Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF) said it wants to raise £2.2 million gross through a combined placing, subscription and retail offer of shares at 11.5p each to fund equipment for its proposed Empire mine in Idaho.
Talks are underway with its current lender to roll an existing short-term facility into a new longer-term loan and with several investors over copper bond financing for construction at Empire.
Repayment of the short-term facility is due on 23 March 2024.
Phoenix Copper added that a pre-feasibility study (PFS) for its Empire open pit mine in Idaho is nearing completion and should be ready for delivery at around the end of this quarter.
Ahead of that, Phoenix said it had been offered certain pieces of equipment in good operating condition at a significant discount to the price when new.
Buying this kit should give the company a significant capex reduction and have a material impact on the PFS economic analysis, as well as reducing the time required to purchase certain long lead-time items, said the statement.
Four board members, other senior management plus certain investors have announced they will participate in the share subscription.