Source - RNS
RNS Number : 1755P
Phoenix Global Mining Ltd
06 February 2019
 

Phoenix Global Mining Ltd

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

 

6 February 2019

Phoenix Global Mining Ltd

('Phoenix' or the 'Company')

 

Placing and Subscription to raise £950,000

 

 

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 £950,000 (before expenses) by way of a placing and subscription of 5,588,235 new ordinary shares of nil par value each ("New Shares") at a price of 17 pence (the "Fundraising", "Issue Price"). The Company will also issue 1 Warrant for every 4 New Shares ("Warrants") subscribed for, exercisable at 28 pence per share and valid until 31 January 2022.  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 £35,000 at the Issue Price, via the issue of 205,882 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. The Fundraising is in addition to the funding announced on 24 December 2018. Accordingly, the total gross amount raised across the two fundraisings will be £1.3 million.

 

The proceeds will be used to further advance the Company's flagship asset, the historically producing Empire Mine in Idaho, United States. The Company intends to substantially increase its acreage surrounding the Empire Mine to accommodate the expanding resource. The new resource statement is underway following the 2018 drill programme and is now scheduled for completion at the end of Q1 2019.

 

Dennis Thomas, Chief Executive Officer, said,

 

"Following our press release of 14 January 2019, we are pleased to announce the closing of this financing. We look forward to reporting the new resource calculation, being completed by our Bankable Feasibility consultant, RPM Global of Denver Colorado. We also plan to significantly increase the area of the property to the north and west of the current 1,837 acres to include other historic mines and known mineral occurrences. We expect to receive the last of the 2018 drill programme assay results imminently. Environmental base line studies, geotechnical and hydrological studies, mine design and planning, metallurgical testwork, process plant design, infrastructure design, environmental impact studies and economic analysis will all follow over the remainder of this year. At the same time, we will continue to explore the expanded Empire property for base metal oxides and sulphides, as well as gold and silver and perhaps tungsten which occurred in the lower levels of the old Empire mine."

 

Details of the Fundraising

Application has been made for 5,588,235 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 12 February 2019. 

Total Voting Rights

Following the issue of the New Shares, the issued share capital of the Company will consist of 38,667,234 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 38,667,234.

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.  

 

In 2018 the Company completed 8,604 metres of drilling at Empire. The analytical and geological data from this 93-hole drilling program and 106 channel surface sampling programme is currently being evaluated and modelled in preparation for an updated resource calculation as part of the ongoing Bankable Feasibility Study for the initial open pit mine.  Phoenix staff and consultants are systematically assessing and evaluating the recent data and incorporating this data into the existing database which includes all of the information used in the November 2017 resource estimate and in the April 2018 Preliminary Economic Assessment.

 

As reported throughout late 2018, mineralized drill hole intercepts were prevalent in multiple directions outside of the previously modelled open pit mine, particularly to the north in the newly discovered Red Star area.  The 2018 drilling programme obtained numerous high grade interceptions, including grades of 12.05% copper, 20% lead, 5.83% zinc, 2.52g/t gold and 580 g/t silver, all of which will be included in the updated resource estimate. Known mineralisation now covers a strike length of 3.5 kilometres within the Company's claim block. The April 2018 pit design covered 1 kilometre of this. The Company continues to believe that the Empire Mine Project, including the historically mined high grade underground orebody, represents a major mineralised system and will continue to explore the underground sulphide mineralisation potential of the Empire Mine in 2019, whilst looking to consolidate land holdings adjacent to the mine.

 

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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