Phoenix Copper (AIM: PXC) 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 US-focused copper miner said Monday that former executive chairman Marcus Edwards-Jones and CFO Richard Wilkins were removed after the board determined about $1.765 million had been paid between 2016 and 2025 to Lloyd Edwards-Jones, a corporate finance advisory firm owned by Edwards-Jones.
The company said the payments were made by Wilkins in connection with fundraising transactions without the knowledge or approval of the board, and Wilkins shared in the proceeds.
Phoenix said the transactions qualified as related-party dealings under AIM rules but were never disclosed or approved by independent directors or the company’s nominated adviser.
The probe also uncovered an additional £610,000 (about $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.
Both former executives have indicated they are willing to cooperate with efforts to recover the funds, the company said.
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.