Phoenix Copper raises cash for Empire starter project

The company raised £12.30-million in aggregate before costs through the placing of 35.13-million shares at 35p a share. A further £4.15-million was raised through a direct subscription with the firm.

“The funds will be used for ongoing mine optimisation and preconstruction engineering, ongoing process engineering and metallurgical test work, and the preparation of the plan of operations and related reclamation plan,” said chairperson Marcus Edwards-Jones.

The company also intends to pursue ongoing exploration at the Red Star high-grade silver/lead deposit just north of the Empire openpit area, and the recently staked Navarre Creek gold project, which geologically has similarities to the volcanic hosted gold deposits on the Carlin trend in Nevada.

The ongoing exploration will include magnetic surveys and geochemical work on both properties, as well as drilling programmes on both properties targeted to start in the third quarter of 2021, with a view to adding to the maiden inferred resource at Red Star, and generating an initial resource at Navarre Creek.

In addition, the company is planning to start an initial drilling programme into the deeper high-grade underground sulphide deposit, which was historically mined at head grades of between 6% and 8% copper from 1902 to 1942.

The balance of the fundraising will be used to repay the recently announced £2-million loan facility and will also provide the group with additional working capital.