Phoenix Gold (ASX:PXG) has received a notice of initial substantial shareholding from Evolution Mining (ASX:EVN) with a 9.36% interest.
This follows the completion of the first tranche of 44 million shares priced at $0.075 each as part of a strategic investment and partnership.
Evolution’s stake in Phoenix will increase to 19.9% once PXG shareholders approve the second tranche placement of about 61.9 million shares priced at $0.092 each.
The combined placement enables accelerated exploration of the company’s highly prospective Zuleika shear gold projects in Western Australia.
This is expected to be focused on assets that are close to the Frog’s Leg and White Foil projects and the new 1.5mtpa Mungari mill that were the subject of a recent merger agreement between Evolution and La Mancha Australia Pty Ltd.
Phoenix and Evolution will develop the exploration program in the June Quarter with exploration drilling expected to commence in the September Quarter.
