Shares in Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF) surged 46% after the company signed a letter of intent with a US-based investor for a proposed $75 million bond placement to support its growth ambitions in the American mining sector.
The deal would see the investor subscribe for secured, floating-rate copper bonds yielding at least 8.5% and maturing between 2029 and 2033.
Subject to due diligence and final legal agreements, the funding is expected to be drawn down in three stages, starting with an initial $30 million tranche.
The agreement also includes the issue of convertible preference shares, allowing the investor to take up to 10.5% of Phoenix’s enlarged share capital. A board seat will be allocated once the first tranche is paid.
While the company stressed there is no guarantee the transaction will complete, it said discussions are progressing well and promised further updates in due course.