Phoenix Copper has raised $3.12 million and is advancing an updated Pre-Feasibility Study for its Empire Mine in Idaho, with substantially higher copper, gold and silver prices creating the potential for improved project economics.
The U.S.-focused base and precious metals company completed the fundraise after the end of the first half, generating approximately $2.6 million after expenses.
The financing introduced additional institutional investors to Phoenix’s shareholder base and allowed the company to continue advancing the Empire project.
Phoenix also repaid its short-term convertible loan note in full on August 4.
Cost reductions and the sale of non-core assets have extended the company’s cash runway into the fourth quarter of 2026.
The company’s principal focus is the Empire Mine near Mackay, Idaho, where Phoenix holds an 80% interest.
Empire is a polymetallic project containing copper, gold and silver, with additional exploration opportunities surrounding the proposed open-pit operation.
Phoenix has commissioned Hardrock Consulting to update the project’s 2024 Pre-Feasibility Study.
The update is particularly significant because commodity prices have risen considerably from the assumptions used in the original study.
The 2024 PFS used prices of $4.45 per pound for copper, $2,325 per ounce for gold and $27.25 per ounce for silver.
As of June 30, 2026, Phoenix cited copper at $6.33 per pound, gold at $4,348 per ounce and silver at $68.11 per ounce.
Management believes that if commodity prices remain near those levels as Empire moves toward production, project cash generation could improve substantially from the original PFS assumptions.
The existing Empire open-pit reserve includes approximately 10.1 million tonnes of Proven and Probable reserves.
Those reserves contain approximately 109.5 million pounds of copper, 104,000 ounces of gold and 4.65 million ounces of silver.
The estimate is based on information from 485 drill holes along with geological modeling, metallurgical testing, geotechnical evaluation and mine design.
The 2024 PFS projected life-of-mine production of 40,424 tonnes of copper, 40,161 ounces of gold and 1.76 million ounces of silver.
It estimated approximately $153 million of pre-tax cumulative net free cash flow over an eight-year mine life.
Phoenix said that figure increases to more than $230 million using current metal prices.
The original PFS also estimated a pre-tax net present value at a 7.5% discount rate of $87.86 million and a pre-tax internal rate of return of 46.4%.
Initial capital was estimated at approximately $62.6 million, with a pre-tax payback period of roughly 1.4 years.
Hardrock’s update is expected to incorporate the stronger commodity environment into a refreshed economic assessment.
Phoenix is designing Empire around a crush-grind-flotation-tank leach-cementation processing circuit capable of recovering copper, gold and silver.
The processing plant is expected to be located on Phoenix’s patented mining claims close to the open pit.
That proximity could reduce haulage requirements and allow the company to use a smaller mining fleet, potentially lowering both capital and operating costs.
The proposed mill would produce two saleable products: a copper-gold-silver concentrate and a cement copper stream.
Phoenix is also evaluating the higher-grade sulphide system beneath the proposed open pit.
Previous drilling intersected an interval grading 8.38% copper, 1.31 grams per tonne of gold and 120 grams per tonne of silver.
Historic mining beneath Empire also encountered high-grade copper mineralization, providing an additional longer-term exploration opportunity beyond the initial open-pit development.
The company’s broader land position around Empire spans approximately 8,434 acres and includes additional exploration targets such as Red Star, Horseshoe, Whiteknob, Windy Devil and Navarre Creek.
Phoenix also controls Redcastle and Bighorn within the Idaho Cobalt Belt.
During the first half, Phoenix reported net assets of $38.21 million and increased investment in Empire and its other mining assets to $45.84 million from $44.27 million a year earlier.
The company reported a first-half loss of $1.21 million compared with $760,000 a year earlier, reflecting its status as a development-stage mining company that has not yet begun commercial production.
Management’s immediate priority is securing the additional financing required to move Empire from the updated feasibility work through detailed engineering, permitting, construction and production.
With higher metal prices, an intact mineral reserve, a refreshed investor base and the elimination of short-term convertible debt, Phoenix believes the project is entering its next stage with a potentially stronger economic profile.
KEY QUOTES:
“The Fundraise has enabled us to continue moving the Empire project forward, specifically by updating the Pre-Feasibility Study published in September 2024. The updated numbers are expected to dramatically increase the economic attractiveness of the project, due to the improvement in commodity prices.”
Catherine Evans, Interim Chair of Phoenix Copper
“Our path to production is straightforward, provided we obtain the financing we need: funding, detailed engineering, permitting, construction, production.”
“The Phoenix team is singularly focused on progressing the Empire project through final engineering and permitting, and ultimately into production. The demand for metals on a global scale continues to be strong, particularly from domestic sources in mining friendly jurisdictions like Idaho.”
Ryan McDermott, CEO of Phoenix Copper
