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- Anax Metals (ANX) has entered a trading halt while it plans to raise some fresh capital
- This follows a recent research and development rebate of $343,000 which is being used to support the development of the Whim Creek project in WA’s Pilbara region
- Various activities are being conducted for Whim Creek, such as drilling and metallurgical studies ahead of a definitive feasibility study expected in the first half of 2022
- Whether or not the upcoming raise will support these activities isn’t yet clear, but details are expected to be released by Thursday, February 10
- Company shares last traded at 9.1 cents on Monday, February 7
Anax Metals (ANX) has entered a trading halt in relation to an upcoming capital raise.
The materials stock hasn’t disclosed how much it intends to raise, how it will spend the money nor any other details.
Anax did recently receive a $343,000 boost from the Australian Taxation Office (ATO) in relation to a refundable research and development offset claim for the 2021 financial year.
Anax said the rebate gave it additional liquidity to support the development of the 80 per cent owned Whim Creek project in the Pilbara region of WA. Whether or not the upcoming capital raise will also fund the development of this project is not yet clear.
In its recently announced quarterly report for the three months ending December 31 2021, Anax Metals detailed plans to start diamond drilling in late January or early February. Drilling is reportedly designed to assist with metallurgical testwork and other activities ahead of a definitive feasibility study slated for the first half of this year.
The company has a 100 per cent stake in both the Mount Short and Loudens Patch projects however no planned exploration for the year has been outlined as of yet.
Anax ended the December quarter with $5.28 million in cash and 1.9 estimated quarters left of available funding.
When asked if it had taken, or plans to take any steps, to raise further cash, ANX said it has a “portfolio of listed ASX shares valued at $2.64 million at December 31, and access to additional capital raising capacity, both of which can be used to secure additional funding”.
Details on the proposed capital raise are expected to be released by Thursday, February 10.
Company shares last traded at 9.1 cents on Monday, February 7.
