There are some good indicators in this release, which should...

There are some good indicators in this release, which should give shareholders some reason to be optimistic.

Hexagon Resources has signed a non-binding MoU with China National Building Materials - General Technology Co. Ltd of China to purchase 30% of planned primary production from Hexagon’s McIntosh Graphite project located in Western Australia.

"... the parties have agreed to negotiate project finance, pre-payment and other debt facilities to expedite project construction".

"... Hexagon plans for this to be the first of a series of collaborative agreements with a geographically widespread and diverse group of end-users with significant presence in the graphite market".

"... Recent test work reports have stimulated a considerable increasing interest in the McIntosh project from off-takers, financiers and investors. A number of factors are driving customers to cement strategic tie-ups, including increasing demand, sovereign risk issues, and heightened concerns about security and reliability of supply, especially for high quality material".

"... Whilst pricing is and will remain confidential, we are confident of exceeding our recently updated basket price of US$2,200/t of concentrate, subject to attaining our concentrate purity objectives".

"... Key recent developments to advance the McIntosh project include the identification of large flake endowment, a portion of the larger flake which is highly expandable and critically, the clean nature of the ore and resultant concentrates making them low cost and technically easy to purify to an “ultra-premium” “Five-Nines” (99.999 wt%C) standard".

"... These attributes, as well as the security and reliability aspects around the Australian source of the product, are creating increased interest in the Project, and emerging as key distinguishing features compared to many other graphite development companies around the world".

Gw