Funding Uncertainty Looms as Anax Withdraws Arbitration with Key Investor

Project Development Momentum

Anax Metals Limited (ASX, ANX) continues to push forward with its flagship Whim Creek Copper-Zinc Joint Venture project in Western Australia's Pilbara region. The company has been diligently advancing technical and environmental workstreams, updating feasibility studies, and securing regulatory approvals to support a Final Investment Decision. The project, which includes a planned 400,000 tonnes per annum concentrator, remains fully permitted for mining, construction, and in-pit tailings disposal.

Alongside the core sulphide concentrate production, Anax plans to leverage an existing heap leach facility to produce copper cathode and zinc sulphate, with heap leaching anticipated to commence in the second year of operations. This approach, supported by encouraging bench-scale test results showing high copper and zinc extraction rates, could enhance project economics with relatively modest refurbishment costs funded from operational cash flow.

Expanding Exploration and Land Access

The company has also advanced a new tenement application adjacent to the existing Whim Creek project, covering 207 square kilometers. Negotiations with landholders and native title holders are underway ahead of a planned exploration campaign in the first half of 2026. Meanwhile, Anax regained 100% ownership of the Mt Short tenement following the withdrawal of its joint venture partner, with plans to evaluate divestment or farm-out options.

Innovative Waste Rock Utilization

In a strategic move to monetise existing resources, Anax secured approvals to repurpose up to 500,000 tonnes per annum of waste rock from the Whim Creek site into road base and aggregate materials. This initiative aligns with the company’s regional processing hub strategy and benefits from proximity to the Northwest Coastal Highway.

Following successful test work confirming the material meets Main Roads Western Australia specifications, Anax signed a fixed-term agreement with Castle Civil Pty Ltd to process up to 50,000 tonnes of barren aggregate for use in civil construction. This deal marks a tangible step towards commercialising waste rock and generating early cash flow ahead of full-scale mining operations.

Funding and Financial Position

On the financing front, Anax issued $3.3 million in convertible notes to Mineral Development Partners (MDP) during the quarter, part of a broader $103 million investment package aimed at securing a significant stake in the company and its Whim Creek Metals subsidiary. However, a dispute over exclusive marketing rights led to arbitration proceedings, which were subsequently withdrawn by mutual agreement, leaving the convertible notes on issue but conversion or redemption deferred until maturity in November 2026.

The company is actively engaging with multiple parties to finalise funding arrangements for both project development and satellite ore acquisitions. At quarter-end, Anax held $1.4 million in cash and had access to total financing facilities of $6.4 million, including secured loans. Exploration and feasibility expenditures for the quarter amounted to approximately $687,000, primarily focused on Whim Creek.

Outlook

While Anax has yet to commence production activities, the groundwork laid this quarter positions the company well for advancing towards operational status. The combination of technical progress, strategic land acquisition, innovative waste rock monetisation, and ongoing funding discussions underscores a multifaceted approach to unlocking value from the Pilbara base metals hub.