UBS now holds about 15.9 million shares in the company, with a voting power of 5.44%.
RapidSX Commercial Demonstration Plant
Hexagon’s core focus is to implement the development plan for the RapidSX Commercial Demonstration Plant (CDP) with its partner Innovation Metals Corp (IMC) for the downstream separation of rare earth elements (REE) and source the US$2 million of investment required to complete that work.
The company is in discussions with several parties to satisfy this requirement.
With initial direct meetings completed, but with further meetings rescheduled or reformatted due to COVID-19 travel restrictions – Hexagon is expected to complete negotiations remotely over the next few months.
In terms of progressing the CDP, other than financial timing, the main risk is anticipated to be the ability of clients to have sample material available for testing as the facility comes online, currently planned for the fourth quarter of 2020.
Other activities which are ongoing include; flowsheet enhancements and optimisation, patent preparation, development of the commercialisation strategy and discussions with clients on new technical services agreements.
At the end of February, Hexagon had a closing cash balance of $1.8 million with no debt.
Strategic importance of rare earth
Hexagon chairman Charles Whitfield said: “We continue to advance this REE opportunity and are working to mitigate Hexagon’s exposure to the current uncertainty in world events and volatility in global markets.
“Ironically, this pandemic has underscored the recent realisation that having supply industries heavily concentrated in one country or geography can significantly exacerbate industry and supply chain disruptions when unforeseen macro events occur – thus underscoring the value and strategic importance of our planned rare-earth business.”