Phoenix Copper agrees equipment purchase, loan refinancing

19th Feb 2024 15:43

(Sharecast News) - Phoenix Copper updated the market on the acquisition of equipment for its Empire open-pit mine in Idaho on Monday, along with the refinancing of its short-term loan facility.

The AIM-traded firm said that, in accordance with its announcement on 26 January, it had finalised an asset purchase agreement to procure two pre-owned ball mills.

It said the mills were designated for the processing circuit at the Empire open-pit mine.

The completion and funding of the agreement was scheduled for 15 March, pending a final inspection and inventory of parts and components.

Phoenix's directors expected that acquiring the mills at a notable discount compared to new equipment prices would significantly benefit the project economics of the Empire mine, while also reducing the procurement timeline for these critical components.

Additionally, Phoenix Copper said it had reached an agreement to refinance its existing $2m short-term loan facility into an 18-month term loan.

Legal documentation for the refinancing was currently being finalised.

Until the execution of the term loan documents, the lender had agreed to waive its conversion rights on the existing facility until 1 March.

At 1511 GMT, shares in Phoenix Copper were down 2.07% at 11.14p.

Reporting by Josh White for Sharecast.com.