PNX Metals Limited (ASX: PNX), formerly known as Phoenix Copper Limited is an ASX listed base metals and precious metals mining company. The company is currently developing the Hayes Creek zinc-gold-silver project which is located on granted Mineral Leases which are wholly owned by PNX.
Details of Rights Issue
On 18th April 2019, the company announced that it is launching non-renounceable pro-rata rights issue on the basis of three new fully paid ordinary shares for every five existing shares. The issue will raise approximately $5.48 million (before cost) via the issues of ~ 913.23 million Shares (based on the undiluted share capital of PNX as at the close of trade on 15th April 2019).
The $0.006 issue price depicts a discount of ~ 8.4% to the VWAP for the last five trading days prior to 18th April 2019. It also depicts a 14.3% discount to the last traded price on 16th April 2019.
Underwriters of the Issue
The offer has been underwritten for the full amount of the Rights Issue by Major shareholder DELPHI Unternehmensberatung Aktiengesellschaft and Hartleys Limited which is also acting as a lead manager of the offer. Sochrastem SAS, company’s major shareholderm has also given the undertaking to apply for $850k shares under the Rights issue.
Sub-Underwriting Invitation Period
PNX will invite eligible investors to participate in the Offer through underwriter Hartleys by way of a sub-underwriting to participate in the capital raising. The invitation period will commence on 29th April 2019 and end on 8th May 2019.
Use of Funds
The proceeds from the rights issue will be directed towards the studies and activites to support the Definitive Feasibility Study (DFS) for the Hayes Creek Project. Some of the specific uses of funds towards the project are:
- Metallurgical testwork,
- Ongoing greenfield exploration activities,
- Environmental and government approvals,
- Project management, drilling and assays, technical studies,
- Project holding and management costs.
Hayes Creek Project
The Hayes Creek Project consists of the Iron Blow and Mt Bonnie zinc-gold-silver deposits and the Fountain Head gold prospect. The site is situated less than 3km away on Mineral Leases which are wholly owned by the company, within the Pine Creek region. DFS for the project was re-commenced due to an increased interest of investors in the project. Finalisation of DFS which requires regulatory approvals is expected to take at least until the first quarter of 2020.
As per the recently released December quarter results, the company reported A$ 1.24 million operating cash outflow, A$20K investing cash outflow and A$3.435 million financing cash inflow. The cash and cash equivalents stood at A$1.6 million at the end of the quarter.
The market capitalisation of the company is A$10.65 million. The stock last traded at A$0.007 on 18 April with 1.52 billion outstanding shares. In the last six months, the stock has delivered a negative return of 22.2% while YTD return also stands at 22.2%. As per ASX, company’s EPS stands at -A$0.001.
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