Business
Equity subscription for £1.185m at 15p per share
Equity subscription for £1.185m at 15p per share.
About this update from Phoenix Copper Ltd. (united Kingdom)
[{"type":"text","content":"\n \n \n RNS Number : 2628E\n Phoenix Copper Limited\n 27 February 2020\n \n \n \n Phoenix Copper Limited / Ticker: PXC / Sector: Mining\n \n 27 February 2020\n Phoenix Copper Limited (the \"Company\" or \"Phoenix\")\n Equity subscription for £1.185 million at 15p per share\n Loan note subscription for £354,000\n Drilling programme to expand silver resources at Red Star\n \n 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 that it has raised a total of US$2,000,000 (£1,539,000) (before expenses) by way of a subscription for new ordinary shares of no par value each (\"Ordinary Shares\") and the issue of unsecured loan notes (the \"Fundraising\").\n Of the US$2,000,000, US$1,540,500 (£1,185,000) has been raised by way of a subscription for 7,900,000 Ordinary Shares at a price of 15 pence per share (the \"New Shares\"), and US$459,500 (£354,000) by way of an issue of 12 per cent unsecured loan notes, repayable on 30 September 2021. The Company will also grant a total of 450,000 warrants to the loan note holders which will be exercisable at 16 pence per share and valid until 31 July 2022 (the \"Warrants\"). The Warrants will not be listed or quoted on AIM.\n The net proceeds of the Fundraising will be used to fund a drilling programme to expand the resources at the Company's Red Star silver deposit, which is adjacent to the proposed open pit copper mine at the Empire project in Idaho, USA. This programme will commence immediately. The funds will also provide the Company with additional working capital.\n Ryan McDermott, Chief Executive Officer, commented:\n \"I am pleased to report on this Fundraising, particularly the equity portion which has been placed at a 50 per cent premium to our current market price. The New Shares have been placed with existing shareholders demonstrating their ongoing support of the Company and their belief in the underlying value of our assets. Certain Directors have also participated at the premium price.\n \"These funds will enable us to systematically drill the known vein system at Red Star and build onto the existing inferred silver resource reported in 2018. The planned drilling programme will target resource expansion, initial metallurgy and process engineering ...