Anax Metals has successfully raised $10 million through a two-tranche placement, strengthening its financial position ahead of critical funding and development milestones for the Whim Creek Copper Project.
- Placement raises approximately $10 million at $0.023 per share
- Funds to repay $3.5 million Jetosea loan and support project development
- Strong backing from institutional and strategic investors including Jetosea and Gold Valley
- Second tranche subject to shareholder approval at mid-May EGM
- Advances debt and off-take funding discussions for Whim Creek
Capital Raising Overview
Anax Metals Limited (ASX:ANX) has announced a successful capital raising effort, securing firm commitments to raise approximately $10 million through a two-tranche placement of new shares priced at 2.3 cents each. This move comes as the company positions itself to advance the development of its Whim Creek Copper Project, one of Australia's more advanced copper assets.
The placement attracted strong support from a mix of new and existing institutional, professional, and sophisticated investors, including strategic shareholders Jetosea Pty Ltd and Gold Valley, who together committed nearly $3 million. Notably, Deep Source Holdings Limited, a Hong Kong-listed entity with a market capitalisation around A$2.5 billion, also participated, underscoring growing confidence in Anax’s prospects.
Use of Proceeds and Financial Position
Proceeds from the placement will primarily be used to repay a $3.5 million loan from Jetosea, which upon repayment removes a 2.5% net smelter royalty over Anax’s interest in the Whim Creek joint venture. This repayment is a significant step in cleaning up the company’s capital structure ahead of finalising debt and off-take funding arrangements.
Beyond loan repayment, funds will support ongoing project development activities, accelerate exploration efforts aimed at expanding resources and extending mine life, and provide working capital. Following the placement and loan repayment, Anax expects to hold approximately $7 million in cash, bolstering its balance sheet as it approaches critical investment decisions.
Development Funding and Strategic Outlook
Anax has received several non-binding indicative term sheets from reputable debt and off-take providers offering up to A$57 million to fund its 80% interest in Whim Creek. These proposals are encouraging in terms of size, structure, and cost, reflecting strong market interest in the project’s potential.
The company continues to engage with potential partners to finalise these arrangements, which will be pivotal in moving Whim Creek towards production. The capital raising strengthens Anax’s negotiating position and financial flexibility as it seeks to secure these critical funding agreements.
Placement Structure and Next Steps
The placement is structured in two tranches: an unconditional first tranche raising just over $5.18 million, and a conditional second tranche raising approximately $4.81 million, which includes $1.06 million in commitments from Anax directors. The second tranche awaits shareholder approval at an Extraordinary General Meeting expected in mid-May 2026.
Lead managers Sternship Advisers and Bell Potter Securities Limited will receive options as part of their remuneration, subject to shareholder approval. The new shares will rank equally with existing shares, and the offer price represents no discount to the last traded price, signalling confidence in the company’s valuation.
Bottom Line?
With a strengthened balance sheet and growing investor support, Anax Metals is poised to advance Whim Creek towards a final investment decision and production.
Questions in the middle?
- Will shareholder approval for the second tranche be secured at the upcoming EGM?
- How will the final terms of debt and off-take agreements impact project economics?
- What exploration results might extend the mine life and enhance project value?