Phoenix Copper. Regulatory News (PXC)

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

14 April 2020

Phoenix Copper Limited (the "Company" or "Phoenix")

Final audited results for the year ended 31 December 2019

Notice of AGM

Phoenix Copper Limited (AIM: PXC; OTCQX: PXCLF), the AIM quoted North American focused base and precious metals exploration and development company, is pleased to announce its audited results for the year ended 31 December 2019.

Highlights

Corporate & Financial:

- $3.3 million raised during the year

- $1.85 million raised since the year-end

- Investment in Empire Mine increased to $11.67 million (2018: $9.88 million)

- Net assets increased to $10.56 million (2018: $9.15 million)

- 32% decrease in net loss to $1.13 million (2018: $1.65 million)

- Phoenix loan to operating subsidiary increased to $8.3 million (2018: $6.3 million)

- Company name changed to Phoenix Copper Limited

- Ryan McDermott appointed as Chief Executive Officer

Empire Mine, Idaho, USA:

- Updated Measured & Indicated open pit resource containing 73,872 tonnes of copper, 29,813 tonnes of zinc, 139,000 ounces of gold and 6.038 million ounces of silver

- Maiden Inferred sulphide resource at newly discovered Red Star silver / lead zone

- Further drilling at Red Star to commence shortly

- Land acreage increased to 5,717 acres, including 2,420-acre Navarre Creek gold zone

- Completion of environmental studies for both Empire open pit resource and Red Star

- ESG Programme Coordinator appointed

The Company also announces that the Annual General Meeting ("AGM") will be held by webinar at 16.00 BST on 30 April 2020. Details of how to access the webinar platform and vote by proxy will be set out in the Notice of AGM.

The Notice of AGM and Forms of Proxy will be despatched to shareholders on 15 April 2020 and will be available on the Company's website at www.phoenixcopperlimited.com.

The Company's Annual Report and Consolidated Financial Statements for the year ended 31 December 2019 will also be available on the website from 15 April 2020.

COVID-19 Impact Statement

The Coronavirus pandemic has had a significant and immediate impact on the operations and funding of many businesses both in the USA and globally. However, mining was named an essential service under Idaho Governor Brad Little's recent stay-at-home order, so Phoenix employees are moving the Empire and Red Star Projects forward without delay. To protect the health and safety of its employees and the local community, the Company, in concert with community leaders, has developed an innovative plan that minimizes employee-to-employee contact and virtually eliminates contact with the community at large while allowing the Company to proceed with the Red Star drilling programme. The Company has closely examined the supply chain and is confident that all necessary equipment and supplies will be readily available for the drilling programme.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Contacts

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

Notes

Phoenix Copper Limited is a North American focused, base and precious metal explorer and developer, which has carried out a drilling programme and generated a copper, gold, silver and zinc resource on which it is carrying out a feasibility study to bring the historically producing Empire Mine in Idaho, USA, back into production. It is also evaluating the silver and gold resources around three other past producing mines within the 23 km2 Empire claims block as well as cobalt in two claims blocks north of Empire in Idaho.

Phoenix's primary operations are focused near Mackay, Idaho in the Alder Creek mining district. This district includes the historical Empire, Horseshoe, White Knob and Blue Bird Mines, past producers of copper, gold, silver, zinc, lead and tungsten from underground mines in the first half of the twentieth century. Additionally, the district includes Navarre Creek a Carlin-trend gold discovery which hosts a 6.1 km gold strike length within a 9.8 km² area.

Phoenix acquired an 80% interest in the historical Empire Mine property in 2017 and, based on a total of 320 drill holes, an oxide resource was completed in late 2017. A NI 43-101 compliant PEA (preliminary economic assessment) for an open pit heap leach solvent extraction and electrowinning ("SX-EW") mine was completed in April 2018. In 2018 a further 8,600 metres in 93 holes was completed to upgrade the oxide resources, provide samples for ongoing metallurgical test work, geotechnical and hydrological studies and condemnation drilling for the heap leach pad site, waste dump and plant site. An updated NI 43-101 compliant resource was completed in early May 2019.

Since acquiring the Empire project, Phoenix has increased the claim area from 818 acres to 5,717 acres, mainly to the northwest and west, and in so doing has increased the potential for additional oxide and sulphide copper resources, as well as the potential for stand-alone gold and silver resources, along a strike length of approximately 5.4 km towards the other brownfield mines of the Horseshoe, White Knob and Blue Bird Mines now within the property boundary. In particular, a new discovery at Red Star, 330 metres north west of the Empire Mine proposed open pit, has revealed sulphide ore and from three shallow exploration drill holes a NI 43-101 compliant maiden resource of 1.6 million silver equivalent ounces was reported.

At Empire, it is estimated that less than 1% of the potential ore system has been explored to date and, accordingly, there is significant opportunity to increase the resource through phased exploration.

More details on the Company, its assets and its objectives can be found on PXC's website at www.phoenixcopperlimited.com.

CHAIRMAN'S STATEMENT

Dear Shareholders

"May you live in interesting times," was first used, in English at any rate, by Sir Austen Chamberlain, in 1936, and later cited as an "ancient Chinese curse." As I write, copper trades 35% below its 2018 high at $2.14 a pound, a level at which approximately 17% of world copper production is losing money on a true, sustaining capital expenditure basis, according to analysts at Jefferies. However, the fundamentals of precious metals as a store of value while governments are printing money have begun to reassert themselves, and we are very fortunate to have the Red Star silver project, which shows robust economics at the current silver price, as a route to early production and revenue generation. We are commencing our 2020 drilling programme later this month, and as we will only have three crew members on a drill pad at any given time, Covid-19 should have less impact on us than on many other companies. Barring any delays at the assay laboratory, we hope to produce an updated resource at Red Star in Q3 2020, keeping us on track for commencement of production in late 2021. Meanwhile, we expect the electric vehicle and cleaner air revolution to resume once a degree of calm returns, creating shortages of both copper and cobalt.

Although fluctuations in metals prices have made planning decisions, and the funding of them, more difficult, we have also been very fortunate to have amongst our shareholders some long-term investors who have continued to support us. We have continued to work on the development of the open-pit copper mine, in anticipation of higher copper prices, although we can see earlier cash flow potential from the Red Star project, to the north of the Empire open pit. The Red Star discovery is in primary high-grade silver/lead sulphide mineralisation. After only three holes drilled, we were able to generate a maiden NI 43-101 compliant resource of some 103,500 tonnes, containing over half a million ounces of silver. Our current view is that Red Star may develop into a high-grade underground silver-lead mine with a modest level of capital expenditure, and we are going full steam ahead with the drilling programme to prove up enough metal in order to make a production decision later in the year.

Although we are a small company, we have both "safe haven" and economically sensitive metals in our various claims. During 2019 we expanded our territory from 1,837 acres to 5,717 acres (7.43 sq km to 23.14 sq km), to include the old polymetallic workings at White Knob, Bluebird and Horseshoe, along with the historic prospects at Windy Devil and the 9.8 sq km Navarre Creek gold property to the north west. This expansion gives us 5.4 km of mineralised strike length at Empire, and a further 6.1 km at Navarre Creek. Mindful of keeping dilution by the issue of more shares at depressed prices to a minimum, we are working on sharing the costs of exploring these properties with potential joint venture partners.

Our properties are located in central Idaho. Custer County, Idaho, home to our Empire Mine, has a recorded population of 0.9 people per square mile, making it one of the least populated Counties in the State. Although the Company will be taking every precaution available when it comes to our employees' and contractors' health and safety, we believe that our location will help to minimise any possible business interruptions arising from the Coronavirus pandemic. I am lucky to have a great team of fellow directors and operatives in the UK and Idaho, and we were pleased Ryan McDermott agreed to step up to the role of Chief Executive Officer. Idaho born and raised, but with a wealth of international experience, he could not have a better resume for the job. Dennis Thomas, who brought the project to Phoenix, is now a Non-Executive Director and VP Investor Relations. We thank him for his contribution, and his energy and enthusiasm endure in his new role.

We are also pleased to announce the appointment of Idaho-based Ms Lenie Wilkie as head of ESG compliance. We take our environmental and social responsibilities very seriously and welcome her in this new role.

Although our sterling market capitalisation is currently not as we would wish I am encouraged that our balance sheet is denominated in US dollars, as are our principal assets. We have ensured that money raised from shareholders has been spent developing our assets. The Empire Mine now has a carrying value of approximately $12 million, and much of this value is underpinned by a shareholder loan of almost $9 million from Phoenix to Konnex Resources, our 80% owned operating subsidiary in Idaho. This loan earns interest at 6% per annum and will be repaid from cashflow generated from commercial production at Empire. It is our current intention that this loan, when repaid, together with profits distributed to us by Konnex, will allow us to return money to shareholders by way of dividends.

We thank you all for your continued support, and look forward to updating you on the Red Star development programme and other matters in what should still be an exciting year for us.

Marcus Edwards-Jones

Executive Chairman

9 April 2020

CHIEF EXECUTIVE OFFICER'S REPORT

Principal activities and review of the business

In 2017 the Phoenix team set out to explore and develop an open-pit oxide-copper deposit at our Empire Mine property in Idaho, USA. What has become plainly clear in the past two years of extensive mapping, sampling and drilling is that the Empire group of projects, including Red Star, Horseshoe, and Navarre Creek, holds not only an oxide-copper resource, but it also offers a true suite of polymetallics including gold, silver, lead, zinc and sulphide copper. The variety and grade of mineralization encountered thus far on the many claim blocks that make up the Empire property is providing Phoenix with the unique opportunity to exploit metals other than copper during a period where the fluctuating copper market is proving challenging for the industry as a whole. While the 2019 copper market experienced some unforeseen lows, the precious metals markets have experienced some shining upswings. The Company is in a good position, particularly with its Red Star high-grade silver and lead resource and its cobalt holdings, to expand beyond the oxide-copper resource whilst copper prices rebound. 

The Coronavirus pandemic has had a significant and immediate impact on the operations and funding of many businesses both in the USA and globally. However, mining was named an essential service under Idaho Governor Brad Little's recent stay-at-home order, so Phoenix employees are moving the Empire and Red Star Projects forward without delay. To protect the health and safety of its employees and the local community, the Company, in concert with community leaders, has developed an innovative plan that minimizes employee-to-employee contact and virtually eliminates contact with the community at large while allowing the Company to proceed with the Red Star drilling programme. The Company has closely examined the supply chain and is confident that all necessary equipment and supplies will be readily available for the drilling programme.

It is not possible to predict with certainty the potential future impact on global copper, silver and other relevant mineral prices. Markets will certainly fluctuate, as we have witnessed in 2019, and particularly at this time of the Coronavirus pandemic, but we believe that global initiatives in electrification and manufacturing will provide a demand well into the future. It is also reassuring to note that the Company is operating in a geopolitically stable jurisdiction and that we have both early production potential and significant exploration upside.

Red Star - High-grade Silver and Lead

Red Star is a high-angle silver-lead vein system located 330 metres north-northwest of the proposed Empire oxide pit. Red Star was identified from a 20-metre wide surface outcrop across a skarn structure. Surface mineralisation is a mix of spectacularly covered oxides and sulphides, with strong chrysocolla and bornite showings, exposed in a heavily timbered canyon. Three reverse circulation ("RC") drill holes were drilled on the target and assay results reported the presence of high-grade lead and silver sulphides including intercepts of 21% lead and 1,111 g/t silver. In early May 2019 the Company announced a small maiden "Inferred" sulphide resource of 103,500 tonnes, containing 580,324 ounces of silver, 3,985 tonnes of lead, 952 tonnes of zinc, 342 tonnes of copper, and 2,828 ounces of gold.

Following the estimation of the inferred resource, a second drilling program was approved by the Company targeting the Red Star vein system along strike and at depth. This represents an exciting exploration prospect for the Company. Due to the depth of overburden and general lack of outcrop in the area, drill roads were constructed in late 2019 designed to "cut" below the overburden and into the sub-crop along the vein system's strike. Channel samples were collected across the mineralized sub-crop where the vein system "daylighted" in the road cuts. The results of the channel sample assays were on par with the channel sample results taken from the Red Star discovery outcrop in 2018. The 2020 drill programme will utilize the channel samples for drill hole targeting. 

Empire Mine - Open-Pit Oxide-Copper

In May 2019 we announced a new NI 43-101 compliant open pit copper-oxide "Measured and Indicated" resource of 15.2 million tonnes at 0.49% copper. This resource incorporated the 2017 and 2018 drilling results and included gold, silver and zinc occurring with the copper at the same cut-off grade. The table below shows the distribution of metals and grades within the oxide-copper shell at a cut-off grade of 0.184% copper. The Empire copper-oxide deposit is envisioned as a heap-leachable, solvent extraction/electrowinning (SX/EW) process. 

We are continuing down the feasibility study and permitting pathways with the copper-oxide resource, most recently completing two years of environmental studies directly applicable to the permitting and mine planning of the oxide-copper open-pit. Although our resources are being focused in the direction of Red Star, we are continuing to move the copper-oxide project forward in order to better position ourselves as the copper market improves.

The Company is also currently examining alternative extraction methods that may allow for the recovery of gold, silver, and zinc along with copper.

Empire Mine Expansion - Horseshoe and White Knob, Windy Devil, and Navarre Creek

We have made a point of focusing our efforts on our flagship Empire Mine projects. However, we have increased our land position from time-to-time as our geologists recognize prospective and strategic opportunities. At the time of the Company's IPO in mid-2017, our Empire Mine property consisted of 818 acres. Since then we have increased the core Empire claim block to 3,297 acres by expanding north to the former Horseshoe and White Knob Mines and onto Windy Devil. The expansion covers approximately 30 historic adits, shafts and prospects, which exhibit geology and mineralogy similar to Red Star.

In February 2019 we staked another 2,420 acres in Navarre Creek, north and west of the core Empire claim block. Navarre Creek is a 6 km long zone of felsic volcanic and intrusive rocks with alteration and mineralization characteristics typical of epithermal, hot spring-type gold deposits.

Empire Mine - Polymetallic Sulphide Potential

The Red Star vein system appears to be a distal, near-surface expression of a deeper, copper-rich sulphide vein system that lies below the oxide-copper open pit and was mined extensively underground until the 1940s. Two deep diamond drill holes drilled in late 2017 confirmed the presence of higher-grade sulphide mineralisation in the skarn structures at depth. Both of the core holes intersected mineralised skarn over much of their length and the analytical data from both drill holes intersected numerous significant intervals of copper, gold, silver, zinc, lead, and tungsten throughout their depths. The tungsten values were particularly interesting as they positively reinforced the Company's consulting geologist's predictions of the Empire system being the uppermost horizon of a larger molybdenum-tungsten porphyry. In 2018 five drill holes intercepted copper sulphide mineralisation. One hole returned 5.53% copper, 7.67 g/t gold, and 120 g/t silver, and was further north of any historical underground mining, whilst another returned 5.19% copper adjacent to historical underground workings. The gold and silver grades generally are major considerations, ranging to 7.93 g/t gold and 256 g/t silver.

Borah Resources - Idaho Cobalt Belt

Borah Resources is a 100% Idaho registered subsidiary of the Company. Comprised of two strategically located properties, Redcastle and Bighorn, the Company believes that they are an important asset in a time of global electrification and the rarity of cobalt resources from first world jurisdictions. The properties are strategically located in the USA's only prospective cobalt region, the Idaho Cobalt Belt, approximately 100 miles north of the Empire Mine. In 2018 we announced the results of our 2017 reconnaissance programme of 46 surface grab samples which gave cobalt values ranging from 2 ppm to 0.31% cobalt.

Environmental, Social and Governance

Our successes so far are related directly to the local community support we receive from the citizens of Custer County, Idaho. We are fortunate to work in an area rooted so deeply in mining and with a population understanding of the economic benefits of the industry. Our recent roll-out of the Company's Environmental, Social and Governance (ESG) programme was based largely on our desire to include the community in our team. We initiated the programme by appointing Ms Lenie Wilkie to the position of ESG Programme Coordinator.

Ms Wilkie is a well-respected local businesswoman and community leader and has been playing an integral role as liaison between the community and Phoenix, assisting in the hiring of local labour, reviewing and selecting the beneficiaries of Company donations, and managing local supply acquisitions and inventory. She was integral in the placing of Company donations for the Mackay, Idaho FFA Fish Lab and the Lost River Robotics Youth Team. Both organizations provide local youth the opportunity to compete in state and national level scientific-based competitions. Her deep roots in the community, her Native American background, and her success driven work ethic provide her with a unique perspective on the importance of balancing sustainable job growth with an emphasis on both environmentally and socially responsible business practices.

Outlook

My outlook on the Company is more positive now than in the three years since joining the Phoenix team. In that time, we have expanded our resources and exploration potential from a single oxide-copper resource into a high-grade silver lead vein system, a polymetallic sulphide vein system, a very prospective volcanic-hosted gold system, and two strategically located cobalt properties, all within the same geopolitically stable, pro-mining jurisdiction.

In addition to the expansion of the oxide-copper resource into the polymetallic system we currently recognise, I am particularly encouraged by the results of two years of extensive baseline environmental studies that we recently released that included the research of flora, wildlife, hydrological, and archaeological studies, and indicate that we have no critical habitat for threatened or endangered plant and wildlife species, including sage grouse. The studies also concluded that no legacy impacts to surface or groundwater occurred as a result of any historical mining operations on the Empire Mine properties. Archaeological studies were also unable to identify any significant cultural artefacts on the Empire property. These findings are important as they clear the path to the development of an operating plan for Red Star, and the permitting of the Empire oxide-copper deposit, and the deeper sulphide system. That is three metal-rich systems with favourable environmental conditions.

Despite challenging metals markets, we came out of 2019 well positioned for further expansion and with more confidence in our projects than ever before. We have an oxide-copper resource within a stone's throw of a high-grade silver lead vein system, all on patented mining claims in a first world jurisdiction, and all with favourable environmental baseline results. The positives have not blinded us to the work we have ahead, however, but it has provided us confidence that we are on the cusp of developing a mineralized system of which we believe we have barely scratched the surface. 

Our Red Star discovery provides us with a seriously attractive and low cost near surface sulphide exploration target and the expanded claim holdings protect our future from competition, providing the Company with potential base and precious metals resources and perhaps the discovery of a world class polymetallic deposit.

In conclusion I would like to thank the dedicated and highly motivated team of professional staff, consultants and advisers, community liaisons, shareholders, and directors who will allow us to continue to adapt our work programmes to market conditions in order to maximise the medium and long-term benefits for the Company. The Company understands the importance of putting shareholder money to work in the field, where it counts. I look forward to next year's annual report, wherein I can report on what I still expect to be a very positive 2020 for the Company, despite current market conditions.

Key performance indicators ('KPIs')

To date the Group has been focused on the delivery of the project evaluation work programmes to assess the available mineral resources and the extraction methods to apply, each within the available financial budgets. This work will continue until the relevant feasibility studies are completed, and construction commences.

At that stage the Group will consider and implement appropriate operational performance measures and related KPIs as the objective of recommencing commercial production at the Empire Mine nears fruition.

On behalf of the board

Ryan McDermott

Chief Executive Officer

9 April 2020

Significant non-cash transactions:

During the year the Directors capitalised $180,960 of fees into shares (2018: $84,138).

In October 2018 the Company was admitted to trading on the OTCQX Market in New York. 

Basic earnings per share amounts are calculated by dividing net loss for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Where the Group has incurred a loss in a year or period the diluted earnings per share is the same as the basic earnings per share as the loss has an anti-dilutive effect.

The Company has potentially issuable shares of 10,265,195 (2018: 3,121,206) all of which relate to the potential dilution in respect of warrants and share options issued by the Company. See also note 14.

Mining property assets relate to the past producing Empire Mine copper - gold - silver - zinc project in Idaho, USA. The Empire Mine has not yet recommenced production and no depreciation has been charged in the statement of comprehensive income. There has been no impairment charged in any period due to the early stage in the Group's project to reactivate the mine.

The principal investment is based in the USA.

Exploration and evaluation expenditure relates to the Bighorn and Redcastle properties on the Idaho Cobalt Belt in Idaho, USA. The properties are owned by Borah Resources Inc, a wholly owned subsidiary of the parent entity, registered and domiciled in Idaho.

There were no receivables that were past due or considered to be impaired. There is no significant difference between the fair value of the other receivables and the values stated above.

All liabilities are payable on demand or have payment terms of less than 90 days. The Company is not exposed to any significant currency risk in respect of its payables.

The Company has issued loan notes with a redemption value of $800,000 in units of $25,000 (£20,000) each, including $50,000 issued to Andre Cohen, a director of the Company. The coupon is 12% per annum. The final redemption date is 30 September 2021, repayable earlier at the Company's option from new mezzanine or construction finance for the Empire Mine if secured.

Since the year end the Company has issued further loan notes with a redemption value of $309,500.

The provision of $100,000 for decommissioning the Empire Mine is based on the directors' estimate after taking into account appropriate professional advice.

The other provision of $657,702 arises from a business combination in 2017 and comprises potential royalties payable in respect of future production at the Empire Mine. This liability will only be payable if the Empire Mine is successfully restored to production and will be deducted from the royalties payable. The amount of the provision will be reassessed as exploration work continues and also on commencement of commercial production.

The Company does not have an authorised capital and is authorised to issue an unlimited number of no par value shares of a single class.

In the year the Company issued 11,705,882 ordinary shares at £0.17 per share to raise $2.54 million. All issued shares were fully paid.

Since the year end the Company has issued a further 7,900,000 shares at £0.15 per share. The Company currently has 52,684,881 ordinary shares in issue.

The ordinary shares in the Company have no par value. All ordinary shares have equal voting rights in respect of shareholder meetings. All ordinary shares have equal rights to dividends and the assets of the Company.

The Company has issued warrants to subscribe for additional shares to existing shareholders. Each warrant provides the right to the holder to convert one warrant into one ordinary share of no-par value at exercise prices ranging from £0.20 to £0.60. At 31 December 2019 the number of warrants in issue was 7,115,195 (2018: 1,896,206).

Since the year end a further 300,000 warrants have been issued with an exercise price of £0.16.

The Company has issued options to subscribe for additional shares to the directors and senior management of the Group. Each option provides the right to the holder to subscribe for one ordinary share of no par-value, subject to the vesting conditions, at exercise prices of £0.45 and £0.17. At 31 December 2019 the number of options in issue was 3,150,000 (2018: 1,225,000).

The Company has issued 7,115,195 (2018: 1,896,206) warrants to shareholders to subscribe for additional share capital of the Company. Each warrant entitles the holder to subscribe for one ordinary equity share in the Company. The right to convert each warrant is unconditional. 

Additionally, the Company has issued 3,150,000 (2018: 1,225,000) share options to directors and senior employees of the Company. Each share option entitles the holder to subscribe for one ordinary equity share in the Company once the vesting conditions have been satisfied. The right to subscribe for ordinary shares in the Company is subject to a minimum 12 month holding period for 50% of the share options and a 24 month holding period for the balance of 50% of the share options.

In the periods presented the Company has settled remuneration liabilities by the issue of equity in lieu of cash payments for services but has not operated any equity-settled share based incentivisation schemes for employees.

Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) as determined through use of the Black-Scholes technique, at the date of issue. The warrants were issued as exercisable from the date they were issued and there are no further vesting conditions applicable.

The total share-based payment charge for all warrants and options issued in the year was $268,916 (2018: $173,832). The share-based payment charge was calculated using the Black-Scholes model. All warrants issued vest immediately on issue. Share options vest over a 24-month period from the date of issue.

Volatility for the calculation of the share-based payment charge in respect of both the warrants and the share-options issued was determined by reference to movements in the Company's quoted share price on AIM.

The inputs into the Black-Scholes model for the warrants and share options issued and warrants modified in 2019 were as follows:

The warrants were issued in four tranches. The share prices at the date of grant were between £0.13 to £0.19. The weighted average warrant exercise prices at the date of grant were from £0.20 to £0.60. Additionally, the exercise dates for 327,094 existing warrants with an exercise price of £0.60 were extended to 31 December 2021. The extension has been valued as a new instrument as at 20 December 2019 and the fair-values and charge included above.

The expected volatility ranged from 49.89% to 51.52%. The fair-values of warrants issued in the year were from £0.03 to £0.04. The expected life of the outstanding warrants and options ranged from 1.40 to 2.98 years.

The share-based payment charge has been classified as an administrative expense, and simultaneously credited to retained deficit.

Since the year end the Company has raised a further $1.85 million, $1.54 million through the issue of 7,900,000 shares at £0.15, and $0.31 million through the issue of 12% unsecured loan notes.