Subsequent to our January 2018 initiation research report, Hexagon Resources (“Hexagon” or “the Company”) has significantly de-risked the McIntosh Graphite Project (“McIntosh” or “the Project”) located in the Kimberley region of Western Australia.
The major advance involves the signing of a binding Heads of Agreement (“HoA”) to form a JV covering the development of Stage 1 of McIntosh with Mineral Resources Limited (ASX: MIN, “MinRes”), whereby MinRes can earn 51% of the Project through sole funding from a feasibility study (“FS”) through to commercial production of the Phase 1, 100,000tpa concentrate production scenario as presented in the May 2017 Pre-Feasibility Study (“PFS”) – the time frame for commercial production is three years from shareholder approval of the agreement (expected in early May) with an 18 month time frame for completion of development studies and all permitting; MinRes has the right to withdraw pending the outcome of the FS.
