Source - RNS
RNS Number : 3556L
Phoenix Global Mining Ltd
24 December 2018
 

Phoenix Global Mining Ltd

Ticker LSE AIM: PGM, OTCQX: PGMLF / Sector: Mining

 

24 December 2018

Phoenix Global Mining Ltd

('Phoenix' or the 'Company')

 

Subscription to raise £358,099

 

 

Phoenix Global Mining Ltd (AIM: PGM, OTCQX: PGMLF), the North American-focused base and precious metals exploration and development company, is pleased to announce that it has raised £358,099 (before expenses) by way of a subscription of 1,278,924 new ordinary shares of nil par value each ("New Shares") at a price of 28 pence (the "Fundraising", "Issue Price"). The Company has also issued 1 Warrant for every 4 New Shares ("Warrants") subscribed for, exercisable at 28 pence per share and valid until 31 December 2021.  The Warrants will not be listed.

 

Included within the above,  certain Directors and members of senior management of the Company have indicated their intention to subscribe for an aggregate of £114,432 at the Issue Price, via the issue of 408,685 New Shares subject to approval by the Board (the "Director Subscription"). Details of their participation and their consequent interests in the Company's issued share capital will be set out in a further announcement. Accordingly, subject to such further Director Subscription, the total gross amount raised is expected to be £358,099.

 

The proceeds will be used to further advance the Company's flagship asset, the historically producing Empire Mine in Idaho, United States, including the preparation of a new resource statement following the successful 2018 drill programme and for working capital. Phoenix is awaiting the assay results for the last of the drill holes completed in 2018.

 

As the result of the success of the 2018 drill programme at the Empire Mine, the Company intends to substantially increase its acreage surrounding the Empire Mine to accommodate the expanding resource.

 

Dennis Thomas, Chief Executive Officer, said,

 

"We are pleased to complete this fundraise and the proceeds will enable us to continue the development at the Empire Mine and the preparation of a new resource statement following a successful 2018 drill programme. We believe the fact that all directors and some members of senior management of Phoenix are participating in the fundraise demonstrates the confidence we have in the project. 

 

"Additionally, we expect to increase the acreage at the Empire Mine, to accommodate the expanding resource which, following the 2018 drill programme, is becoming ever more apparent. I look forward to updating the market in due course."

 

Details of the Fundraising

Application has been made for 1,278,924 New Shares, which will rank pari passu with the existing ordinary shares in the Company, to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings will commence on or around 8:00a.m. on 31 December 2018. 

Total Voting Rights

Following the issue of the New Shares, the issued share capital of the Company will consist of 33,078,999 ordinary shares. No shares will be held in treasury at the date of this announcement. The total current voting rights in the Company following the issue of the New Shares will therefore be 33,078,999.

The above total current voting rights number is the figure which may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in the Company.

 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

 

For further information please visit www.pgmining.com or contact:

Phoenix Global Mining Ltd

Dennis Thomas / Richard Wilkins

Tel: +44 7827 290 849 (Dennis) / 

+44 7590 216 657 (Richard)

 

SP Angel

(Nominated Adviser and Joint Broker)

 

Lindsay Mair / Caroline Rowe

Tel: +44 20 3470 0470

Brandon Hill Capital (Joint Broker)

Jonathan Evans / Oliver Stansfield

 

Tel: +44 20 3463 5000

Blytheweigh

(Financial PR)

Tim Blythe / Camilla Horsfall / Megan Ray

Tel: +44 20 7138 3204

 

Notes

Phoenix Global Mining Ltd (AIM: PGM, OTCQX: PGMLF) is a North American focused, base and precious metal explorer and developer, which is fast-tracking the historically-producing Empire Mine in Idaho, USA, back into production, and exploring for cobalt in Idaho and gold in Canada.

 

Phoenix's flagship project is a brownfield, past producing, copper, gold, silver, zinc and tungsten underground mine, the Empire Mine near Mackay in Idaho. Phoenix acquired an 80% interest in the property in 2015. Based on a total of 315 drill holes a NI 43-101 compliant oxide resource was completed in late 2017. A PEA (preliminary economic assessment) for an open pit heap leach solvent extraction and electrowinning ("SX-EW") mine was completed in April 2018 with a design capacity of 8,000 tonnes of copper cathode a year. In June 2018 a campaign consisting of RC and diamond drilling was started. This programme was designed to upgrade and increase the oxide reserves, provide samples for ongoing metallurgical testwork, geotechnical and hydrological studies and condemnation drilling for the heap leach pad site, waste dump and plant site. At the same time the consultants were appointed to complete a NI 43-101 compliant Bankable Feasibility Study ("BFS"). The lead consultant is RPM Global who are supported by Samuel Engineering, both based in Denver, Colorado. Cascade Earth Sciences of Pocatello, Idaho have been working on environmental and permitting issues since 2016 and form part of the BFS team. Golder Associates are designing the heap leach pad and ponds, and Call and Nicholas are carrying out the open pit slope stability studies.

 

At Empire, it is estimated that only 5% of the potential ore system has been explored to date and, accordingly, there is significant opportunity to increase the resource through phased exploration; the current resource relates to the oxide resource only, which remains open along strike and does not include the deeper, higher grade sulphides. In addition, Phoenix has increased the claim area from 813 acres at the time of its acquisition to 1,837 acres, mainly to the northwest, and in so doing has increased the potential for additional oxide and sulphide resources by a total strike length of approximately 1,500 metres towards another brownfield mine, the Horseshoe Mine, which is now within the property boundary.  

 

The Company also holds two prospective cobalt properties in Idaho, US, which are located north of the Empire Mine.  These are situated close to the town of Cobalt and are close to projects being advanced by Canadian junior miners, including eCobalt Solutions and First Cobalt.  Fieldwork, consisting of mapping and sampling and locating drill holes for the 2019 drilling programme, has been completed.

 

The Company has also acquired an exclusive option to explore and develop the Gordon Lake Project, in the Northwest Territories, Canada, which is a high-grade shear hosted gold project comprising of 17 known mineralised zones of which only four have been tested with 59 diamond drill holes.  The Company will proceed to examine the optimal way forward to develop the project as a low-cost underground gold producer.

 

With a management team that has successfully constructed, commissioned and operated mines and low risk, mining-friendly jurisdictions with excellent infrastructure, Phoenix is looking to fulfil its ambitions to become a mid-tier base metal, precious metal and cobalt production company, offering exposure to three high value and high demand metals with compelling demand/supply fundamentals.

 

More details on the Company, its assets and its objectives can be found on PGM's website at www.pgmining.com

 

 

 


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