additional inferred resource of 5.546 million tonnes at 0.51 per cent. Cu from the AP Pit; and

· Estimated that only 5% of the potential ore system explored providing opportunity to significantly increase resource through phased exploration.

· Historic work has provided extensive data that is being utilised to underpin the rapid development of the Mine including:

o c.US$7 million spent on drilling 287 exploration drill holes, which highlighted the grade continuity and extent of the mineralised system, including grades up to 13.5% Cu with thickness up to 67m, at an estimated cost of US$7 million in today's terms; and

o Metallurgical test work confirming recoveries of between 80-90% copper oxide ('CuO').

· Empire Mine is located in Custer County Idaho, USA:

o Idaho has a strong mining culture and history

o the Project is located in a strong mining jurisdiction with access to a local mining culture, laws and infrastructure; and

o Idaho ranked No. 12 globally in the Fraser Institute Annual Survey of Mining Companies.

· Copper outlook is positive with a price of c.US$5,800 per tonne - multiple drivers including electric vehicle industries.

· Experienced management who have successfully constructed, commissioned and operated mines in multiple jurisdictions.

Dennis Thomas, Phoenix's Chief Executive Officer, said, "We screened a multitude of projects and identified the Empire Mine as providing a fantastic opportunity to fast track a high-grade copper mine back into production in a stable and supportive jurisdiction. With a substantial amount of data already available, including historic drilling and a JORC Resource of 7.263 million tonnes at 0.55 per cent. Cu with an additional inferred resource of 5.546 million tonnes at 0.51 per cent. Cu from the AP Pit, we are confident that the Empire Mine offers significant value upside. Importantly, it is estimated that only 5% of the potential ore system has been explored. Accordingly, we have put in place a two-phase development strategy, firstly to rapidly exploit the shallow oxide resource for low cost open pit mining to produce 7,000t of copper per annum, and secondly, to develop the deeper higher-grade copper sulphide resources together with the additional metal credits, including gold, silver and tungsten.

"With funding secured and a dedicated and experienced Board at the helm, Phoenix is confident that its assets will generate significant value for shareholders. We are committed to fast tracking the Empire Mine into production to realise this and have already commenced a Pre-Feasibility Study for open pit development and initiated drilling to upgrade the current JORC resource. The next few months will, accordingly, be highly active and mark a significant step in the development of Phoenix Global Mining. We look forward to providing shareholders with timely updates as the work programme progresses."

**ENDS**

For further information please visit www.pgmining.com or contact:

1. INTRODUCTION

On Admission, Phoenix will own 80 per cent. of the issued shares of Konnex Resources Inc., ('Konnex'), thereby giving it operating control of the Empire Mine Project, which is a historic brownfield copper mine located in Idaho, USA. The remaining 20 per cent. of the issued shares of Konnex will be held by ExGen Resources Inc., ('ExGen'), a company listed on the Toronto Stock Exchange Venture Exchange ('TSX-V'). Konnex holds exclusive leases over the 55 mineral claims which comprise the Empire Mine Project.

The Empire Mine is a polymetallic skarn deposit and was discovered in 1884. The Empire Mine produced over 694,000 tonnes at 3.64 per cent. recovered copper plus gold and silver from 1901 through to 1942 from the underground copper sulphides. There is an extensive system of underground adits totalling 11.5 miles, which the Company plans to re-open for exploration and drilling work. The land package of 819 acres consists of 55 contiguous mining claims. Historically, exploration focused on the copper oxide resources on surface in an area known as the AP Pit. In total, 24,663m have been drilled on site to date from 287 drill holes at an estimated cost of US$7m in today's terms.

The maiden JORC resource is (Measured & Indicated) 7.263 million tonnes at 0.55 per cent. Cu, with an additional inferred resource of 5.546 million tonnes at 0.51 per cent. Cu from the AP Pit.

It is believed that work undertaken to date has exploited or explored approximately 5 per cent. of the overall ore system. Accordingly, the Directors believe that there is a significant opportunity to increase the existing copper oxide resources by drilling along strike in the AP Pit and to commence drilling the hitherto unexplored copper sulphide resources at depth and along strike from the open pit oxide resource.

Phoenix's management team includes both British and US nationals with considerable experience worldwide, with notable experience in the copper sector. The team has previously developed mining projects from exploration through to construction and operation of mines. Moreover, the Board has developed strong capital markets expertise arising from experience with other quoted companies on AIM and other international stock exchanges.

Idaho has a strong mining culture and history and is ranked 12th in the world in mining attractiveness according to the Fraser Institute's 2016 survey of mining and exploration companies, placing it ahead of North American jurisdictions such as Ontario, British Columbia, Colorado and Montana. It is a well-established mining location and the Empire Mine benefits from good local infrastructure.

The proceeds of the Placing and Subscription will be used, amongst other things, to fund the Pre-Feasibility Study and associated work to fast track the AP Pit into production based on leaching the copper oxide and processing in a Solvent Extraction-Electrowinning ('SX-EW') plant to produce copper cathode. The Company also intends to dedicate funds to commence the first systematic exploration programme of the copper sulphides and evaluate known by-products including cobalt and tungsten.

Phoenix's development strategy has been supported by a strong shareholder base of institutional and sophisticated investors who have, prior to the IPO, invested over £850,000 to fund work programmes, including the preparation of a maiden JORC resource, transaction costs for Admission and general working capital.

2. HISTORY

The Company was incorporated by Dennis Thomas, Roger Turner, and others, to evaluate base metals projects. The Board of Phoenix has reviewed a substantial number of mining projects since its incorporation and decided to focus on the Empire Mine for the following reasons:

· the Empire Mine has previously produced copper as well as gold and silver;

· there is an extensive amount of historic exploration and drilling, which the Directors believe mitigates geological and development risk;

· over 280 holes for 24,000m of drilling data is available;

· an extensive underground adit system of over 11.5 miles exists, which would significantly reduce the cost of any underground exploration and drilling;

· the Directors believe that there has been no systematic exploration of the copper sulphides at depth using modern technology and techniques;

· recent historical exploration programmes have focused on the copper oxide at surface in the AP Pit;

· the Directors believe that the copper oxide resource is capable of being fast tracked into production for a modest outlay, through a heap leaching and SX-EW operation, providing early cashflow;

· the Directors believe that there is significant upside by exploring for copper sulphide resources given the historical information reviewed;

· the Mine is located in a strong mining jurisdiction with access to a local mining culture, laws and infrastructure;

· the copper market has a favourable outlook and copper projects can be financed comparatively easily with equity, debt and offtake arrangements given that it is a widely understood commodity; and

· the Empire Mine is a good fit with management's experience and expertise.

3. STRATEGY FOR DEVELOPMENT OF THE EMPIRE MINE

The Company's strategy to develop the Empire Mine may be split into two phases, as detailed below, which will run concurrently. The immediate focus of the Company is Phase 1, which is to fast track the copper oxide resource in the AP Pit vicinity into production and generate cashflow as soon as practicable from the sale of copper cathode. The longer-term Phase 2 strategy, is to complete a thorough exploration programme of the copper sulphide system at depth and the associated gold, silver, zinc, cobalt and tungsten mineralisation evidenced in historic exploration programmes.

Phase 1 will focus on the development of a mine at the shallow copper oxide resource.

The Company has commenced resource drilling and expects to update the current JORC resource and complete the PFS within twelve months of Admission. The Company will then commence a Bankable Feasibility Study which will take up to a further twelve months to complete, before arranging project finance (which is expected to consist of a combination of debt, offtake agreements and equity) to begin construction of the mine. Subject to funding and permitting, the Company reasonably expects to commence production by 2020.

Phase 2 is focused on the wider exploration potential of the Empire Mine and sees the Company commencing an initial exploration programme to evaluate the copper sulphides, which lie underneath the AP Pit and along strike. The exploration programme will assay for gold, silver and zinc, which was mined historically and will evaluate the potential by-products including cobalt, tungsten and molybdenum. An independent technical report will be completed following the initial exploration programme.

4. COPPER SULPHIDES AND OXIDES

The most common copper mineral, and one that produces the majority of the world's copper supply, is chalcopyrite, a copper sulphide (CuFeS2) that contains 34.5 per cent. copper. This is the main primary copper mineral at the Empire Mine.

Through igneous activity this mineral can occur as either a vein deposit, massive sulphide deposit or as a disseminated "porphyry" deposit within an igneous intrusion. It typically occurs in association with other metals including iron in the form of pyrite (FeS2).

Near the surface these deposits are exposed to weathering where surface water generates dilute sulphuric acid, mainly from the pyrite, and turns the chalcopyrite into oxide minerals such as malachite, azurite and chrysocolla. These are the main copper oxide minerals in the AP Pit at the Empire Mine.

Below the water table this oxidation process ends and, in many cases, a zone of secondary sulphide copper minerals is deposited in what is termed the "enriched supergene" zone at the level of the water table, with minerals such as chalcocite and bornite. The unaltered chalcopyrite continues below the water table and is mined by either open pit or underground methods. In deeper holes drilled to the base of the oxide supergene zone in the AP Pit area, copper minerals typical of enriched supergene zones have been identified. The presence of these minerals, such as chalcocite and bornite in addition to malachite, azurite and chrysocolla, indicate that there is the high probability of a significant zone of enriched supergene mineralisation at the Empire Mine ore system.

5. THE EMPIRE MINE

The Empire Mine is located in the Alder Creek Mining District in Custer County, Central Idaho, US, approximately 5.5km southwest of the town of Mackay.

Access and Infrastructure

The Empire Mine is accessible from Mackay, Idaho, via a well-maintained, 5.5km long (3.3 miles), all-weather gravel road. Access throughout the claims, including to old workings and drill pads, is by four-wheel-drive vehicle along further gravel roads and tracks.

Mackay is a small town with a population of approximately 550, and is located 5.5km to the northeast of the Empire Mine. Mackay provides housing, services and basic amenities to support the employees of mines in the area. There are sufficient skilled and unskilled workers in and around the towns of Mackay and Challis (80km to the northwest) to supply the project. Supplies may also be obtained from Idaho Falls (150km) which is serviced by a regional airport, rail and major highways.

Climate and Environment

The Empire Mine is located on the north-eastern edge of the White Knob Mountains which reach an elevation of 3,437m, although the Empire Mine itself lies between 1,900m and 2,770m above mean sea level.

The terrain across the project is relatively steep as it sits on the eastern flank of Mackay Peak, with numerous ridges and gullies requiring many switchback bends in access tracks. The area is covered by a mixture of sparse forests, particularly on northern aspects, and open grassland.

The region has a semi-arid climate with annual average maximum temperatures ranging from -1.8°C in January to 27.9°C in July; average minimum temperatures of -13.7°C in January to 9.1°C in July; and rainfall between 11mm and 37mm in February and June respectively. Total annual rainfall amounts to 247mm and approximately 70cm of snowfall over the winter months. The Empire Mine is accessible all year round.

There are no known environmental liabilities on the Empire Mine.

6. DIRECTORS AND MANAGEMENT

Marcus Elliott Sturdee Edwards-Jones, 53, Non-Executive Chairman

Marcus graduated from Oxford University with an MA in Ancient and Modern History. He is Managing Director (and co-founder) of Lloyd Edwards-Jones S.A.S (which is acting as a Corporate Finance Adviser to the Company), a Paris and Dubai-based finance boutique specialising in selling equities to institutional clients and advising and introducing resources companies to an extensive client base in the UK, Europe, Asia and the Middle East.

Prior to founding Lloyd Edwards-Jones S.A.S, Marcus held senior positions with Julius Baer and was Head of UK & Continental European equity sales at Credit Lyonnais Securities in London.

Marcus has significant experience in global institutional capital raisings for UK, Australian and Canadian companies in the natural resources sector. He was until recently a director of Georgian Mining Corp.

Dennis Leslie Thomas, 69, Chief Executive Officer

Dennis has over 47 years of operational experience with notable expertise at technical, managerial and business development in the mining sector. He began his career working in mine production across Europe, Africa and Asia, notably with Anglo American, Irish Base Metals, and the Nigerian Mining Corporation. Since then he has developed new business development activities, including sourcing and identifying potential investment projects, evaluating minerals and commercial feasibility, negotiating lease agreements, and directing the start-up and development of projects.

Dennis has held a number of senior management roles including chief executive of companies within the Mining House Group where he developed copper, gold and coal resources in South-East Asia, and Non-Executive Director of Cariboo Gold, Rembrandt Gold Mines Ltd and St Genevieve Resources, ultimately selling the company's Nevada and Arizona copper assets to Advance Copper Corporation.

In addition to his significant operational achievement, Dennis has amassed a notable network of mining professionals and became a Director of Hunter Personnel (UK) Ltd, a personnel and recruitment consultancy firm which built a world-class reputation for the provision of quality personnel for the international mining industry. Over the years, it developed to become one of the world's leading databases of mining and extractive industries' professionals.

Since co-founding Phoenix in 2013 and assuming the role of Chief Executive Officer, Dennis' focus has been on the redevelopment of the Empire Mine, Idaho.

Dennis is a graduate of Camborne School of Mines, holding a First Class A.C.S.M. He is also a Fellow of the Institute of Materials, Mining & Metallurgy, a Fellow of the Geological Society of London, UK, and qualified Chartered Engineer (UK) and Registered European Engineer.

Richard Vaughan Lindsay Wilkins, 59, Chief Financial Officer

Richard is a graduate of Pembroke College, Oxford University, and a Fellow of the Institute of Chartered Accountants in England and Wales. After qualifying as a chartered accountant with Coopers & Lybrand, he worked in their London and Cairo offices until moving into private business.

Richard has considerable experience in emerging markets and the natural resources sector having been a founding director of the Zeravshan Gold Co. (Nelson Gold Group - TSX) in Tajikistan in 1994 and co-founder of the Oxus Gold Group of which he was a director from 1996 to 2017. Oxus produced over 500,000 oz. Au from the Amantaytau Goldfields Mine in Uzbekistan.

Roger William Turner, 74, Chief Technical Officer and Non-Executive Director

Roger is a graduate mining engineer from Camborne School of Mines with a M.Sc. degree in economic geology from Leicester University. He has an extensive mining career spanning over 40 years, including managing TSX and AIM listed companies and mining for copper at Granisle Copper in British Columbia, Hudson Bay Mining & Smelting in Manitoba, Falconbridge in Uganda and Rio Tinto Technical Services in London.

Roger was the CEO of Nelson Gold Group and was responsible for its TSX listing, financing, construction and commissioning of the Jilau gold mine in Tajikistan. He was a co-founder of Oxus Gold Group in 1996 and was the CEO of Oxus Gold Group from 1996 to 2002. He was responsible for the acquisition of Oxus's joint venture interest in Amantaytau and Khandiza projects in Uzbekistan and the Jerooy gold project in Kyrgyzstan.

More recently, he was the Chairman of Minco Plc and CEO of Ovoca Gold Plc both of which are quoted on AIM, and was a Director of Anglesey Mining Plc for nine years. He was one of the two founders of Phoenix Global Mining Limited in 2013.

Andre Cohen, 72, Non-Executive Director

Andre was Chief Executive Officer (and founder) of Coherent Financial Solutions, a UK based advisory company providing strategic and financing advice to transportation and infrastructure clients.

Prior to this, he held senior positions with West LB, where he was Head of Transportation Finance, TNT Ltd, where he was Finance Director, Europe and Citicorp in London and Australia in investment banking.

Andre has advised on significant debt fund raisings and investment in infrastructure assets for a number of international companies as well as being a non-executive director for a number of companies, listed and private. Andre is a graduate of Sydney and Yale Universities in Economics.

Senior Management

Ryan Kelly McDermott, 50, CEO of Konnex Resources Inc. and General Manager of the Empire Mine

Ryan graduated from Idaho State University with a Bachelor of Science degree in Geology and has over 30 years of experience in mining and mineral exploration for base and precious metals.

During his career, he has worked for SECOR International, Inc, Kinross Gold Corp, Plexus/Sovereign Expl and Kleinfelder West, Inc.

Prior to this, he was Director of Mining Operations for A2P, leading a team of 200+ engineers, geologists, miners and mill operators through the permitting and development of two underground gold mines, an underground polymetallic mine, an open-pit industrial garnet mine, two milling operations, and six exploration-stage gold properties in Idaho and Montana. He joined Konnex in March 2017.

Consultant

Philip Van Angeren, 61, Consultant Geologist, Empire Mine

Phil graduated from McGill University (Montreal) in Canada in 1977 with a BSc in Geology, and has considerable experience throughout North America in base and precious metals exploration and mining. He has been a member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA) since 1985.

Phil is experienced in the styles of mineralisation found at the Empire Mine, including skarn and associated porphyritic orebodies. Phil has previously been involved as a consultant at Empire Mine, where he worked on the planning and implementation of drilling programmes and on the geological evaluation of the property.

He brings a wealth of experience to Phoenix and has detailed knowledge of the area surrounding Empire Mine.

Important notices:

Full details of the Placing and the Subscription can be found in the Admission Document that is available on the Company's website www.pgmining.com.

The Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and the Shares may not be offered, sold, exercised, resold, transferred or delivered, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. Persons (as defined in Regulation S under the U.S. Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction in the United States. There will be no public offer of the Shares in the United States. The Company has not been and will not be registered under the U. S. Investment Company Act of 1940, as amended (the "U.S. Investment Company Act") and investors will not be entitled to the benefits of the U.S. Investment Company Act.

The Shares are being offered and sold outside the United States to non-U.S. Persons in reliance on Regulation S under the U.S. Securities Act.

This document does not constitute an offer to sell, or the solicitation of an offer to acquire or subscribe, for shares ("Shares") in the capital of Phoenix Global Mining Limited (the "Company") in any jurisdiction where such offer or solicitation is unlawful or would impose any unfulfilled registration, qualification, publication or approval requirements on the Company, Brandon Hill Capital Limited or SP Angel Corporate Finance LLP. The offer and sale of Shares has not been and will not be registered under the application securities law of Canada, Japan, Australia or the Republic of South Africa. Subject to certain exemptions, the Shares may not be offered to or sold within Canada, Japan, Australia or the Republic of South Africa or to any national, resident or citizen of Canada, Japan, Australia or the Republic of South Africa.

This communication is only addressed to, and directed at, persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive ("Qualified Investors"). For the purposes of this provision, the expression "Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing measure in each member state of the European Economic Area which has implemented the Prospectus Directive. In addition, in the United Kingdom, this communication is being distributed only to, and is directed only at, Qualified Investors (i) who have professional experience in matters relating to investments who fall within the definition of "investment professional" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) who are high net worth companies, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Order, and (iii) other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this communication relates is available only to and will only be engaged in with such persons. This communication must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons and (ii) in any member state of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors.

Information relating to the Shares may not be publicly offered in Switzerland and the Shares will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses under Article 652a of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under Articles 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering or marketing material relating to the Shares may be publicly distributed or otherwise made publicly available in Switzerland. Neither this document nor any other offering or marketing material relating to the Shares or the Company have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document has not been filed with, and the offering of the Shares will not be supervised by FINMA, the Swiss Financial Market Supervisory Authority.

**ENDS**