Phoenix Copper investor NIU seeks to requisition EGM

(Alliance News) - Phoenix Copper Ltd on Friday reported that shareholder NIU Invest SE is seeking ...

Alliance News 10 April, 2026 | 5:45PM
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(Alliance News) - Phoenix Copper Ltd on Friday reported that shareholder NIU Invest SE is seeking to requisition an extraordinary general meeting, with proposals including an independent investigation into past unauthorised payments.

Phoenix noted that NIU in 2024 "invested an initial USD5 million, a drawdown of the agreed USD80 million fully subscribed corporate copper bonds, the net proceeds of which were to be used to fully fund the construction of the company's Empire open pit mine in Idaho, USA for the production of copper, gold and silver, and for general working capital."

It issued NIU with 33.9 million shares plus additional warrants in lieu of an arrangement fee, and NIU now has a roughly 11.7% stake.

The US-focused base and precious metals producer and explorer previously announced, on March 9, the dismissal of then-executive chair Marcus Edwards-Jones and chief financial officer Richard Wilkins, concluding an investigation.

The probe confirmed that certain historic payments, paid in respect of previous fundraising transactions, totalling around USD1.7 million, were made between 2016 and 2025 to Lloyd Edwards-Jones SAS, the company's former corporate finance adviser and a company of which Edwards-Jones was an owner and director.

These payments were made by Wilkins to Lloyd Edwards-Jones SAS without board knowledge or approval, although under AIM Rule 13 they should have been disclosed, and Wilkins shared in the proceeds of these payments, the firm said.

In addition, the investigation uncovered unauthorised payments, totalling GBP610,000, some of which were made without board knowledge or approval to an intermediary in connection with bond financing, while certain other payments were made expressly against the direction of the board, Phoenix added.

It said it was seeking to recoup financial losses suffered as a result of the payments.

On Friday, Phoenix said NIU's requisition request proposed firstly, that an NIU representative be appointed a director of Phoenix, although it did not name a candidate.

Secondly, NIU is calling for an "independent investigation by external advisers" into Phoenix's investigation and the actions take by the former executives.

NIU said it seeks "an explanation of (i) how the unauthorised payments disclosed in the company's announcements dated February 9 and March 9 were permitted to occur, including the control failures that made them possible, and (ii) the governance, approval and internal control measures the board has adopted, or proposes to adopt, to prevent any recurrence, in each case subject to legal privilege, confidentiality obligations and applicable law."

It also wants shareholders to request an update on the use of proceeds of Phoenix's bond financing, its current liquidity position, and its near-term funding plans.

"The company has been working with its advisers to review the content and validity of the requisition and deem it to be validly served," Phoenix Copper said.

"In the meantime, shareholders are urged to take no action," it added.

Phoenix Copper shares closed flat at 1.10 pence on Friday in London.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Phoenix Copper Ltd Registered Shs 1.10 GBX 0.00 -

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