Berlin, 5 June 2024 – NIU Invest SE, a European investment company, is announcing its initial investment of US$5 million in the fully subscribed US$80 million corporate copper bond issue of Phoenix Copper Limited (AIM: PXC, OTCQX ADR: PXCLY), a USA-focused base and precious metals company. This strategic partnership aims to advance the development of Phoenix’s Empire open pit mine in Idaho, USA, significantly enhancing the company’s production capabilities for copper, gold, and silver.
After Phoenix’s recent announcement on 15 May 2024 and the successful resolutions passed at their Annual General Meeting on 29 May 2024, Phoenix has received the first tranche of US$5 million (the “Initial Drawdown”) from NIU Invest. This initial investment is part of Phoenix’s US$80 million fully subscribed corporate copper bond issue (the “Bonds”), which will finance the construction of Phoenix’s Empire open pit mine in Idaho, USA. This mine will produce copper, gold, and silver, and provide general working capital.
In tandem with the initial Investment, NIU Invest will receive 33,884,031 new ordinary shares of no par value in Phoenix Copper as an arrangement fee. Additionally, NIU Invest will obtain warrants to subscribe, at no cost, for a further 22,589,354 new ordinary shares as a drawdown fee. Following the issuance of these new ordinary shares, NIU Invest will hold an 18.36% interest in Phoenix Copper, with corresponding voting rights.
Cevdet Caner, the principal shareholder of NIU Invest, commented:
“Phoenix Copper possesses solid fundamentals and boasts experienced leadership. NIU Invest holds great confidence in the team’s capacity to deliver. This investment aligns seamlessly with our strategy of investing in critical materials crucial for propelling the transition to cleaner energy, the electrification of transport, and the digital revolution.”
Marcus Edwards-Jones, Chairman of Phoenix Copper, added:
“We are thrilled to have secured a strategic investor who shares our vision of establishing a new clean metals producer in the western United States. This innovative form of financing, linked to the copper price, provides us with a clear path to production.”
Phoenix Copper Limited is an emerging producer and exploration company specializing in base and precious metals, primarily focusing on copper, gold, and silver extraction from an open-pit mining operation within the United States. Phoenix’s flagship asset is the Empire Mine, located in the historic Alder Creek mining district near Mackay, Idaho. Phoenix holds an 80% ownership stake in the Empire Mine, which has a rich history of producing high-grade copper, gold, silver, zinc, and tungsten.
Since 2017, Phoenix has executed extensive drilling initiatives, resulting in a significant expansion of the Empire Open-Pit resource. In May 2024, the Company published its inaugural mineral reserve statement for the Empire Open-Pit Mine, detailing proven and probable reserves of 10.1 million tonnes containing 109,487,970 lbs of copper, 104,000 ounces of gold, and 4,654,400 ounces of silver. The reserve represents a combined 66,467 tonnes of copper equivalent metal.
In addition to the Empire Mine, Phoenix’s district holdings include the Horseshoe, White Knob, and Blue Bird Mines, a new high-grade silver and lead orebody at Red Star, and the Navarre Creek gold exploration project. Phoenix also owns two cobalt properties situated along the Idaho Cobalt Belt. More details on the Company, its assets, and its objectives can be found on Phoenix Copper’s website at phoenixcopperlimited.com.
For further media enquiries please contact:
Mark Foxwell, Senior Director, Lantern Comitas
M: +44 (0)7796473020
Email: [email protected]
