Anax Metals secures $103m cornerstone investment to fast-track Whim Creek restart
Anax Metals (ASX: ANX) has received a $103 million strategic investment and funding package from Mineral Development Partners (MDP) that will allow MDP to earn up to 19.99% equity in Anax and up to an 81.1% interest in the Whim Creek copper project in Western Australia.
MDP is a global consortium that focuses on unlocking value from high-potential mineral assets worldwide, advancing metals and mining projects from feasibility through to production.
Its investment in Whim Creek Metals — a wholly owned subsidiary of Anax and majority interest holder in the Whim Creek joint venture (JV) — will see MDP take on the role of development partner and help lead the project to the operation stage.
Investment breakdown
MDP’s investment includes a $3.3m convertible note priced at $0.015, representing a 200% premium to the current Anax share price, a $10m injection into Whim Creek Metals for 30% equity, up to $50m to develop the Whim Creek project for a further 42% equity in Whim Creek Metals and as much as $40m in additional funding for activities aimed at making Whim Creek a base metals processing hub for the Pilbara.
Each tranche will be subject to Foreign Investment Review Board approval, satisfactory due diligence and definitive agreements.
The total investment size corresponds with the capital estimate for a restart of the Whim Creek project as defined in a definitive feasibility study (DFS) published in April 2023.
Planned restart
Anax managing director Geoff Laing welcomed the MDP investment ahead of the planned restart at Whim Creek.
“We are delighted that MDP has chosen to invest in Anax and underpin the development costs associated with a restart of production at Whim Creek,” he said.
“This investment is the start of a transformational phase for our company and we look forward to leveraging off the unique combination of a fully permitted copper project with substantial existing infrastructure, a robust DFS and an ideal location to become a profitable and sustainable business.”
JV development
Anax (through Whim Creek Metals) owns 80% of the Whim Creek JV, with Develop Global holding the remaining 20%.
The JV aims to develop a new 400,000 tonnes per annum concentrator and a refurbished heap leach facility capable of treating oxide, transitional and supergene ore.
MDP’s investment and funding package will facilitate the project’s development, plus delivery of the processing hub and the opportunity to commence the consolidation of assets within the region.
At completion of the investment, Anax will have approximately $4m cash on hand and will continue to pursue near-term revenue generation through the sale of aggregates and road base produced from existing waste rock at Whim Creek.