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Phoenix Gold Completes Tenement Acquisition In The Eastern Goldfields

Phoenix Gold (ASX: PXG) has now completed the acquisition of 100% of the Kintore Tenement P16/2577 in the Eastern Goldfields region of Western Australia.

Phoenix agreed to purchase the tenement for a cash payment of $30,000, and 100,000 fully paid shares ordinary shares at a deemed price of $0.30 each.

The acquisition addes to Phoenix's already substantial tenement holding, with the company currently undertaking a $19.5 million (217,000 metre) accelerated drilling program targeting an interim resource exploration target of 4 million ounces by December 2013.

Phoenix had $20 million cash at the end of March 2013, with the company fully-funded beyond an investment decision in December 2013.

Cash-flow generation

Earlier in the month Phoenix entered a deal to boost near term cash flows with the monetisation of the non-core Blue Funnel Gold Mine asset in Western Australia.

Blue Funnel joins Catherwood as the first two small scale mines to be developed by Phoenix to generate cash flow, with Blue Funnel delivering some compelling metrics.

Stage 1 of Blue Funnel provides near term total net cash flow of over A$3 million, based on a gold price of A$1,350/oz.

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