Phoenix Global Mining raises £0.95m for flagship mine

Phoenix Global Mining on Wednesday reported that it has successfully raised £0.95m before expenses through a share placing and subscription, with the funds intended to develop its flagship asset.

The US-focused miner said it issued 5.6m shares at a price of 17p each and will issue one warrant for every four new shares subscribed, exercisable at 28p per share and valid until the end of January 2022.

Dennis Thomas, chief executive of Phoenix, said: "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."

Funds raised will be used to support the AIM traded company's historically producing Empire mine in Idaho, where Phoenix intends to "substantially" increase its acreage surrounding the Empire mine to accommodate the expanding resource.

A new resource statement is underway following the 2018 drill programme at the project and is now scheduled for completion at the end of the current quarter.

"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," said Thomas.

Phoenix Global Mining's shares were up 2.63% at 19.50p at 1306 GMT.