TIDMPXC
RNS Number : 1338G
Phoenix Copper Limited
28 March 2022
Phoenix Copper Limited / Ticker: PXC / Sector: Mining
28 March 2022
Phoenix Copper Limited
("Phoenix" or the "Company")
Final audited results for the year ended 31 December 2021
Notice of AGM
Phoenix Copper Limited (AIM: PXC; OTCQX ADR: PXCLY), the AIM
quoted USA focused base and precious metals emerging producer and
exploration company, is pleased to announce its audited results for
the year ended 31 December 2021. All references to $ are United
States dollars.
Highlights
Corporate & Financial:
- Gross proceeds of $26.0 million raised by way of subscription, placing and open offer
- Investment in Empire Mine increased to $26.12 million (2020: $14.79 million)
- Net assets increased to $37.78 million (2020: $13.83 million)
- Group reports unchanged net loss of $0.97 million (2020: $0.97 million)
- Year-end cash balance of $13.05 million (2020: $1.15 million); no debt
- Company loan to operating subsidiary increased to $19.16 million (2020: $11.28 million)
- Company's shares commenced trading on OTCQX as American
Depositary Receipts with The Bank of New York Mellon sponsoring and
managing the Program
- Company acquisition of third party royalties payable by Empire Mine
- Catherine Evans appointed as an Independent Non-Executive
Director and as Chairman of newly created ESG & Sustainability
Committee, and
- Harry Kenyon-Slaney appointed to the Company's Advisory Board
Operational:
- Empire Mine open pit feasibility model completed:
pre-production capital expenditure payback less than two years,
gross revenue of $836 million over 10 years, $43 million post-tax
cash flow in year 1 (at $3.60 / lb copper price)
- Plan of Operations filed with the regulatory authorities to
commence final permitting stage of Empire open pit mine
- Empire land holdings increased by 2,317 acres to 8,034 acres
(32.51 square kilometres), including an additional 1,157 acres at
the Navarre Creek gold zone
- Ground magnetics and hyperspectral mineral geophysical surveys
completed at Red Star silver, Horseshoe silver and Navarre Creek
gold; new mineralised areas of interest identified
- Ongoing exploration and drilling programmes at Red Star,
Navarre Creek and the historically mined high grade Empire
underground sulphide copper deposit; 8.38% copper intercepted
- ESG Program initiated and local Community Advisory Team appointed
- Earn-In Agreement signed with Electra Battery Materials
Corporation on Redcastle Idaho Cobalt Belt project
Annual General Meeting:
The Company also announces that the Annual General Meeting
("AGM") will be held at the Washington Mayfair Hotel, 5 Curzon
Street, London W1J 5HE on 12 April 2022 at 11.00 BST.
The Notice of AGM and Forms of Proxy will be despatched to
shareholders on 28 March 2022 and will be available on the
Company's website at www.phoenixcopperlimited.com .
The Company's Annual Report and Consolidated Financial
Statements for the year ended 31 December 2021 will also be
available on the website from 29 March 2022.
Environmental, Social, and Corporate Governance
Phoenix is committed to meeting and exceeding the environmental
standards required by law as a core value of the Company. The
baseline environmental data collected to date will be used for
furthering the permitting process, but as importantly, will be used
as the building blocks for the Company's ongoing Environmental,
Social, and Corporate Governance (ESG) platform, overseen by the
Company's ESG & Sustainability Committee.
Market Abuse Regulation (MAR) Disclosure
The Company deems the information contained within this
announcement to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014, which has been
incorporated into UK law by the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Contacts
For further information please visit
https://phoenixcopperlimited.com or contact:
Phoenix Copper Limited Ryan McDermott Tel: +1 208 954
Richard Wilkins 7039
Brittany Lock (IR) Tel: +44 7590
216 657
Tel: +1 208 794
8033
SP Angel Corporate David Hignell / Caroline Rowe Tel: +44 20 3470
Finance LLP (Nominated 0470
Adviser)
------------------------------------ ------------------
Tavira Securities Jonathan Evans / Oliver Stansfield Tel: +44 20 7100
Limited (Joint Broker) 5100
------------------------------------ ------------------
WH Ireland (Joint Harry Ansell / Adam Pollock Tel: +44 20 7220
Broker) / Katy Mitchell 1666
------------------------------------ ------------------
Panmure Gordon (UK) John Prior / Hugh Rich / Ailsa Tel: +44 20 7886
Limited (Joint Broker) Macmaster 2500
------------------------------------ ------------------
EAS Advisors (US Matt Bonner / Rogier de la Rambelje Tel: +1 (646)
Corporate Adviser) 495-2225
------------------------------------ ------------------
BlytheRay Tim Blythe / Megan Ray Tel: +44 20 7138
(Financial PR) 3204
------------------------------------ ------------------
Notes
Phoenix Copper Limited is a USA focused, base and precious
metals emerging producer and exploration company, initially
targeting copper and zinc production from an open pit mine.
Phoenix's primary operations are focused near Mackay, Idaho in
the Alder Creek mining district, at the 80% owned Empire Mine
property, which historically produced copper at grades of up to 8%,
as well as gold, silver, zinc and tungsten, from an underground
mine.
Since 2017, Phoenix has carried out extensive drill programmes
which resulted in the publication of a NI 43-101 PEA in October
2020 for an open pit heap leach solvent extraction and
electrowinning ("SX-EW") mine, which was updated in October 2020.
The contained metal in all NI 43-101 compliant categories of
resources, measured, indicated, and inferred, stand at 129,641
tonnes of copper, 355,523 ounces of gold, 10,133,772 ounces of
silver and 58,440 tonnes of zinc. Phoenix updated its economic
model in February 2021 to include the processing of all contained
metals through a two phased approach.
In addition to Empire, the district includes the historic
Horseshoe, White Knob and Blue Bird Mines, past producers of
copper, gold, silver, zinc, lead and tungsten from underground
mines. A new discovery at Red Star, 330 metres northwest of the
Empire Mine proposed open pit, has revealed high grade silver /
lead sulphide ore and from three shallow exploration drill holes. A
maiden resource of 103,000 tonnes containing 173.4 g/tonne silver,
0.85 g/tonne gold and 3.85% lead (1.6 million ounces silver
equivalent) was reported in an NI 43-101 technical report published
in May 2019. Additionally, the district includes the Navarre Creek
Project, a volcanic hosted, precious metals target in a 14.48 sq km
area. The Company's total land package at Empire comprises 8,034
acres (32.51 sq kms).
At Empire, it is estimated that less than 1% of the potential
ore system has been explored to date and, accordingly, there is
significant opportunity to increase the resource through phased
exploration. The stated aim of the Company is to fund this phased
exploration through free cashflow generated by its initial mine. A
Plan of Operations in respect of the initial open pit mine was
filed with the relevant regulatory authorities in June 2021.
Phoenix also has two wholly owned cobalt properties on the Idaho
Cobalt Belt to the north of Empire. An Earn-In Agreement has been
signed with Electra Battery Materials Corporation (formerly First
Cobalt Corporation), Toronto, in respect of one of those
properties.
Phoenix is listed on London's AIM (PXC), and trades on New
York's OTCQX Market (PXCLF and PXCLY (ADRs)). More details on the
Company, its assets and its objectives can be found on PXC's
website at https://phoenixcopperlimited.com.
CHAIRMAN'S STATEMENT
Dear Shareholders
It is with great pleasure that we present our 2021 Report &
Accounts for what has been an exciting and transformative year for
our Company. In particular we are now in the permitting and
development phase of the Empire open-pit mine, as well as making
progress in revealing the potentially world-class porphyry system
we believe to be the source of the mineral resources we have
already identified. We are grateful to all of you who supported our
over-subscribed $25 million fund raise last March.
As I write, the chaos and savagery in Eastern Europe threaten to
drag us all back to the dark decades of the 1930s and 40s. Our
thoughts and prayers are with the Ukrainians. We face a new world
order in which we need to re-establish self-sufficiency in
essential items, including metals. The Russian invasion of Ukraine,
with the resultant bans on trade, has driven commodity prices to
record levels. Russia's copper exports of some 750,000 tonnes per
annum account for approximately 3.5% of global annual consumption
of mined copper - a market where a supply swing of 200,000 tonnes
has a major impact on pricing.
It remains to be seen if the conflict will precipitate a global
slump and associated fall in metal prices. However, the recent
spikes in metal prices were evidence of trends which have been
weighing on supplies of copper, silver, cobalt and zinc for some
time. It is likely that some of the more vociferous demands for
instant and total electrification to stave off global warming may
not be immediately satisfied while we reduce our dependence upon
Russian hydrocarbons, and some of the more optimistic forecasts on
renewables and electric vehicles may prove to be just that, but the
move towards clean energy and the infrastructure required will
continue to ensure shortages of the metals we are on the point of
producing at Empire, and, in due course, on the Idaho Cobalt Belt.
To put matters into further perspective, our Nominated Adviser, SP
Angel, estimated that the US Administration's target for 30GW of
offshore wind farms would potentially require an additional 240
million tonnes of copper, or around 10 years of global mined
production.
In previous reports I have mentioned how fortunate we are to be
operating in the State of Idaho, USA. Recent developments, in the
Ukraine and elsewhere, underline how vital it is for us to be
there. A majority of the top ten copper projects under development
are funded by Asian companies, who will absorb most, if not all, of
the incremental increase in production, whilst in Chile, the
world's largest producer with approximately 28% of production,
there are more strident calls for nationalising or imposing heavy
tax increases on companies producing over 50,000 tonnes per annum.
The potentially unsustainable dependency on China for a long list
of metals crucial to Western defence requirements, including
cobalt, tungsten (also in evidence at Empire), and rare earths also
exposes the importance of jurisdictional location.
Fortunately, the current US Administration is reacting to this
emergency. ESG issues have grown from being an area to which many
miners paid lip service, to being the most important consideration
for many investors, and NGOs and environmentalists have, quite
rightly in many cases, castigated an industry notorious for
accidents, environmental disasters, and lack of engagement with
local communities. However, many Americans are waking up to the
possibility that it might be a good idea to have their own sources
of critical metals, as long as they are responsibly mined.
Investors are also beginning to differentiate between "good" and
"bad" mining, rather than banning the sector completely from
portfolios. We hope to form a part of this process, differentiating
ourselves from mining companies which use cyanide, source cobalt,
tin and coltan mined by children in the Congo, which is then
smelted in China, or use acid and steam to process tar sands, or
generate a percentage of their profits from coal, or pump large
quantities of desalinated water up to high altitudes where their
operations then use diesel-generated electricity.
As we near the completion of the permitting process for the
Empire open-pit mine, we will continue to emphasise our compliance
with the best levels of industry practice. Already, the state of
Idaho has the 3rd highest percentage of electricity generated from
renewables in the United States, at 76%. This is behind Vermont and
Maine, neither of which is noted for its mining industry. In
addition, our proposed aerial tramway would generate more
electricity than it uses, as the loaded ore buckets descending from
the open-pit to the processing plant pull the empty ones back up
the hill, dispensing with the need for haulage trucks, with the
associated noise, dust and water consumption, diesel, and a
3.5-mile haul road. Our carbon emissions per tonne of copper
produced will be among the industry's lowest. Moreover, our gold
and silver can be extracted using ammonium thiosulphate, rather
than cyanide, which will make the precious metals permitting
process much simpler.
As part of the Empire mine permitting process we gave a
presentation and held a well-attended Q & A session with the
citizens of Mackay, in December last year, and have created a 13
strong consultative committee which will meet at least four times a
year to keep us abreast of any issues worrying local interests and
keep them appraised of developments and any potential impacts. I
draw your attention to the report by the Chairman of our ESG &
Sustainability Committee, Catherine Evans, and would like to thank
her and Lenie Wilkie, our ESG Program Coordinator based in Mackay,
for all their hard work in this area.
Regarding the timetable and funding, I am happy to report that
several US, as well as other investors, have expressed interest in
participating in a debt instrument to fund the entire capital
expenditure needed to put the Empire open-pit mine into production.
At $4/lb copper (the price has recently been as high as $5/lb), our
current preliminary economic assessment model shows revenues in the
first 12 months of production of over $100 million, significantly
higher than our estimates for pre-production capital expenditure.
This should enable us to keep our promise of getting into
production without issuing further equity. Further announcements on
this will be made in due course.
As ever, I thank you all for your continued support and for the
expanded team's hard work in the face of Covid-induced adversity. I
look forward to keeping you abreast of developments in what should
be another transformational year for Phoenix Copper Ltd.
Marcus Edwards-Jones
Executive Chairman
25 March 2022
CHIEF EXECUTIVE OFFICER'S REPORT
Principal activities and review of the business
Firstly, I would like to echo our Chairman's sentiments
regarding the current situation in Ukraine. It is sometimes all too
easy to forget how fortunate we are to live and operate in a stable
geopolitical jurisdiction. Let us not take that for granted.
The Company started 2021 on a positive tone, with the February
release of the Fraser Institute Mining Report's Policy Perception
Index, which placed Idaho as the world's top mining jurisdiction as
it relates to environmental regulations, the legal system and
taxation regime, and socioeconomic and community development
conditions, just to name a few of the factors used in the Index.
The Company continued a string of positive achievements, with the
completion of an over-subscribed $25 million financing, which
allowed us to continue apace with the important tasks of the
feasibility study and environmental permitting for the Empire
open-pit copper mine, and the continued exploration of the Empire
underground sulphides, the Red Star silver-lead deposit, the
Navarre Creek gold project, and the Horseshoe-White Knob
prospects.
Although the environmental permitting of the Empire open-pit
mine began in late 2017 with the initiation of environmental
baseline studies, in June the Company completed an initial Plan of
Operations that officially commenced the final permitting stage of
the Empire mine. A Bankable Feasibility Study on the open-pit
resource was also initiated in 2021 and combines all the drilling,
analytical, and engineering data collected on the project to date.
The Feasibility Study will convert the existing Empire resource
into a reserve category, and perfect a final cash flow model with
detailed capital and operating costs. The current preliminary
economic assessment level cash flow model shows gross revenue of
$836 million over ten years of mine life, and $43 million post-tax
cash flow in year 1 at a $3.60/lb copper price. These project
economics improve significantly at current metal prices.
The Company completed a core drilling program in the Empire
underground sulphides during the year and encountered the first
notable copper sulphide intercept of 8.3%. In addition to the
elevated copper value, the intercept was important in that it was
our first view of the sulphide material mined prior to World War
II. That intercept provided us with valuable information regarding
the "roots" of the sulphide system and will anchor future drilling
programs targeting the deeper sulphides. The Company also
commissioned ground magnetics and hyperspectral mineral geophysical
surveys at Red Star, Horseshoe, and Navarre Creek. The results of
those surveys were positive and have provided critical targeting
information for future drilling programs.
The Company's cobalt holdings at the Redcastle Idaho Cobalt Belt
property in Lemhi County were signed to an earn-in agreement with
Electra Battery Materials (formerly First Cobalt Corporation), the
Toronto-based owner of the Iron Creek cobalt mine, which shares a
common border with the Redcastle property. The earn-in agreement
included an initial payment of cash and Electra shares to Phoenix,
followed by two work commitments of $1,500,000 each over a
five-year period, thereby earning Electra a 75% interest in the
property. I have been encouraged after reading Electra's latest
drilling results from their Iron Creek property. Our Redcastle
property borders Iron Creek on the east and I particularly look
forward to their drilling results from the eastern side of Iron
Creek, nearest Redcastle.
2021 also saw the creation of the Company's ESG program, due in
large part to the efforts of Director Catherine Evans and our ESG
Program Coordinator Lenie Wilkie. Cathy and Lenie spearheaded the
development of the program, oversaw the Company's first local Town
Hall public meeting in December, and have recently organized a
Community Advisory Team comprised of local citizens and business
owners. The local Mackay community has been very supportive of our
projects since we first began field work in 2017. The outreach
programs developed by our ESG team have further strengthened our
relationships and provided a communication network between the
Company and local stakeholders. In addition to the rollout of our
ESG program, I am also pleased to announce the hiring of a US-based
Public Relations Manager, Ms. Brittany Lock. Brittany's previous
experience in mining industry PR and her knowledge of media and
media production will prove invaluable as we continue to develop
stakeholder relationships.
It is also important to note that nearly all of the Company's
engineers and geologists in Idaho have moved themselves and their
families to the project site in Mackay, Idaho, rather than
traveling to home bases elsewhere for days off. The significance of
this should not be understated. It requires a great deal of
confidence in the project to pack up and move spouses and children
to a new home. The Phoenix team has always had a great deal of
confidence in our Idaho projects and the migration of our
professional staff and their families to new home bases in Mackay
exemplifies that confidence.
I have said this many times before because it is so vitally
important. Phoenix has been provided a unique opportunity with the
variety and grade of mineralisation located on our Idaho
properties. The mix of "green metals" like copper and cobalt, and
the prospective gold and silver targets, all residing within the
Company's current claim holdings, puts us in an enviable position
for near term production and years of exploration potential.
2021 was not without its challenges. The supply issues resulting
from the global pandemic, coupled with contractor staffing
shortages, did cause some delays, but the Phoenix team managed to
accomplish the goals outlined for 2021. Such delays were not unique
to Phoenix and were shared by the industry as a whole. I fully
expect that we will encounter many of the same supply chain and
staff shortages in 2022, although we expect such disruptions to be
minimalised due to the solid working relationships the Company has
built with our contractors, consultants, and the local
community.
Empire Mine - Polymetallic Open-Pit Oxide Deposit
An updated NI 43-101 compliant resource was completed by
Hardrock Consulting in October 2020 and reported for the
polymetallic Empire Mine open-pit oxide deposit. The updated
resource showed a 51% increase in the Measured and Indicated
category from the previous year's resource. Including the Inferred
resources, the Empire open-pit oxide deposit now contains 129,641
tonnes of copper, 58,440 tonnes of zinc, 10,133,772 ounces of
silver and 355,523 ounces of gold.
Mineral Resource Statement for Empire Mine, after Hard Rock Consulting
October 2020
--------------------------------------------------------------------------------------------------------------
CLASS Tonnes Cu Average Grade Metal Content
Equiv
%
----------- ----------- ------ ------------------------------------ -------------------------------------------
Cu Zn Ag Au Cu Zn Ag Au Cu Equiv
----------- ----------- ------
% % g/t g/t tonnes tonnes Ozs ozs Tonnes
----------- ----------- ------
Measured 8,289,719 0.81 0.42 0.22 11.4 0.327 34,655 18,160 3,031,791 87,036 67,013
----------- ----------- ----- ----- ------- ----------
Indicated 14,619,340 0.72 0.36 0.18 9.7 0.322 52,888 25,711 4,563,407 151,370 105,899
M+I 22,909,059 0.75 0.38 0.19 10.3 0.324 87,543 43,871 7,595,198 238,406 172,912
----------- ----- ----- ------- ----------
Inferred 10,612,556 0.75 0.4 0.14 7.4 0.343 42,098 14,569 2,538,574 117,117 79,296
----------- ----------- ----- ----- ------- ---------- ------------
Phoenix is continuing down the feasibility and permitting
pathways with the polymetallic resource, having completed all the
environmental studies directly applicable to the permitting and
mine planning. Discussions are underway with potential debt
financiers to construct the project, to enable production to
commence as soon as possible during 2023.
Empire Underground Sulphides
In July 2021, a core drilling program designed to target the
historically mined high grade sulphide vein system below the
open-pit copper oxide resource was initiated. The first drill hole
of the program that reached the design depth intercepted a
12.6-metre zone of strong to intense sulphide mineralization. Some
of the sulphide minerals identified by our geologists included
bornite, chalcocite, chalcopyrite, pyrite, galena, and pyrrhotite.
Further drilling continued to intercept high grade mineralisation
across a suite of metals, including 8.38% copper, significant
intercepts of gold, silver and zinc, as well as anomalous
molybdenum and tungsten mineralization. A total of 967 metres of a
4,500-metre planned program has been drilled to date, and further
drilling will continue during 2022.
Red Star - High-grade Silver and Lead
Red Star is a high-angle silver-lead vein system hosted in
andradite-magnetite and located 330-metres north-northwest of the
Empire oxide pit. Red Star was identified from a 20-metre-wide
surface outcrop across a skarn structure. Surface mineralisation is
a mix of copper and iron oxides and sulphides, with strong
chrysocolla and bornite showings, exposed in a heavily timbered
canyon. In 2018, three reverse circulation ("RC") drill holes were
drilled on the target and assay results reported the presence of
high-grade lead and silver sulphides including intercepts of 20%
lead and 1,111 g/t silver. In early May 2019, the Company announced
a small maiden Inferred sulphide resource of 103,500 tonnes,
containing 577,000 ounces of silver, 3,988 tonnes of lead, 957
tonnes of zinc, 338 tonnes of copper, and 2,800 ounces of gold.
Class Tons Ag Ag Au Au Pb Pb Zn Zn Cu Cu
(x1000) g/t oz g/t oz % lb % lb % lb
-------- ------ -------- ------ -------- ----- --------- ----- --------- ----- --------
(x1000) (x1000) (x1000) (x1000) (x1000) % (x1000)
-------- ------ -------- ------ -------- ----- --------- ----- --------- ----- --------
Inferred 114.13 173.4 577.3 0.851 2.8 3.85 8,791.20 0.92 2,108.80 0.33 745
-------- ------ -------- ------ -------- ----- --------- ----- --------- ----- --------
Following the estimation of the Inferred resource, a second
ten-hole diamond drilling program was completed in 2020. The assay
results from that program confirmed the presence of the high-grade
silver and lead veins drilled in 2018, but also confirmed the need
for greater understanding of the structural geology in order to
direct further exploration. As a result, in 2021 the Company
commissioned a ground-based magnetics geophysical survey which
identified four high-amplitude areas of interest, including the
original discovery outcrop. The size and amplitude of the three new
areas of interest appear to be significantly greater than that of
the discovery outcrop, whilst further north-northeast magnetic
anomalies trending from the outcrop were also identified. In a
program designed to test and help delineate the boundaries of the
magnetic zones, seven further exploratory RC holes were drilled,
all of which encountered further mineralisation. A 3,000-metre
diamond core drilling program is now planned for 2022.
Navarre Creek - Volcanic-Hosted Gold Project
The Navarre Creek claim block is located approximately 8
kilometers west-northwest of the Empire open-pit mine, and was
acquired in 2019 as a gold exploration project with geology similar
to the volcanic-hosted gold fields on the Carlin Trend in Nevada,
home to several multimillion-ounce gold deposits.
During the summer of 2020, the Phoenix exploration team mapped
and sampled the Company's Navarre Creek property. 90 rock chip and
grab samples were collected in the hydrothermally altered volcanic
rocks that make up the Navarre Creek claims and sent to ALS
Laboratories in Reno, Nevada for geochemical analysis.
Of the 90 samples, 53 were above the detection limit for gold
with a high of 0.569 g/t, and 25 above the detection limit for
silver. There was also a strong correlation between elevated gold
values and elevated antimony values, typical in Carlin-type
epithermal gold systems. With the exception of one sample, all
samples with a gold value greater than 0.1 g/t occur within the
same alteration type, that being predominantly a jasperoid-hosted
quartz stockwork and micro-veining system. During 2021 a total of
169-line kilometres of ground-based field magnetics and airborne
hyperspectral imaging were completed for the entirety of the
Navarre Creek claim block. Two distinct intrusive bodies were
identified, partially concealed below glacial till showing strong
magnetic signatures which complement the existing jasperoid
outcrops. A northeast trending corridor of hydrothermal alteration,
approximately 2.3 miles long and 1 mile wide, was also identified,
consistent with the gold and silver bearing Carlin-style epithermal
deposits.
Markers for Carlin-style gold deposits are the presence of
jasperoids, and the association of gold, antimony, silver and zinc.
These markers are found at Navarre Creek. The results of these
surveys, together with the results of previous exploration,
highlight the prospectivity of the claim block. These positive
results will drive further exploration and drill targeting during
2022.
Empire Mine Expansion - Horseshoe, Whiteknob, and Windy
Devil
We have made a point of focusing our efforts on our flagship
Empire Mine projects. However, we have also increased our land
position from time-to-time as our geologists recognise prospective
and strategic opportunities. At the time of the Company's IPO in
mid-2017, our Empire Mine property consisted of 818 acres. Since
then, including the Navarre Creek claim block, we have increased
the core Empire claim group to 8,034 acres by expanding north to
the former Horseshoe and Whiteknob Mines and onto Windy Devil. This
expansion covers approximately 30 historic adits, shafts and
prospects, which exhibit geology and mineralogy similar to Red
Star, and which will be the subject of further exploration going
forward.
Idaho Cobalt Belt - Redcastle and Bighorn Projects
The Company owns two strategically located properties on the
Idaho Cobalt Belt in Lemhi County: Idaho, Redcastle and Bighorn. In
May 2021, the Redcastle holding was signed to an earn-in agreement
with Electra Battery Materials Corporation (formerly First Cobalt
Corporation), the Toronto-based owner of the Iron Creek Cobalt
Mine, which shares a common border with the Redcastle property. The
earn-in agreement included an initial payment of cash and Electra
shares to Phoenix, followed by two work commitments of $1,500,000
each over a five year period, enabling Electra to earn a 75%
interest in the Redcastle property. Redcastle is held by Borah
Resources Inc, the Company's 100% owned, Idaho registered
subsidiary.
The Bighorn property, located on the northern end of the Idaho
Cobalt Belt, is held by Salmon Canyon Resources, another 100%
owned, Idaho registered subsidiary. Bighorn is situated east of the
historic Salmon Canyon copper cobalt underground mine and shares a
common border with New World Resources' Colson cobalt-copper
project.
In addition to copper, cobalt is a critical metal for electric
vehicles and global electrification projects. Cobalt deposits are
rare, particularly in first world jurisdictions. The Company's
cobalt projects are located in the USA's only prospective cobalt
region, the Idaho Cobalt Belt, approximately 100 miles north of the
Empire Mine. In 2018 we announced the results of our 2017
reconnaissance programme of 46 surface grab samples which gave
cobalt values ranging from 2 ppm to 0.31% cobalt.
Outlook
The metals markets continue to perform well, with copper
recently climbing through an all-time high of $5.00/lb, zinc at a
15 year high of $1.71/lb, cobalt climbing back towards 2018 record
prices, and gold and silver remaining robust above $1,900 and
$24.50, respectively. I expect to see the metals markets,
particularly copper and cobalt, continue to perform well as the
electric vehicle and "green energy" initiatives continue to grow
globally. I also expect that the 10-year, $1.2 trillion US
Infrastructure Bill will buoy prices, as it was announced that
spending will begin in late 2023 and focus roughly $550 billion on
roads, bridges, ports, power transmission, and large water projects
over the following ten years. These projects alone will require
significant quantities of metal, whilst electric vehicle demands
will also likely stress global copper and cobalt supplies.
One of the most important attributes at Empire is the
polymetallic nature of the mineralised systems. In other words, we
have a variety of metal resources that provide us significant
optionality as metal prices fluctuate on supply and demand. In
addition to our open-pit copper oxide resource, which is now
officially moving through the permitting process, we also have the
high-grade silver and lead system of Red Star, the historically
mined high-grade deep sulphide system at Empire, the very
prospective volcanic-hosted gold system at Navarre Creek, and two
strategically located cobalt properties, one of which, Redcastle,
is located adjacent to the existing Iron Creek cobalt mine and is
being explored by the owner of Iron Creek, Electra Battery
Materials Corporation. The projects are all located in historically
mined districts in Idaho, USA, a geopolitically stable, pro-mining
jurisdiction.
Although I anticipate further pandemic related delays in the
coming year, Phoenix has a talented and dedicated team of
hardworking professionals, a supportive shareholder base, and a
strong relationship with the community in which we do business. My
outlook for the Company remains positive and I am excited to see
our accomplishments in 2022.
Key Performance Indicators ('KPIs')
To date the Group has focused on the delivery of the project
evaluation work programs to assess the available mineral resources
and the extraction methods to apply, each within the available
financial budgets. This work will continue until the relevant
feasibility studies are completed, and construction commences.
At that stage the Group will consider and implement appropriate
operational performance measures and related KPIs as the objective
of recommencing commercial production at the Empire Mine nears
fruition.
Conclusion
We are pleased to see the continued global push for electric
vehicles, large-scale electrification projects, and infrastructure
projects requiring substantial quantities of metal, specifically
copper. We have sufficient staffing numbers to complete the Empire
Mine Feasibility Study and to execute exploration programs at
Navarre Creek, Red Star, and the Empire sulphides.
In conclusion I would like to thank all our professional staff,
consultants and advisers, community liaisons, shareholders, and
directors who continue to put forth considerable effort, and
provide considerable support, to ensure the Company's success. I
look forward to reporting further positive news as we continue our
exploration and development programs during 2022.
Ryan McDermott
Chief Executive Officer
25 March 2022
Consolidated income statement Year Year
Ended Ended
31 December 31 December
2021 2020
Continuing operations Note $ $
Revenue 4 - -
Exploration & evaluation expenditure - -
------------- -------------
Gross loss - -
Administrative expenses (1,065,950) (922,647)
Other operating income 106,340 -
Loss from operations (959,610) (922,647)
Finance income 3,708 -
Finance costs (13,348) (49,203)
Loss before taxation (969,250) (971,850)
Tax on loss on ordinary activities - -
------------- -------------
Loss for the year (969,250) (971,850)
------------- -------------
Loss attributable to:
Owners of the parent (942,850) (956,656)
Non-controlling interests (26,400) (15,194)
------------- -------------
(969,250) (971,850)
------------- -------------
Loss per share attributable to owners
of the parent:
Basic and diluted EPS expressed in
cents per share 5 (0.90) (1.66)
------- -------
Consolidated statement of comprehensive income Year Year
Ended Ended
31 December 31 December
2021 2020
$ $
Loss for the year (969,250) (971,850)
------------- -------------
Total comprehensive income attributable
to:
Owners of the parent (942,850) (956,656)
Non-controlling interests (26,400) (15,194)
---------- ----------
(969,250) (971,850)
---------- ----------
Consolidated statement of financial position
31 December 31 December
2021 2020
Note $ $
Non-current assets
Property, plant and equipment -
mining property 6 26,124,030 14,789,004
Intangible assets 7 330,844 276,895
------------ ------------
26,454,874 15,065,899
------------ ------------
Current assets
Trade and other receivables 8 365,778 122,300
Financial assets 9 56,340 -
Cash and cash equivalents 13,046,529 1,146,490
------------ ------------
13,468,647 1,268,790
------------ ------------
Total assets 39,923,521 16,334,689
------------ ------------
Current liabilities
Trade and other payables 10 883,196 193,937
Other liabilities 11 250,000 1,549,000
------------ ------------
1,133,196 1,742,937
------------ ------------
Non-current liabilities
Other liabilities 11 250,000 -
Provisions for other liabilities 12 757,702 757,702
------------ ------------
1,007,702 757,702
------------ ------------
Total liabilities 2,140,898 2,500,639
------------ ------------
Net assets 37,782,623 13,834,050
------------ ------------
Equity
Ordinary shares 13 -
Share Premium 43,460,747 19,251,964
Retained loss (5,751,359) (5,517,549)
Foreign exchange translation reserve (18,588) (18,588)
Equity attributable to owners of
the parent 37,690,800 13,715,827
Non-controlling interests 91,823 118,223
------------ ------------
Total equity 37,782,623 13,834,050
------------ ------------
Consolidated Foreign
statement of exchange
changes Ordinary Share Retained translation Non-controlling
in equity shares premium loss reserve Total interest Total equity
$ $ $ $ $ $ $
At 1 January
2020 - 15,627,730 (5,186,083) (18,588) 10,423,059 133,417 10,556,476
Loss for the
year - - (956,656) - (956,656) (15,194) (971,850)
------------ ------------ ----------- ---------------- -------------
Total
comprehensive
income for
the year - - (956,656) - (956,656) (15,194) (971,850)
--------- ------------ ------------ ------------ ----------- ---------------- -------------
Shares issued
in the period - 3,908,477 - - 3,908,477 - 3,908,477
Share issue
expenses - (284,243) - - (284,243) - (284,243)
Share-based
payments - - 625,190 - 625,190 - 625,190
Total
transactions
with owners - 3,624,234 625,190 - 4,249,424 - 4,249,424
--------- ------------ ------------ ------------ ----------- ---------------- -------------
At 31 December
2020 - 19,251,964 (5,517,549) (18,588) 13,715,827 118,223 13,834,050
--------- ------------ ------------ ------------ ----------- ---------------- -------------
At 1 January 2021 - 19,251,964 (5,517,549) (18,588) 13,715,827 118,223 13,834,050
Loss for the year - - (942,850) - (942,850) (26,400) (969,250)
------------ ------------ --------- ------------ --------- ------------
Total comprehensive income for
the year - - (942,850) - (942,850) (26,400) (969,250)
------------ ------------ --------- ------------ --------- ------------
Shares issued in the period - 26,018,553 - - 26,018,553 - 26,018,553
Share issue expenses - (1,809,770) - - (1,809,770) - (1,809,770)
Share-based payments - - 709,040 - 709,040 - 709,040
Total transactions with owners - 24,208,783 709,040 - 24,917,823 - 24,917,823
------------ ------------ --------- ------------ --------- ------------
At 31 December 2021 - 43,460,747 (5,751,359) (18,588) 37,690,800 91,823 37,782,623
------------ ------------ --------- ------------ --------- ------------
Consolidated statement of cash flows 31 December 31 December
2021 2020
$ $
Cash flows from operating activities
Loss before tax (969,250) (971,850)
Adjustments for:
Share-based payments 191,856 229,904
(777,394) (741,946)
(Increase)/decrease in trade and other receivables (299,818) 145,632
Increase/(decrease) in trade and other payables 689,259 (88,963)
------------- ------------
Net cash generated used in operating activities (387,953) (685,277)
------------- ------------
Cash flows from investing activities
Purchase of intangible assets (53,949) (30,000)
Purchase of property, plant and equipment (10,238,492) (2,722,058)
(10,292,441) (2,752,058)
Cash flows from financing activities
Proceeds from the issuance of ordinary shares 25,939,203 3,908,477
Share-issue expenses (1,809,770) (284,243)
Proceeds from the issue of loan notes - 879,000
Repayment of loan notes (1,549,000) (130,000)
Net cash generated from financing activities 22,580,433 4,373,234
------------- ------------
Net increase in cash and cash equivalents 11,900,039 935,899
Cash and cash equivalents at the beginning of
the year 1,146,490 210,591
Cash and cash equivalents at the end of the year 13,046,529 1,146,490
------------- ------------
Significant non-cash transactions:
During the year the Directors capitalised $79,350 of fees into
shares (2020: $109,770), an amount of $517,184 (2020: $395,286) in
respect of the charge for share-based payments and an amount of
$500,000 in respect of deferred consideration (2020: $nil) were
also capitalised into mining property.
`
1 General information
Phoenix Copper Limited (the "Company") and its subsidiary undertakings
(the "Group") are engaged in exploration and mining activities,
primarily precious and base metals, primarily in North America.
The Company is domiciled and incorporated in the British Virgin
Islands on 19 September 2013 (registered number 1791533). The address
of its registered office is OMC Chambers, Wickhams Cay 1, Road
Town, Tortola VG1110, British Virgin Islands. The Company is quoted
on London's AIM (ticker: PXC) and trades on New York's OTCQX Market
(ticker: PXCLF; ADR ticker PXCLY).
The subsidiaries of the Company are:
Incorporated in the United States of America
Konnex Recourses Inc (80% equity holding)
Borah Resources Inc (100% equity holding)
Lost River Resources Inc (100% equity holding)
Salmon Canyon Resources Inc (100% equity holding)
2 Going concern
The Group currently has no income and meets its working capital
requirements through raising development finance. In common with
many businesses engaged in exploration and evaluation activities
prior to production and sale of minerals the Group will require
additional funds and/or funding facilities in order to fully develop
its business plan. The Group will also require funds to construct
its first operating mine. The directors believe that such funds
are likely to come from the arrangement of appropriate debt and/or
offtake finance arrangements. Further equity issues will be minimised
as far as possible. Ultimately the viability of the Group is dependent
on future liquidity in the development period and this, in turn,
depends on the availability of funds.
During the year the Company raised $26.0 million gross by way of
a subscription, placing and open offer to new and existing shareholders,
and the exercise of warrants. The Company also repaid all of its
existing unsecured loan notes.
The Covid-19 pandemic has had a significant, immediate impact on
the operations and funding of many businesses both in the USA and
globally. However, the Group completed a successful oversubscribed
fund raising during the year and continues to receive additional
funding from the exercise of warrants.
The directors prepare annual budgets and forecasts in order to
ensure that they have sufficient liquidity in place and that they
comply with the terms and conditions of their obligations in relation
to the ongoing development of the mining assets and the Group's
environmental and other commitments.
At the date of approval of these financial statements it is not
clear how long the current circumstances are likely to last and
what the long-term impact will be. However, having regard to the
above, and based on funds raised during the year, and continuing
to be received from the exercise of warrants, as well as their
latest assessment of the budgets and forecasts for the business
of the Group for at least 12 months from the date of approval of
these financial statements, the directors believe it appropriate
to adopt the going concern basis of accounting in preparing the
financial statements.
3 Basis of preparation
This preliminary information does not comprise full financial statements.
The significant accounting policies and other information contained
within this preliminary announcement has been extracted from the
Group's audited financial statements a copy of which is available
on the Company's website: www.pgmining.com.
The financial information is presented in US dollars.
4 Revenue
The Group is not yet producing revenues from its mineral exploration
and mining activities. The Company charged its subsidiary entities
$885,000 (2020: $535,000) in respect of management services provided.
5 Loss per share 31 December 31 December
2021 2020
$ $
Loss attributable to the parent used in calculating
basic and diluted loss per
Share (942,850) (956,656)
------------ ------------
Number of shares
Weighted average number of shares for the purpose
of basic earnings
per share 104,213,499 57,527,529
------------ ------------
Weighted average number of shares for the purpose
of diluted earnings
per share 104,213,499 57,527,529
------------ ------------
Basic loss per share (US cents per share) (0.90) (1.66)
------------ ------------
Diluted loss per share (US cents per share) (0.90) (1.66)
------------ ------------
Basic earnings per share amounts are calculated by dividing net
loss for the year attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares
outstanding during the year.
Where the Group has incurred a loss in a year the diluted
earnings per share is the same as the basic earnings per share as
the loss has an anti-dilutive effect.
The Company has potentially issuable shares of 18,602,920 (2020:
11,264,978) all of which relate to the potential dilution in
respect of warrants and share options issued by the Company.
6 Non-current assets Mining
Property
$
At 1 January 2020 11,671,660
Additions 3,117,344
------------
At 31 December 2020 14,789,004
------------
At 1 January 2021 14,789,004
Additions 11,335,026
------------
At 31 December 2021 26,124,030
------------
Net book value
At 1 January 2020 11,671,660
------------
At 31 December 2020 14,789,004
------------
At 31 December 2021 26,124,030
------------
Mining property assets relate to the past producing Empire Mine
copper - gold - silver - zinc project in Idaho, USA. The Empire
Mine has not yet recommenced production and no depreciation has
been charged in the statement of comprehensive income. There has
been no impairment charged in any period due to the early stage in
the Group's project to reactivate the mine.
7 Intangible assets
Exploration
and evaluation
expenditure
$
At 1 January 2020 246,895
Additions 30,000
----------------
At 31 December 2020 276,895
----------------
At 1 January 2021 276,895
Additions 53,949
----------------
At 31 December 2021 330,844
----------------
Exploration and evaluation expenditure relates to the Bighorn
and Redcastle properties on the Idaho Cobalt Belt in Idaho, USA.
The Bighorn property is owned by Salmon Canyon Resources Inc. The
Redcastle property is owned by Borah Resources Inc. Both companies
are wholly owned subsidiaries of the parent entity, and are both
registered and domiciled in Idaho. The Redcastle property is
subject to an Earn-In Agreement with First Cobalt Idaho, a wholly
owned subsidiary of Electra Battery Materials Corporation (formerly
First Cobalt Corporation) of Toronto, Canada.
8 Trade and other receivables
31 December 31 December
2021 2020
$ $
Other receivables 207,949 68,847
Prepaid expenses 157,829 53,453
365,778 122,300
------------- -------------
There were no receivables that were past due or considered to be
impaired. There is no significant difference between the fair value
of the other receivables and the values stated above.
9 Financial assets
31 December 31 December
2021 2020
$ $
Quoted investments 56,340 -
------------ ------------
In May 2021 the Group entered into an earn-in agreement with
First Cobalt Idaho, the wholly owned subsidiary of Toronto-based
Electra Battery Materials Corporation (formerly First Cobalt
Corporation) ("Electra"), in respect of the Group's Redcastle
cobalt property on the Idaho Cobalt Belt. The Group received
consideration of $50,000 and 200,000 shares in Electra valued at
$56,340, a total initial consideration of $106,340.
First Cobalt Idaho can earn a 51% interest in Borah Resources
Inc, the Company's 100% owned subsidiary and owner of the Redcastle
property, by spending no less than $1,500,000 in exploration and
related work on Redcastle over an initial three-year period, and by
paying a further $100,000 to the Group on the third anniversary of
the Agreement ("Phase 1").
Subject to the completion of Phase 1, First Cobalt Idaho may
earn an additional 24% interest in Borah Resources, for a total
interest of 75%, by spending no less than a further $1,500,000 in
exploration and related work on Redcastle over a further two year
period, and by paying a further $150,000 to the Group in cash or
the equivalent in unrestricted Electra shares, at the Group's
option, on the fifth anniversary of the Agreement, and by providing
Phoenix with a NI 43-101 compliant Preliminary Economic Assessment
("PEA") for the Redcastle property ("Phase 2").
Upon completion of Phase 1 and Phase 2, it is intended that the
Group and First Cobalt Idaho will enter into a joint venture
agreement with First Cobalt Idaho as managers, and will share in
the capital expenditures for the ongoing development of Redcastle
in accordance with their respective ownership interests (First
Cobalt 75%, Phoenix 25%). If either party does not contribute
pro-rata to its ownership interest, that interest will be diluted
accordingly. Should the Group's interest in the joint venture be
reduced to 10% or less, a 2.5% royalty shall become payable to the
Group. This royalty can be acquired by First Cobalt Idaho for
$500,000 per each 0.5%.
10 Trade and other payables
31 December 31 December
2021 2020
$ $
Trade payables 862,907 156,116
Other payables 20,289 8,355
Accrued interest - 29,466
------------ ------------
883,196 193,937
------------ ------------
All liabilities are payable on demand or have payment terms of
less than 90 days. The Group is not exposed to any significant
currency risk in respect of its payables.
11 Other liabilities
31 December 31 December
2021 2020
$ $
Current liabilities
Loan notes - 1,549,000
Deferred consideration 250,000 -
------------ ------------
250,000 1,549,000
Non-current liabilities
Deferred consideration 250,000 -
------------ ------------
In April 2021 the Group entered into an agreement with Mackay
LLC to acquire 1% of the 2.5% net smelter royalty payable on mining
leases on the Empire Mine in Idaho, USA. Total consideration
payable to Mackay LLC is $800,000, of which $300,000 has been paid.
Deferred consideration comprises two further payments of $250,000
each, due on 31 December 2022 and 31 December 2023.
In 2020 the Group had outstanding loan notes with a total
redemption value of $1,549,000. $929,000 related to 12% unsecured
loan notes, with a final redemption date of 30 September 2021. The
Group also issued an unsecured loan note in the amount of $620,000,
repayable on 31 March 2021 plus a fixed rate coupon equivalent to
6.5% of principal value.
12 Provisions
31 December 31 December
2021 2020
$ $
Decommissioning provision 100,000 100,000
Royalties payable 657,702 657,702
------------ ------------
757,702 757,702
------------ ------------
There has been no change to provisions in the year ended 31
December 2021.
The provision of $100,000 for decommissioning the Empire Mine is
based on the directors' estimate after taking into account
appropriate professional advice.
The other provision of $657,702 arises from a business
combination in 2017 and comprises potential royalties payable in
respect of future production at the Empire Mine. This liability
will only be payable if the Empire Mine is successfully restored to
production and will be deducted from the royalties payable. The
amount of the provision will be reassessed as exploration work
continues and also on commencement of commercial production.
13 Share capital
Group and Group and
Company Company
Number Number
2021 2020
Number of ordinary shares of no par value
At the beginning of the year 63,306,747 44,784,881
Issued in the year 54,108,933 18,521,866
At the end of the year 117,415,680 63,306,747
------------ -----------
The Company does not have an authorised capital and is
authorised to issue an unlimited number of no-par value shares of a
single class.
In the year the Company issued 54,108,933 ordinary shares at an
average issue price of $0.48 per share to raise $26.0 million
before expenses of issue. All issued shares were fully paid.
Since the year end the Company has issued a further 4,040,033
shares at $0.32 per share from the exercise of warrants. The
Company currently has 121,455,713 ordinary shares in issue.
The ordinary shares in the Company have no par value. All
ordinary shares have equal voting rights in respect of shareholder
meetings. All ordinary shares have equal rights to dividends and
the assets of the Company.
The Company has issued warrants to subscribe for additional
shares. Each warrant provides the right to the holder to convert
one warrant into one ordinary share of no-par value at exercise
prices ranging from GBP0.16 to GBP0.50. At 31 December 2021 the
number of warrants in issue was 12,577,920 (2020: 7,589,978).
The Company has issued options to subscribe for additional
shares to the directors and senior employees of the Group. Each
option provides the right to the holder to subscribe for one
ordinary share of no par-value, subject to the vesting conditions,
at exercise prices of GBP0.17, GBP0.30 and GBP0.50. At 31 December
2021 the number of options in issue was 6,025,000 (2020:
3,675,000).
14 Share-based payments
The Company has issued 12,577,920 (2020: 7,589,978) warrants to
subscribe for additional share capital of the Company. Each warrant
entitles the holder to subscribe for one ordinary equity share in
the Company. The right to convert each warrant is
unconditional.
Additionally, the Company has issued 6,025,000 (2020: 3,765,000)
share options to directors and senior employees of the Group. Each
share option entitles the holder to subscribe for one ordinary
equity share in the Company once the vesting conditions have been
satisfied.
In the periods presented the Company has settled remuneration
liabilities by the issue of equity in lieu of cash payments for
services but has not operated any equity-settled share based
incentivisation schemes for employees.
Equity-settled share-based payments are measured at fair-value
(excluding the effect of non-market-based vesting conditions) as
determined through use of the Black-Scholes technique, at the date
of issue. The warrants were issued as exercisable from the date
they were issued and there are no further vesting conditions
applicable.
Warrants issued Weighted 31 December 31 December
Average 2021 2020
Exercise
price Number Number
At the beginning of the year GBP0.30 7,589,978 7,115,195
Issued in the year GBP0.16 - 386,000
Issued in the year GBP0.18 - 905,467
Issued in the year GBP0.28 - 159,541
Issued in the year GBP0.39 4,812,396 -
Issued in the year GBP0.50 2,000,000 -
Exercised in the year GBP0.18 - (375,000)
Exercised in the year GBP0.20 (250,000) (100,000)
Exercised in the year GBP0.28 (847,962) (369,225)
Exercised in the year GBP0.35 (81,151) -
Exercised in the year GBP0.385 (256,997) -
Exercised in the year GBP0.40 (61,250) -
Exercised in the year GBP0.60 (44,056) -
Lapsed GBP0.20 - (132,000)
Lapsed GBP0.60 (283,038) -
At the end of the year GBP0.29 12,577,920 7,589,978
------------ ------------
Share options issued Weighted 31 December 31 December
average 2021 2020
Exercise
price Number Number
At the beginning of the year GBP0.23 3,675,000 3,150,000
Issued in the year GBP0.30 - 1,750,000
Issued in the year GBP0.50 2,350,000 -
Lapsed in the year GBP0.45 - (1,225,000)
------------ ------------
At the end of the year GBP0.34 6,025,000 3,675,000
------------ ------------
The total share-based payment charge for all warrants and
options in the year was $709,040 of which $191,856 has been charged
to profit and loss and $517,185 allocated to Mining Property (2020:
$229,904 and $395,286 respectively). The share-based payment charge
was calculated using the Black-Scholes model. All warrants issued
vest immediately on issue. Share options vest up to a 36-month
period from the date of issue, or on the achievement of certain
vesting milestones.
Volatility for the calculation of the share-based payment charge
in respect of both the warrants and the share options issued was
determined by reference to movements in the Company's quoted share
price on AIM.
The inputs into the Black-Scholes model for the warrants and
share options issued were as follows:
31 December 31 December
2021 2021
Warrants Share options
issued issued
Weighted average share price at grant date GBP0.37 GBP0.47
Weighted average exercise prices GBP0.42 GBP0.50
Expected volatility 54.6% 69.25%
Expected life in years 0.97 1.0
Weighted average contractual life in years 0.74 1.4
Risk-free interest rate 1.5% 1.5%
Expected dividend yield - -
Fair-value of warrants and options granted (pence) GBP0.048 GBP0.123
------------ --------------
The warrants were issued in two placements. The share price at
the date of grant was between GBP0.34 to GBP0.44. The warrant
exercise prices at the date of grant were between GBP0.385 to
GBP0.50. The share options were issued in one placement of two
tranches with different vesting milestones, with weighted average
expected lives of 1.4 years. The share price at the date of grant
was GBP0.47 and the exercise price for both tranches is GBP0.50.
The warrants issued are all exercisable on the date of issue. The
number of outstanding share options include 1,925,000 options which
are currently exercisable at a price of GBP0.17 per share and
1,750,000 options which are exercisable at GBP0.30 per share.
The volatility for the warrants issued ranged from 50.00% to
71.95%. The fair-values of warrants issued in the year ranged from
GBP0.385 to GBP0.87. The volatility for the share options was
69.25% and the fair-values of the options issued ranged from
GBP0.09 to GBP0.15. The expected life of the outstanding warrants
and options ranged from 0.74 to 2.00 years.
Share-based payments allocation of
charge 31 December 31 December
2021 2020
$ $
On issue of share options 262,739 210,924
On issue of warrants 446,301 331,701
On modification of warrants - 82,565
------------ ------------
Total charge 709,040 625,190
------------ ------------
Allocation:
Mining property 517,184 395,286
Administrative expenses 191,856 229,904
------------ ------------
709,040 625,190
------------ ------------
The share-based payment charge has been simultaneously credited
to retained deficit.
15 Events after the reporting date
Since the year end the Group has acquired the remaining 1.25%
royalty payable to Honolulu Copper Corporation.
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FR MZGZFNKZGZZM
(END) Dow Jones Newswires
March 28, 2022 02:00 ET (06:00 GMT)
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