Good news. They have sold control of the project for only $4...

Good news.

They have sold control of the project for only $4 million dollars, but more importantly, they don't have to pay the $4 million until after production, and they keep 49% of the project.

I expect that a separate deal for stage 2 will be done at some time, with HXG having to cough up 49% of the funding, or be bought out by MinRes or someone else, for stage 2 to go ahead.

Natural Graphite projects have proven very difficult to bring to production at any scale. MinRes have the resources and the infrastructure.

It would have been nice for MinRes to buy the project outright for $300 million and all shareholders get a special dividend of $1 a share, but hey.... you can't have everything. This should rise to the 40c range in the next 3 months (if the PFS is good).

The roadshow will be interesting next week, especially to see what kind of feedback and comments the team get, and how they sell the deal to the market.

The directors will also have time now to devote to the other HXG projects, and to look around for new projects, as they suggested. I wonder if they are eyeing up new graphite projects, or going for something else.

Gw