Anax Metals Limited (ASX: ANX, or the Company) is pleased to announce that it has entered into a nonbinding agreement (Agreement) with Anglo American Marketing Limited to fund the development of the Whim Creek Project.
The Agreement comprises a US$2M (AU$2.6M) Royalty agreement for a 1% Net Smelter Return (NSR) from the Anax production (80%) from Whim Creek. The proposed payment would provide Anax with further capital for early-stage development activities, exploration and capacity to assess further opportunities under the Anax strategy.
The Agreement also includes a proposed project funding package of up to US$20M (AU$26M) for the preproduction capital and other financial commitments required to develop the Whim Creek mine and associated infrastructure. The development will include the refurbishment of existing site infrastructure, installation of new ore sorting and gravity separation circuits, and heap leach equipment.
The next stage is for Anax and Anglo American to work towards formal binding documentation. This is currently underway and is expected to complete in the coming weeks.
Contact:
Tel: +61 8 6389 7400
Email: info@anaxmetals.com.au
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