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.”
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.