If Michael Rosenstreich is true to form he will do a detailed video to illustrate the real significant benefits of the Min Res deal. I feel there is lots more to come
“Credible partner to work with” Hexagon managing director Michael Rosenstreich said: “Mineral Resources is a very credible partner to work with us to bring the stage I graphite project into production.
“Their technical skills, Western Australian experience and financial capacity significantly de-risks the project and provides certainty to Hexagon and our investors.
“Subject to a favourable feasibility study, Hexagon now has a clear line of sight toward product sales and cash flow, which will be funded by MinRes to commercial production under its proven build own operate model.
“In terms of future business growth, this enables the Hexagon team to focus on the downstream, stage I processing options and new project opportunities.”
A 50:50-owned special purpose company will act as the marketing agent for all stage I graphite concentrate products.
This deal puts HXG graphite in a accelerated position for further offtakes. It should be noted that Min Res has a spherical graphite partner. The previous announced 30% should be quickly added to.
Also the current deal means very little ongoing cost to HXG. NO FURTHER DILUTION OF CAPITAL.
GLTA
HXG Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
