Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF, FRA:5HR) said it plans to raise around £2.3 million through a placing and subscription at a steep discount, while warning that further funding will still be needed before the end of September.
The AIM-listed Idaho copper developer is proposing to issue around 460 million new shares at 0.5p each, a 54.5% discount to the 1.1p closing mid-market price on 2 July. It also plans a separate retail offer to raise around £0.5 million at the same price.
Net proceeds from the placing and subscription are expected to be about £2.0 million and will go towards repaying short-term debt, process design engineering, UK and US operating costs, current debt service and working capital.
Phoenix said it intends to repay the remaining principal due to Indigo Capital LLP, amounting to about £1.176 million, while a final £188,000 interest payment is expected to be settled through the issue of 40 million new shares and warrants.
The company said the fundraising would give it “financial flexibility to sustain the Company for the short term”, but added that more capital will be needed to progress its activities “in any event before the end of September 2026”.
Assuming full take-up of the retail offer and completion of the subscription, the new shares would represent about 194% of Phoenix’s existing ordinary shares and roughly 66% of the enlarged share capital.
In London, Phoenix Copper shares fell 57% to 0.47p in Monday's trade.
