Anax raises $3m to accelerate exploration and scoping studies across Pilbara assets
Funds will advance resource extensional drilling at Evelyn deposit
Placement will also fund scoping study with Develop Global at Whim Creek
Company also made equity agreement with Topdrill for part payment of drilling services
Special Report: Anax Metals raises $3m via a placement to advance its Whim Creek copper-zinc project in WA.
The proceeds of the placement will be used for resource extensional drilling at the Evelyn deposit at Whim Creek, along with conducting technical studies to assess the treatment of GreenTech Metals (ASX:GRE) base metal assets at Whim Creek as part of the recently formed Pilbara Base Metal Alliance.
The funds will also be used to accelerate the scoping study in collaboration with Develop Global’s (ASX:DVP) to evaluate the treatment of high-grade oxide/traditional ores from DVP’s Sulphur Springs project at the fully permitted Whim Creek.
The companies recently reported recoveries of up to 95% copper and 99% zinc at the project.
Consolidating Pilbara copper assets
“The company is pleased to have had strong support for this raise including from our major shareholder,” Anax Metals (ASX:ANX) managing director Geoff Laing said.
“We are in the enviable position of having a robust permitted copper project in the Pilbara with fantastic growth potential.
“We continue to position ourselves as the key player for consolidation of Pilbara copper assets through the development of our copper processing hub.”
The company also intends to use the funds raised from the placement to advance off-take and project finance discussions towards Financial Investment Decision for the construction and development of Whim Creek, along with working capital requirements.
Topdrill equity payment
In addition to the Placement, Anax has entered into an agreement with drilling services company Topdrill, where the company may issue Topdrill fully paid ordinary shares in lieu of a part cash payment for drilling services rendered.
The company expects that a drill rig will be mobilised by Topdrill to Whim Creek in the coming months.
The maximum number of Contractor Shares that Anax may issue is up to 60% of the total invoice value for drilling services, and up to a maximum invoice value of $1 million.
“We are looking forward to working with Topdrill to deliver the planned program at our high-grade Evelyn resource where previous drilling intersected 13 m at 4.46% Cu, 3.10% Zn, 45 g/t Ag and 1.61 g/t Au from 204m,” Laing said.
The contractor shares will be issued at a deemed issue price being the five-day volume weighted average price of the shares of Anax for the five trading days immediately preceding invoice date.
This article was developed in collaboration with Anax Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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