Placing and Subscription to raise £700,000

Phoenix Global Mining Ltd

Ticker LSE AIM: PGM, OTCQX: PGMLF / Sector: Mining

23 May 2019

Phoenix Global Mining Ltd

('Phoenix' or the 'Company')

Placing and Subscription to raise £700,000

· Placing at a premium of 13.3 % (to closing mid-price as at 22 May 2019) with a 1:4 warrant at 28p

· Placing to accelerate the Bankable Feasibility Study on an open pit heap leach SX-EW operation to produce copper and zinc

· Project finance discussions underway

Phoenix Global Mining Ltd (AIM: PGM, OTCQX: PGMLF), the North American-focused base and precious metals exploration and development company, is pleased to announce that it has raised £700,000 (before expenses) by way of a placing and subscription of 4,117,647 new ordinary shares of nil par value each ("New Shares") at a price of 17 pence (the "Fundraising", "Issue Price"). The Company will also issue 1 Warrant for every 4 New Shares ("Warrants") subscribed for, exercisable at 28 pence per share and valid until 31 January 2022. The Warrants will not be listed. 

The proceeds will be used to further advance the Company's flagship asset, the Empire Mine in Idaho, United States of America. The proceeds will be applied to accelerate the Bankable Feasibility Study ("BFS") on an open pit heap leach solvent extraction electrowinning ("SX-EW") project, to produce copper and zinc, following the recently published updated NI 43-101 compliant resource (announcement dated 7 May 2019) which confirmed sufficient Measured and Indicated resources on which a BFS can be based. The Company expects the BFS to be completed in mid-2020, and production to commence in 2021.

During the BFS, the Company will be carrying out a number of work programmes, including detailed mine planning and scheduling, additional metallurgical testwork, heap leach pads, ponds and process plant design, infrastructure design, environmental impact statement and project economic analysis.

Dennis Thomas, Chief Executive Officer, said:

"We are pleased to announce the closing of this financing and the support received from both new and existing shareholders that have followed us since listing on AIM. Following our recent updated NI 43-101 resource, we now have sufficient Measured and Indicated resources to advance the BFS, with a view to moving towards project finance, permitting, construction and production as quickly as possible.

"Given the advanced status of the project, our focus will now turn to project finance. We will seek to finance the project with a mix of debt and other instruments including offtake finance and we are progressing a number of these discussion in tandem with the BFS studies. However, we are ultimately looking to minimise the issue of equity which has been required to develop the project to this stage. Management are significant shareholders in the Company and we hope to keep further equity dilution to a minimum.

"We are entering an exciting time for the Company and look forward to keeping the market updated on our progress."

Details of the Fundraising

Application has been made for 4,117,647 New Shares, which will rank pari passu with the existing ordinary shares in the Company, to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings will commence on or around 8:00a.m. on 31 May 2019. 

Total Voting Rights

Following the issue of the New Shares, the issued share capital of the Company will consist of 42,784,881 ordinary shares. No shares will be held in treasury at the date of this announcement. The total current voting rights in the Company following the issue of the New Shares will therefore be 42,784,881.

The above total current voting rights number is the figure which may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to, their interest in the Company.

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.

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

Notes

Phoenix Global Mining Ltd (AIM: PGM, OTCQX: PGMLF) 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 flagship project is a brownfield, past producing, copper, gold, silver, zinc and tungsten underground mine, the Empire Mine near Mackay in Idaho. Phoenix acquired an 80% interest in the property in 2015. 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 June 2018 a drilling campaign consisting of 8,600 metres in 93 holes was started and completed in late 2018. This programme was designed to upgrade and increase the oxide resources, provide samples for ongoing metallurgical testwork, 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 which resulted in an increase from the PEA resources of 37% contained copper and 108% contained zinc. This resource will now be used as the basis for the Bankable Feasibility Study ("BFS") scheduled for completion in mid 2020.

At Empire, it is estimated that only 1 to 2% of the potential ore system has been explored to date and, accordingly, there is significant opportunity to increase the resource through phased exploration; the current resources relate to the oxide resource only, with the exception of the Red Star discovery "Inferred" resource, which remains open along strike and does not include the deeper, higher grade sulphides. In addition, Phoenix has increased the claim area from 813 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 resources by a total strike length of approximately 2,500 metres towards another brownfield mine, the Horseshoe Mine, which is now within the property boundary.

The Company also holds two prospective cobalt properties in Idaho, US, which are located north of the Empire Mine. These are situated close to the town of Cobalt and are close to projects being advanced by Canadian junior miners, including eCobalt Solutions and First Cobalt. Fieldwork, consisting of mapping and sampling and locating drill holes for the 2019 drilling programme, has been completed.

With a management team that has successfully constructed, commissioned and operated mines and low risk, mining-friendly jurisdictions with excellent infrastructure, Phoenix is looking to fulfil its ambitions to become a mid-tier base metal, precious metal and cobalt production company, offering exposure to high value and high demand metals with compelling demand/supply fundamentals.

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