Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF), the AIM-quoted base and precious metals company focused on the US, is nearing the completion of its proposed corporate copper bond financing.
Its fundraiser is aimed at underwriting the construction of the Empire open-pit mine in Idaho, which is host to copper, gold, silver and zinc.
While it provided few details on the deals, the company confirmed that discussions with several interested bond investors are in advanced stages. It has said in the past it is looking for around US$80 million of new investment.
In its update, Phoenix said the necessary documentation for the bond creation has been finalised and recorded with the Custer County Recorder in Challis, Idaho. They have also been deposited with the settlement agent, though their issuance is contingent on the successful conclusion of investor discussions.
In a related development, Phoenix Copper also highlighted its ongoing negotiations to transform its existing US$2 million short-term loan facility, first announced last March, into a larger one. This step is intended to provide the company with additional working capital for purposes other than the Empire mine's construction.
Phoenix is an emerging producer and exploration company in the US, primarily targeting copper, gold and silver production. The company's main focus is the Empire Mine property near Mackay, Idaho, in the Alder Creek mining district.
This property, which Phoenix owns 80%, historically produced various metals, including copper, gold, silver, zinc and tungsten, from an underground mine.
Since 2017, Phoenix has conducted extensive drilling programs, leading to a NI 43-101 completed preliminary economic assessment (PEA) for an open pit heap leach solvent extraction and electrowinning (SX-EW) mine, updated in October 2020.
This assessment revealed significant measured and indicated resources, including copper, gold, silver and zinc.
The Alder Creek mining district also includes historic mines like Horseshoe, White Knob and Blue Bird, and a new discovery at Red Star, 330 meters northwest of the proposed Empire Mine open pit.
Additionally, Phoenix Copper owns two cobalt properties in the Idaho Cobalt Belt and has entered an earn-in agreement with Electra Battery Materials, Toronto, for one of these properties.