Phoenix Copper (LSE:PXC) has removed executive chairman Marcus Edwards-Jones and chief financial officer Richard Wilkins following an internal investigation that uncovered undisclosed related-party transactions and unauthorised payments.
The inquiry found that approximately US$1.77m in payments were made between 2016 and 2025 to Lloyd Edwards-Jones S.A.S., a company owned and directed by Edwards-Jones, without the knowledge or approval of the board. The investigation also concluded that Wilkins shared in the proceeds. According to the company, these payments should have been disclosed as related-party transactions under market regulations but were not.
In addition, the investigation identified about £0.61m in further unauthorised payments connected to bond financing arrangements, some of which were made despite explicit instructions from the board not to proceed. Phoenix Copper said it intends to pursue recovery of the funds involved, and both former executives have indicated their willingness to cooperate with the process.
To stabilise governance following the findings, independent non-executive director and audit committee chair Catherine Evans has been appointed interim non-executive chair. She is working alongside the chief executive, interim CFO, advisory board and external advisers to strengthen oversight and maintain relationships with stakeholders. The company is also outsourcing its company secretarial services and has informed its auditor, Crowe UK LLP, of the historical transactions. At present, management expects additional related-party disclosures to be required rather than restatements of previous financial statements.
The governance developments come as the company continues to face funding pressures. Phoenix Copper said its current cash resources are expected to cover obligations only until the end of the second quarter of 2026 unless new financing is secured. The company is in discussions to amend a short-term loan facility with Riverfort Global Opportunities and renegotiate terms with Indigo Capital, and plans to update shareholders once these negotiations are concluded.
The group’s outlook remains constrained by weak financial performance, including the absence of revenue, widening losses and increasing cash burn, which heightens the risk of further funding requirements and potential shareholder dilution. Technical indicators are mixed but generally weak, with the share price trading below key moving averages, while valuation metrics remain limited due to negative earnings and the lack of a dividend.
More about Phoenix Copper
Phoenix Copper is an AIM-listed exploration and emerging mining company focused on base and precious metals projects in the United States. Its flagship asset is the Empire Mine in Idaho’s historic Alder Creek mining district, where the company holds an 80% interest and has significantly expanded the open-pit copper, gold and silver resource through drilling since 2017.
The Empire underground mine beneath the proposed open pit has a long history of high-grade production including copper, gold, silver, zinc and tungsten, and the company published its first mineral reserve statement for the open-pit project in 2024. Phoenix Copper also controls several additional historic mines in the district, the Red Star silver-lead discovery, the Navarre Creek gold exploration project, and two cobalt properties within the Idaho Cobalt Belt. The company is listed on AIM in London and also trades on the OTCQX market in New York.
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