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Phoenix Gold Substantial Shareholder Geologic Resource Fund Increases Stake To 10.1%

Phoenix Gold (ASX:PXG) substantial shareholder Geologic Resource Fund and its related funds have increased its stake in the company to 10.1% from 8.66%.

Geologic Resource Fund subscribed for 11 million shares for a total of $1.1 million under a share placement that was completed on 9th February 2015.

In July 2014, it subscribed for 3.1 million shares totalling $403,000 under a placement for shortfall shares from the non-renounceable entitlement offer that closed on 17th April 2014.

This added to the 2.3 million shares it received in early April 2014 for conversion of rights.

Geologic Resource Fund and its related funds now have a total of 42,433,333 shares in Phoenix Gold.

Earlier this month, the company raised A$5 million through an oversubscribed placement to complete purchase of the St Ives heap leach processing facility and its relocation to the Castle Hill Project.

In July 2014, the company had agreed to acquire the 2.3 million tonne per annum St Ives heap leach processing plant located near Kambalda, 70 kilometres south of Kalgoorlie in Western Australia from St Ives Gold Mines Pty Ltd for $2 million.

This provides the company with the ability to treat stockpiled lower grade ore mined from Castle Hill and surrounding projects, giving it an important additional source of cash flow over many years.

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