Anax Metals (ASX:ANX) has completed tranche one of its previously announced placement to raise $10 million for loan and exploration costs.
The company has raised $5.2 million in tranche one through the issuance of 225.53 million shares.
Shares were issued at an offer price of $0.023 each, representing a 1.7% discount to the 10-day volume weighted average price.
As reported by Mining.com.au, the company onboarded Sternship Advisers as the lead manager for this placement, along with Bell Potter Securities as the co-manager.
The company will raise another $4.81 million through the issuance of 209.25 million shares in tranche two, bringing the total raising to $10 million through the issuance of 434.8 million shares.
Tranche two is subject to shareholder approval at an upcoming general meeting expected to be held in mid-May 2026. Anax directors have agreed to commit $1.06 million in tranche two, following approval from shareholders.
Funds will be used to repay the $3.5 million Jetosea Loan B, leaving the company with an estimated pro-forma cash balance of around $7 million after the repayment.
Anax extended the maturity date of this loan earlier this month to expire on 10 June 2026, after orchestrating the agreement in December 2025, as reported by this news service.
The repayment of Loan B will ensure the company does not have to pay a 2.5% net smelter royalty for material sources from the Whim Creek joint venture.
Along with repaying the loan agreement, Anax will use funds for development activities, debt and offtake funding agreements, and exploration activities ahead of a potential final investment decision for the Whim Creek Project in Western Australia.
Anax Metals is an Australian explorer focused on becoming a near-term producer of copper and zinc through its 80%-owned Whim Creek Project in Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Anax Metals
