Anax Metals (ASX: ANX) has secured a substantial $103 million strategic investment and funding package from Mineral Development Partners (MDP). This investment will allow MDP to acquire up to 19.99% equity in Anax and a controlling 81.1% interest in the Whim Creek copper project, located in Western Australia. MDP, a global consortium specializing in developing mineral assets, will become the development partner for the Whim Creek project, guiding it towards operational status.
The investment is structured in several tranches, including a $3.3 million convertible note, a $10 million injection into Whim Creek Metals (a subsidiary of Anax) for 30% equity, up to $50 million for project development securing a further 42% equity, and an additional $40 million contingent on establishing Whim Creek as a base metals processing hub. This funding aligns with the capital estimates outlined in the definitive feasibility study (DFS) published in April 2023. Anax intends to use the funds to develop a new 400,000 tonnes per annum concentrator and refurbish the existing heap leach facility.
Anax Managing Director Geoff Laing hailed the investment as a “transformational phase” for the company, emphasizing the project’s existing infrastructure, robust DFS, and strategic location. With the investment, Anax will have approximately $4 million in cash reserves and will continue generating revenue through the sale of aggregates and road base. The Whim Creek JV, of which Anax owns 80% and Develop Global holds the remaining 20%, aims to develop a base metals processing hub for the Pilbara region.
