The company’s remaining non-cash asset is the Gryphon reserve, which is comprised of the property leases controlled through the acquisition of Pact Resources and the Petersburg sublease. The company is currently in advanced stages of negotiations and due diligence regarding the potential sale of this reserve.
Phoenix, with the assistance of its financial advisor Cormark Securities, will continue to consider all alternatives to maximize shareholder value. Although multiple parties have submitted expressions of interest on Gryphon, there can be no assurance at this time that a transaction will be consummated, the company said.
David Wiley, President and CEO of Phoenix, said: “The sale of the Panama South lease is a successful step in our initiative to maximize the value of our coal properties.
“The leased property was part of the later stages of the Phoenix’s mining plans and the transaction represented substantial value today for an asset whose value would otherwise not have been realized by the company. In addition, the $10m strengthens our solid balance sheet and puts us in excellent position to capitalize on new opportunities in the natural resources and mining sector.”
