Phoenix Copper has raised £16.45m, through a placing and a subscription, to fund the development of the Empire mine in Idaho, US.

The base and precious metals exploration and development company has raised £12.30m in aggregate before costs via the placing of 35.13 million shares at 35p per share, as well as £4.15m through a direct subscription with the firm.

Phoenix Copper is planning to use the net proceeds of the fundraising mainly for the development of the Empire Mine open-pit ‘starter’ project to produce copper, zinc, gold and silver.

The scope of work includes mine optimisation, pre-construction and process engineering, metallurgical test work, and the preparation of the Plan of Operations among others. The company acquired an 80% stake in Empire Mine in 2017.

Phoenix Copper chairman Marcus Edwards-Jones said: “Following the results of the updated economic model for the Empire Mine’s open-pit ‘starter’ project last month, the proceeds of the fundraising will be used to continue the development of the open-pit project whilst the company negotiates the terms of the pre-production finance.

“Specifically the funds will be used for ongoing mine optimisation and pre-construction engineering, ongoing process engineering and metallurgical test work, and the preparation of the Plan of Operations and related reclamation plan.”

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By GlobalData

Phoenix Copper is also planning to use the proceeds to fund the ongoing exploration of the Red Star high-grade silver-lead deposit; the Navarre Creek gold project; and initial drilling into the historically mined underground sulphide deposit at the Empire Mine.

The remainder of the fundraising will be used by the company to repay the £2m loan facility, as well as provide additional working capital.