- Phoenix Copper Limited
- 09 March 2026 13:24:25
Source: Sharecast
The AIM-traded US-focussed mining company said its board had completed an investigation into the conduct of executive chairman Marcus Edwards-Jones and chief financial officer Richard Wilkins, announced in February.
Following the investigation and associated disciplinary processes, the board resolved to dismiss both executives and terminate their service agreements with immediate effect.
The company said its investigation found that historic payments totalling about $1.765m were made between 2016 and 2025 to Lloyd Edwards-Jones SAS, a company owned and directed by Edwards-Jones that had previously acted as Phoenix’s corporate finance adviser.
It said the payments, linked to earlier fundraising transactions, were made by Wilkins without the knowledge or approval of the board, and Wilkins shared in the proceeds.
Phoenix said the payments constituted related party transactions under AIM rule 13 and should have been disclosed at the time.
However, the company said no consultations were held with the independent directors or its nominated adviser when the payments were made.
The investigation also identified additional unauthorised payments totalling about £0.61m, some of which were made without board knowledge or approval to an intermediary connected with bond financing, while others were made despite explicit board direction not to proceed.
The company said it was seeking to recover the financial losses associated with both the related party transactions and the additional unauthorised payments.
Edwards-Jones and Wilkins had indicated they were willing to work with the company in that respect, Phoenix said.
Following the investigation, independent non-executive director and audit committee chair Catherine Evans was appointed interim non-executive chair with immediate effect.
Evans would work alongside chief executive Ryan McDermott, the advisory board and external advisers to strengthen governance procedures and financial controls while maintaining relationships with investors, suppliers and other stakeholders.
Phoenix said it had also put interim financial oversight arrangements in place through the appointment of an interim chief financial officer to ensure continuity and oversee completion of the audit for the year ended 31 December 2025.
The company’s auditor, Crowe UK, had been informed of the historic related party transactions.
Phoenix said it did not currently believe that previously published financial statements would need to be restated, although the payments would be disclosed as related party transactions in its 2025 financial statements.
Separately, Phoenix said it was continuing to assess both short-term and longer-term funding options as its working capital position remained constrained.
Following a review of cash flow and cost-cutting measures, the company said its existing cash balances should provide sufficient working capital to meet obligations until the end of the second quarter of 2026 if no additional funding was secured.
Discussions were ongoing with Riverfort Global Opportunities regarding the terms of a short-term loan facility, while the company said it was also negotiating with Indigo Capital to amend certain terms of an agreement announced in December.
Phoenix said it would update shareholders once those discussions concluded and when further clarity on its funding strategy was available.
At 1305 GMT, shares in Phoenix Copper were up 11.63% at 1.2p.
Reporting by Josh White for Sharecast.com.