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Phoenix Gold Adds Geologic Resource Fund As Substantial Shareholder

Phoenix Gold (ASX: PXG) has received a notice of initial substantial shareholder from Geologic Resource Fund and related funds, which now holds a 8.66% interest in the company.

Geologic Resource Fund was allocated 19 million shares under the company's recently completed placement of 60 million shares priced at $0.13 each to raise $7.8 million.

This increased Geologic's stake in Phoenix to 26 million shares.

Funds from the placement will be used for development of its Castle Hill project in Western Australia.

This enables the commencement of a staged development plan, with grade control and mine extension drilling having commenced on the development projects.

Phoenix is eyeing near-term cash flows, with third party million negotiations advancing - with an agreement expected early in the June quarter 2014.

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