Anax Metals (ASX:ANX) has repaid the $3.5 million outstanding loan balance, held by major shareholder Jetosea.
In connection with the repayment and non-conversion, Anax issued 50 million non-conversion unlisted options, exercisable at $0.0225 and expires on 27 September 2027, as well as 6.89 million loan unlisted options under the same terms.
Following the repayment, both parties do not retain the right to convert the loan principal to a 2.5% net smelter return royalty over the company’s participating interest in product from the Whim Creek Project in Western Australia, prior to maturity.
As previously reported, Anax conducted a $10 million capital raise to fund the Jetosea repayments. The offer price of $0.023 represented a 1.7% discount to the 10-day volume weighted average price.
Alongside the loan repayment, the funds will be used for development activities, debt and offtake funding agreements, and exploration work ahead of a final investment decision for Whim Creek.
Whim Creek is a copper and zinc asset located 120km southwest of Port Hedland. The project contains a reserve of 4.6 million tonnes @ 1.36% copper and 2.30% zinc and is forecast to produce between 10,000 and 12,000 tonnes of copper-equivalent per year.
Write to Aaliyah Rogan at Mining.com.au
Images: Anax Metals
