Chase Mining Corporation is poised to nab a major stake in the third-largest ASX-listed graphite project in Australia, which sells high quality graphite products into a diverse range of premium end-use markets, including battery anode.
The company has signed a binding agreement with Hexagon Energy Materials to buy Green Critical Minerals (GCM), which has the right to acquire up to 80 per cent of the graphite rights for the advanced McIntosh Graphite Project, located in Halls Creek, Western Australia.
McIntosh graphite is a unique mineral with extremely low impurities and exceptional “low cost and high yield” downstream processing attributes. It contains a significant flake size endowment, with more than 85 per cent of its Emperor deposit being greater than 180 microns, placing it in the top quartile for flake size distribution globally.
The properties of the McIntosh flake allows the targeting of the highest value graphite products in the market including lithiumion batteries, graphite foils, energy products, semiconductors, industrial diamonds, aerospace, and defence applications.
Hexagon has previously completed two scoping level studies on the McIntosh Project, which Chase intends to fully review and update.
Acquisition is conditional upon, amongst other things, approval by Chase shareholders and a successful capital raising to secure a minimum of $4.5 million in cash.
The company has commenced the process of strengthening its management team by implementing a search for experienced and dynamic executives with the skill set required to advance the project through offtake and development.
It also intends to seek shareholder approval to change its name to Green Critical Minerals to reflect its focus on graphite.