Shares in Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF, FRA:5HR) fell 45% to 1.1p after the US-focused base and precious metals producer said it had suspended its executive chairman and chief financial officer with immediate effect.
In a stock exchange statement, Phoenix said chair Marcus Edwards-Jones and CFO and company secretary Richard Wilkins were subject to the suspension.
Investors were told the board had begun investigations into allegations relating to the recent conduct of Edwards-Jones and Mr Wilkins and to certain historic payments made to Lloyd Edwards-Jones S.A.S., the company’s former corporate finance adviser.
Phoenix, which owns assets in the US, said the process was being carried out with input from its professional advisers and that a further announcement would be made once they had concluded.
The company said interim financial oversight arrangements had been put in place while it progressed the appointment of an interim chief financial officer.
Phoenix said the interim arrangements would be supported by Catherine Evans, chair of the audit committee, Ryan McDermott, the chief executive, and other board members and senior management.
The company said it would outsource the company secretary role to a corporate services firm recommended by its advisers while the investigations were ongoing.
Phoenix said it had limited working capital and, without additional funding, believed its current cash balances would be sufficient to meet ongoing obligations only until early Q2 2026.
It said it was considering a range of short-term and longer-term funding options and would update shareholders on its fundraising strategy in due course.
Phoenix said discussions with Riverfort Global Opportunities PCC Limited on the terms of its short-term loan facility were continuing and that shareholders would be updated once those talks had concluded.