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Phoenix Gold Nets $3M In Oversubscribed Raising

Phoenix Gold (ASX: PXG) has closed its recent share purchase plan oversubscribed with applications totalling A$3.096 million, 55% above the target of $2 million.

Given the strong investor interest in the company, Phoenix decided to accept all oversubscriptions in full, and has issued 10.3 million ordinary fully paid shares at $0.30 per share.

The share purchase plan followed a placement of 66.7 million ordinary shares at $0.30 each to raise $20 million.

The new funds will accelerate the planned drilling program over the next 12 to 15 months, with Phoenix having an interim target of 4 million ounces, and to also complete the Definitive Feasibility Study for Castle Hill - and other core projects.

Phoenix is already delivering impressive drilling results from the recently commenced $20 million drilling campaign starting at the Castle Hill project, with the program to cover 215,000 metres over the next 12 to 15 months.

A resource upgrade and maiden gold reserve is due in coming weeks from Castle Hill.

Phoenix has intersected the largest gram-metre intercept at Castle Hill being 94 metres at 2.6 grams per tonne (g/t) gold from 88 metres, supported by other intersections including 8 metres at 2.4g/t gold from 74 metres; and 5 metres at 2.2g/t gold from 142 metres.

Importantly, drilling demonstrates potential outside the current resource envelope, and remains open in all directions and at depth - with new assays to flow through early in the New Year.

Castle Hill currently hosts over one million gold ounces at less than 85 metres depth.

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