Hexagon Resources Ltd’s (ASX:HXG) shareholders have voted overwhelmingly to support the change of the company’s name to Hexagon Energy Materials, reflecting Hexagon’s expanded strategy to include down-stream rare earth processing; rare earths also being a critical component of the high growth renewable energy, energy storage and electric vehicle sectors.
At Hexagon’s annual general meeting on Friday 22 November, chairman Charles Whitfield told shareholders: “We believe that the RapidSX rare earth element (REE) separation technology, developed by IMC that Hexagon has optioned, has the potential to transform the rare earths value chain as it fundamentally changes the economics around new REE project development.
“At the same time, Western businesses and governments are becoming increasingly focused on security of supply and the RapidSX process could unlock resources and supply chains to provide a competitive alternative for industry.”
Commercial demonstration plant
Hexagon managing director Mike Rosenstreich said: “Picking up on Charles’ remarks at the AGM, and given the strong support for Hexagon’s expanded strategy and entry into REE processing, we plan to start funding development of the Commercial Demonstration Plant forthwith.
“Initial work will comprise finalisation of the capital budget and schedule, leading to commencement of front-end engineering and design work so that ordering and construction can commence early in Q1 of 2020.
“To earn our 49% interest in American Innovation Metals (AIM) we need to fund the US$2 million build-out of the Demonstration Plant and global patent applications.
“We are very excited by this opportunity and with shareholder endorsement we want to get on with it.
“We look forward to working with IMC’s principals to commercialise the RapidSX approach to meet the wide interest that we are aware of from both existing REE producers and advanced project sponsors.”
Investment into American Innovation Metals (AIM)
More than 99% of votes cast at the recent annual general meeting of Hexagon shareholders were for a change in the nature and scale of the company’s activities through the acquisition of a 49% interest in AIM, a special purpose vehicle to commercialise the RapidSX processing technology, which separates the REEs contained in chemical concentrates produced by mine-site operators to subsequently produce rare-earth oxides (REOs) for use by various down-stream manufacturers.
The RapidSX technology was developed by a private Canadian company, Innovation Metals Corp (IMC), the 51% partner in AIM.