Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF) announced the acquisition of royalty and mining claims relating to the Empire mine in Idaho, US.
The AIM-quoted company agreed to buy 1.25% of the royalty payable to Honolulu Copper Corp, including Honolulu's mining claims and 1% of the royalty payable to Mackay LLC for a total US$1.3mln (£0.9mln) in cash.
Phoenix has paid US$550,000. The remaining US$750,000 is payable in three equal instalments at the end of 2021, 2022, and 2023.
"Our preliminary economic model for the Empire open pit mine, which is based on a US$3.60 copper price, forecasts gross revenue of US$836mln over an initial 10-year project life, said Richard Wilkins, chief financial officer of Phoenix Copper.
“The royalty now payable to Phoenix should therefore represent significant additional revenue to Phoenix over the same period and is intended to contribute additional funds to the corporate dividend policy which we plan to adopt for the benefit of our shareholders.”