Sign up Australia
Proactive Investors - Run By Investors For Investors

Hexagon Resources shareholders give nod to graphite project joint venture with MinRes

The company will form a joint venture with Mineral Resources Limited to develop stage I of the McIntosh project.
Handshake and joint venture image
MinRes will complete development activities and begin production within three years

Hexagon Resources Ltd (ASX:HXG) shareholders have approved a joint venture arrangement with Mineral Resources Limited (ASX:MIN) to develop stage I of the McIntosh Graphite Project in Western Australia.

Hexagon and MinRes now intend to establish an unincorporated joint venture with Hexagon holding a 49% participating interest.

MinRes will earn 51% by undertaking all feasibility studies within 18 months leading to a decision to mine within 24 months.

READ: Hexagon Resources agreement with Mineral Resources will result in development of graphite project

A three-year target has been set for MinRes to complete development activities and begin commercial production of graphite concentrate from the project in the East Kimberley region.

Milestone in development

In an address to this week’s general meeting, Hexagon chairman Charles Whitfield said: “I see this transaction as the first milestone in the future development of Hexagon.

“This will see us leverage our core skills of understanding materials markets, being expert in the technical attributes of those markets, and identifying, securing and developing resources that can feed those markets.

“I am very proud of the team that we are putting together to execute this strategy and I think the transaction put in front of you is a great indication of the first fruit of their ability.”

The McIntosh project is now effectively funded through to full commercial development via a project-level joint venture.

Mining services agreement

MinRes will build, own and operate the entire pit to customer mining, processing and logistics supply chain under a life of mine, mining services agreement.

A 50:50-owned special purpose company will act as the marketing agent for all stage I graphite concentrate products.

Hexagon believes the technical skills of MinRes, together with its Western Australian experience and financial capacity significantly de-risks the project.

Proposed demonstration plant

The company now plans to focus on the downstream development and stage II test work, comprising piloting and commercialisation of a purification circuit.

With the planned construction of a demonstration plant, Hexagon aims to verify to target-customers that its secondary processed and refined McIntosh graphite has cost advantages and technical enhancements over synthetic graphite.

View full HXG profile View Profile

Hexagon Resources Ltd Timeline

Related Articles

Verde Agritech shifting the dial for farmers and food consumers with Super Greensand
June 26 2018
The world population is expected to balloon by over one third, or 2.3bn by 2050..
February 06 2018
Coro Mining is on the move in Chile, with feasibility work nearing completion and new ground to work on
Mark Wilson and Mark Creasy with core sample from Nova-Bollinger
April 16 2018
Mark Creasy, who was behind Sirius Resources when it struck the jackpot at Nova-Bollinger has a 30% stake in the Rockford project and a 28% stake in Legend.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use