Key Takeaways

  • London-based mining company Phoenix Copper Limited announced on Monday that it has dismissed Executive Chairman Marcus Edwards-Jones and Chief Financial Officer Richard Wilkins due to misconduct involving financial transactions.
  • According to the company announcement, an internal investigation confirmed that between 2016 and 2025, approximately $1.8 million was paid to Lloyd Edwards-Jones S.A.S., a corporate finance advisory firm owned by Edwards-Jones, without the knowledge or approval of Phoenix's board of directors; Wilkins also shared in the related benefits.
  • Following the investigation, the board decided to terminate the roles of Edwards-Jones and Wilkins with "immediate effect." The company had previously stated that it suspended both individuals during the investigation and implemented "temporary financial oversight arrangements."

Investigation Details

Phoenix focuses on exploring and producing base and precious metals in the United States, with its flagship asset being the Empire Mine in Idaho, in which the company holds an 80% interest. The company is listed on London's Alternative Investment Market (AIM), which primarily serves smaller or growth-stage companies.

According to Phoenix, the payments to Lloyd Edwards-Jones constituted a "related party transaction" under AIM Rule 13 and therefore should have been disclosed to other board members in advance.

The investigation also uncovered unauthorized payments totaling approximately £610,000 (about $818,000). The announcement stated that some of these payments were made to "an intermediary connected with bond financing" without the board's knowledge or approval; other payments were made "in clear defiance of board instructions."

Phoenix stated that it is seeking to recover the unauthorized payments with the cooperation of Edwards-Jones and Wilkins.

Next Steps

Following the investigation, Phoenix's board appointed Catherine Evans, independent non-executive director and chair of the audit committee, as interim non-executive chair.

The company said further updates regarding the appointment of a permanent chair "will be provided in due course."

Meanwhile, Evans is working closely with Chief Executive Officer Ryan McDermott, advisory board members, and external advisors to "mitigate any potential impact on the company, strengthen governance processes and financial controls, and ensure that relationships with investors, brokers, suppliers, and all other counterparties and stakeholders remain uninterrupted."

The previously announced interim chief financial officer will assist in "ensuring financial continuity and managing the completion of the audit process for the year ending December 31, 2025." Phoenix did not immediately respond to requests for further details regarding the interim appointments.

At the time of writing, Edwards-Jones and Wilkins could not be immediately reached for comment.