Extension of Warrants

Phoenix Copper Limited / Ticker: PXC / Sector: Mining

20 December 2019

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

Extension of Warrants

Phoenix Copper Limited (AIM: PXC; OTCQX: PGMLF), the AIM quoted North American focused base and precious metals exploration and development company, today announces that it has extended the expiry date on a class of warrants by an additional two years.

The expiry date on 327,094 warrants (as consolidated in August 2018), with an exercise price of 60 pence per share (the "Warrants"), has been extended from 31 December 2019 to 31 December 2021(the "Warrant Extension"). Existing Warrant certificates will remain valid and the new expiry date will be reflected on the Company's Register of Warrant Holders. The exercise price will remain unchanged. Of these Warrants, a total of 42,306 are held by Dennis Thomas (CEO), Roger Turner (CTO and NED) and Richard Wilkins (CFO).

Related Party Transaction

Certain of the Warrants are held by Directors of the Company and accordingly, the extension of the exercise period of the Warrants constitutes a related party transaction under Rule 13 of the AIM Rules. Accordingly, Marcus Edwards-Jones, Ryan McDermott, Andre Cohen and Jason Riley, as the independent directors, consider, having consulted with the Company's nominated adviser, that the terms of the Warrant Extension are fair and reasonable insofar as shareholders of the Company are concerned. 

Dennis Thomas, Chief Executive Officer, commented: "I am pleased to be able to inform the relevant Warrant holders that their Warrants have been extended by two years. We value their support and this additional timeline is intended to allow the Company to proceed into production at our Empire project in Idaho, USA prior to the extended expiry date."

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 is fast-tracking the historically-producing Empire Mine in Idaho, USA, back into production, and exploring for cobalt 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.

However, Phoenix has increased the claim area from 818 acres at the time of its acquisition 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 2,500 metres 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.