Share Prices & Company Research

Market News

22 Feb 2021 | 15:10

Phoenix Copper draws down ?2m facility for Empire Mine development

(Sharecast News) - North America-focussed base and precious metals producer Phoenix Copper has drawn down on a £2m debt facility, it announced on Monday, to accelerate development of the Empire Mine open pit copper project in Idaho.

The AIM-traded firm said the facility had a nine month term, was unsecured and paid interest at an annual rate of 8%.

"On 16 February we announced the results of our updated economic model on the Empire Mine open pit copper project," said chief financial officer Richard Wilkins, noting that the open pit contained measured and indicated resources of some $1.4bn, with the base case economic model generating net revenue of almost $800m and an EBITDA of more than $300m over an initial 10-year project life, at a copper price of $3.60 per pound.

"The pre-production capital expenditure is expected to be paid off in under two years, with over $40m of free cash generated in the first year of operations.

"The facility will allow the company to accelerate project development whilst we work on the final project financing package, which will be primarily debt related, and will be used to repay the facility."

Wilkins said the next objective was to submit the project plan of operations to the relevant authorities as soon as possible, so that the company could start the final stages of construction permitting.

"We consider that the terms of the Facility demonstrate a strong vote of confidence in our operations, and we look forward to becoming a copper-led US mining operation, delivering copper into the US electrification programme on a timely basis."

At 1440 GMT, shares in Phoenix Copper were down 1.15% at 38.55p.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 14th May 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.