Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF) has said it is finalising discussions to place up to US$80mln in corporate copper bonds.
The AIM-quoted base and precious metals company said the payment on the bonds, which was first announced last June, has been amended to the larger of between the copper price coupon or an interest rate coupon.
The copper price coupon will be a minimum of 8.5% per annum at US$3.60 per pound (/lb) or the lower average monthly closing copper price during the coupon period, the company said in a statement.
Any US$0.10/lb increase in copper prices will increase the coupon by 0.15%, to a maximum of 20% per annum at US$11.27/lb.
The interest coupon, on the other hand, will be the average monthly closing Federal discount rate, plus 5%, to a minimum of 8.5% and a maximum of 20% per annum.
Additionally, Phoenix said it has entered into a short-term US$2mln loan facility with Riverfort Global to “strengthen US dollar operational working capital.”
The facility is unsecured and has an initial three-month term paying a fixed 4%.
Phoenix has the option to extend the facility for a further nine months at 1% interest per month, with the lender entitled to convert any principal or outstanding amount into shares at a 10% discount to the lowest value weighted average price 10 days prior to conversion.
Riverfort will receive 2mln warrants over ordinary shares, exercisable at 42p, and valid for three years.
“We are also looking forward to the upcoming 2023 exploration season, a primary focus of which will be a 60-hole drilling program at our Navarre Creek gold zone, which forms part of our expanded area of interest beyond the original Empire Mine claim blocks, as well as further drilling within those claim blocks themselves,” said chief executive Ryan McDermott in the statement.
Phoenix Copper said its full-year results are expected to be published towards the end of April, while it has also obtained an overarching 'A' rating on Digbee ESG.