Anax Metals Limited (ASX:ANX) announced that they have executed a binding agreement with Mineral Development Partners Pte Ltd (MDP), under which MDP will invest up to A$103M in the company, earning up to a 19.99% interest in Anax and up to an 81.1% interest in Whim Creek Metals Pty Ltd (WCM), which is a wholly-owned subsidiary of Anax.
With this agreement, MDP will be working with other leaders in mining development and operation to conduct due diligence and help to bring the Whim Creek Project into production.
Under this agreement, MDP has agreed to an investment package which includes a A$3.3M convertible note with a conversion price of A$0.015 (at a 200% premium to the current share price), which is convertible into shares subject to FIRB approval, satisfactory due diligence, and definitive agreements.
The agreement also includes a A$10M investment (subject to FIRB approval, satisfactory due diligence, and definitive agreements) in WCM for a 30% equity interest in WCM. It includes up to A$50M investment (subject to FIRB approval, satisfactory due diligence, and definitive agreements) in WCM for an additional 42% equity interest in WCM, to develop the Whim Creek Project. The total pre-production capital cost estimate for this is at A$72M. Finally, the agreement also commits MDP to make available up to A$40M in additional funding (subject to FIRB approval, satisfactory due diligence, and definitive agreements) for activities aimed at making Whim Creek a base metal processing hub for the Pilbara.
The total investment size corresponds with the current capital estimates for a restart of Whim Creek, as defined in the project DFS.
On this agreement, Anax’s Managing Director, Geoff Laing, commented: “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, and we look forward to working with them as our partner in the Pilbara copper and base metal business. This investment by MDP is the start of a transformational phase for our company as we move towards establishing Whim Creek as a Pilbara base metals hub. We look forward to leveraging off the unique combination of a fully permitted copper project in the Pilbara, with substantial existing infrastructure, a robust DFS and ideal location to become a profitable and sustainable base metal business.”
To find out more, please visit https://anaxmetals.com.au/
To read more articles like this, please visit www.theassay.com/news
