Anax Metals Raises $3.3M, Advances Pilbara Project Amid Arbitration Exit
Anax Metals has raised $3.3 million through convertible notes to push forward its Whim Creek copper-zinc project in Western Australia, while resolving a recent arbitration with its cornerstone investor Mineral Development Partners.
- Raised $3.3 million via convertible notes from Mineral Development Partners
- Progressing development of Whim Creek concentrator and heap leach facilities
- Received permits to produce road base from waste rock for near-term revenue
- Arbitration with investor over marketing rights withdrawn without default
- Cash reserves stand at $2.93 million with ongoing exploration and corporate costs
Funding and Strategic Investment
Anax Metals Limited (ASX, ANX) has taken a significant step in advancing its flagship Whim Creek copper-zinc project in Western Australia's Pilbara region by securing $3.3 million through the issuance of redeemable convertible notes to cornerstone investor Mineral Development Partners (MDP). This funding forms part of a broader investment package that could see MDP acquire up to a 19.99% stake in Anax and an 81.1% interest in Whim Creek Metals (WCM), facilitating the development of a new 400,000 tonnes per annum concentrator and refurbishment of the heap leach facility.
Project Development and Operational Progress
The Whim Creek project, located approximately 115km southwest of Port Hedland, is advancing with full permits in place for mining, construction, and in-pit tailings disposal. The Definitive Feasibility Study (DFS) completed in 2023 confirmed robust economics for processing polymetallic sulphide ores from multiple deposits. Anax also received regulatory approvals to repurpose 500,000 tonnes per annum of waste rock into road base and aggregate materials, aiming to generate near-term revenue streams alongside its core copper and zinc production plans.
Resolution of Arbitration and Investor Relations
Earlier in the quarter, Anax initiated arbitration proceedings against MDP over a failure to agree on exclusive marketing rights for commodities produced from the project. However, the company has since withdrawn the arbitration on a without-prejudice basis, confirming no default occurred on the convertible notes. Both parties agreed that no conversion or redemption of the notes will occur until one day before maturity in November 2026, maintaining stability in the investor relationship during this critical development phase.
Financial Position and Outlook
As of 30 June 2025, Anax held $2.93 million in available cash, with ongoing expenditures focused on exploration, site maintenance, and corporate costs. The company acknowledges a cash runway of less than two quarters but remains confident in its ability to raise additional capital as needed. The board continues to monitor expenditures closely and is actively pursuing commercial agreements and partnerships to support the project's growth and the establishment of a regional Pilbara Base Metal Alliance.
Looking Ahead
Anax’s strategy to consolidate base metals production in the Pilbara through the Whim Creek project and potential processing hub positions it well to capitalize on regional synergies. The company’s focus on operational efficiencies, expanded ore feed sources, and near-term revenue from aggregate sales could enhance its financial resilience as it progresses toward commercial production.
Bottom Line?
Anax Metals’ recent funding and arbitration resolution clear the path for advancing Whim Creek, but upcoming approvals and capital raises will be critical to sustaining momentum.
Questions in the middle?
- Will Anax secure shareholder and regulatory approvals required for convertible note conversion?
- How soon can the company commercialize road base production to bolster near-term cash flow?
- What are the prospects and timelines for expanding the Pilbara Processing Hub with regional partners?
