Phoenix Copper acquires part of royalty for Empire mine in Idaho

Wed, 27th Oct 2021

Mining group Phoenix Copper said it had agreed to acquire part of a royalty related to the Empire Mine in Idaho. Phoenix had agreed with Honolulu Copper and Mackay to acquire part of the 2.5% royalty payable to each of them, and the Honolulu mining claims. Phoenix had acquired 1.25% of the royalty payable to Honolulu, including Honolulu's underlying patented and unpatented mining claims, and 1% of the royalty payable to Mackay, for $1.3 million. Of that sum, $550,000 had been paid, with the remaining $750,000payable in three instalments of $250,000 each, due on 31 December 2021, 2022, and 2023. Konnex Resources, the company's Idaho subsidiary and operator of Empire, would pay a 1.25% royalty to Honolulu plus a 1.25% royalty to Phoenix, or a 1.5% royalty to Mackay plus a 1% royalty to Phoenix, based on the order in which the respective claim blocks were mined. 'Our preliminary economic model for the Empire open pit mine, which is based on a $3.60 copper price, forecasts gross revenue of $836 million over an initial 10-year project life,' chief financial officer Richard Wilkins said. 'The royalty now payable to Phoenix should therefore represent significant additional revenue to Phoenix over the same period and is intended to contribute additional funds to the corporate dividend policy which we plan to adopt for the benefit of our shareholders.' Story provided by StockMarketWire.com

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