How Anax Metals’ $2.4M Gold Valley Placement Accelerates Pilbara Copper Ambitions

Strategic Capital Injection and Partnership

Anax Metals Limited (ASX, ANX) has taken a significant step forward in its development journey by completing a $2.4 million strategic placement with Gold Valley Pilbara Pty Ltd, an experienced mining group. The placement was priced at $0.011 per share, representing a notable 37.5% premium to the last traded price, signaling strong investor confidence in Anax’s growth strategy. Post-placement, Gold Valley is expected to hold approximately 19.9% of Anax’s issued capital, cementing its role as a key strategic partner.

This partnership extends beyond capital, with Gold Valley securing a Right of First Refusal to build, own, and operate the accommodation camp at the Whim Creek Mine. This arrangement aligns with Gold Valley’s broader vision of creating a unified development hub in the Pilbara, leveraging its proximity to its Balla Balla VTM Project and a joint venture with Deep Source Holdings to optimize infrastructure and capital efficiency.

Loan Funding and Convertible Notes Repayment

Complementing the placement, Anax secured a $3.5 million zero-interest loan from major shareholder Jetosea Pty Ltd. This loan was primarily used to repay $3.3 million in principal and interest on convertible notes previously issued to Mineral Development Partners (MDP). The repayment fully extinguishes all obligations to MDP, removing a layer of financial complexity and potential encumbrances from Anax’s balance sheet.

The loan agreement includes an option for conversion into a net smelter return royalty or issuance of options to Jetosea, both subject to shareholder approval. This flexibility provides Anax with strategic financial options as it advances its development plans.

Advancing the Whim Creek Copper Project

Funds raised from the placement will support an update to the Definitive Feasibility Study for the Whim Creek Project, expansion of Anax’s aggregate business, and due diligence for potential off-take and financing partners. The Whim Creek Project is uniquely positioned in the Pilbara, boasting fully permitted infrastructure for copper, zinc, and lead concentrate production, with near-term production expected from high-grade open-pit resources and potential underground operations.

Anax’s operational innovation is also evident in its new commercial agreement to repurpose waste rock into aggregate for civil construction, generating early cash flow ahead of full-scale mining. This initiative underscores the company’s commitment to resource efficiency and sustainable development.

Strategic Outlook and Growth Prospects

With Gold Valley’s expertise and financial backing, alongside Jetosea’s supportive loan facility, Anax is well-positioned to progress its Pilbara hub strategy. The company is actively exploring satellite ore bodies to feed into its regional processing infrastructure, aiming to build a scalable copper production platform in a region of growing demand for green metals.

While the company awaits shareholder approvals for certain loan conversion options and security arrangements, the current developments mark a clear step towards de-risking and advancing the Whim Creek Project’s development timeline.