Anax Metals (ASX:ANX) shares dropped sharply, slipping as much as 12.5% to A$0.035, its lowest level since November 2020.

The dip in the Australian explorer’s shares is said to be triggered by the company’s announcement of a A$5.0 million non-renounceable entitlement offer.

Contrary to a rise, the issue price of A$0.035 per share is expected to suggest a 12.5% discount to the stock’s last closing.

It appears that the collected funds are slated to be appropriated towards its Whim Creek Project, located in Western Australia, and for lithium exploration.

Consequently, the stock is currently experiencing a decline, recording a drop of 24.5% for the year to date, measured as of the last close.

Anax Metals is an Australian based company focused on mineral exploration.