The $9 million investment in Phoenix Gold is significant in any market, more so in the current capital constrained one from an established gold producer. It is highly value accretive to Phoenix and also provides a large shareholding base for Evolution.
At least 60% of the proceeds will go towards an accelerated drilling program over the Zuleika shear, which has delivered new high grade open cut and underground discoveries.
With Evolution providing technical, strategic and financing input where appropriate, this could add another revenue stream for Phoenix in addition to its Norton Gold Fields joint venture and its Heap Leach project.
Phoenix is well funded with close to A$7.5 million in cash, deposits and bullion on hand.
PXG Price at posting:
9.0¢ Sentiment: Buy Disclosure: Held
