Phoenix Copper fires chair, CFO over secret payments

Phoenix Copper (AIM: PXC;US-OTC: PXCLY) has dismissed its executive chairman and chief financial officer after an internal investigation uncovered undisclosed related-party payments and unauthorized transactions tied to fundraising activities.

The U.S.-focused copper developer said Monday that former executive chairman Marcus Edwards-Jones and CFO Richard Wilkins were removed after the board determined about $1.77 million had been paid between 2016 and 2025 to Lloyd Edwards-Jones, a corporate finance advisory firm owned by Edwards-Jones. 

Wilkins paid the money in connection with fundraising transactions without the knowledge or approval of the board and he shared in the proceeds, the company said. They qualified as related-party dealings under stock exchange rules, but were never disclosed or approved by independent directors or the company’s nominated adviser.

Last month, Phoenix suspended the executives who are cooperating with trying to recover the funds. 

Shares in Phoenix Copper, which has minimal operating revenue and remains in pre-production in Idaho with the Empire open-pit copper-gold-silver project, gained 12% on Monday afternoon in London to 1.2 pence apiece. The company has lost 59% of its value this year and has a market capitalization of £534 million. 

Other payments

The probe also uncovered an additional £610,000 (about US$815,000) in unauthorized payments. Some funds were transferred to an intermediary linked to bond financing without board approval, while others were made despite explicit instructions from directors not to proceed.

Independent non-executive director Catherine Evans has stepped in as interim chair and is working with CEO Ryan McDermott to strengthen governance and financial controls. Phoenix has also appointed an interim CFO to oversee completion of its 2025 audit.

Auditor Crowe UK has been informed of the findings. The company said it does not currently expect its historical financial statements to require restatement, aside from disclosing the payments as related-party transactions in its 2025 accounts.

Phoenix added that its working capital position remains tight. After reviewing cash flow and implementing cost reductions, the company said its existing cash balance should fund operations until the end of the second quarter of 2026.

The Empire project has a 2024 pre-feasibility study outlining an eight-year mine life producing a total of 40,424 tonnes copper, 40,161 oz. gold and 1.76 million oz. silver. The company also holds nearby exploration properties including the Navarre Creek gold project and the Redcastle cobalt property the historic Idaho copper belt.