Hexagon Resources and Mineral Resources (MinRes) have today released joint statements via the ASX announcing the completion of Stage 1 funding for their ambitious McIntosh graphite joint venture.
The McIntosh flake graphite development, located in northern Western Australia approximately 100km from Halls Creek, is an upstream-focused project with a three-year timeline to commercial production.
MinRes, the builder, owner and operator of the pit, processing and logistics supply chain, currently possesses a 51 per cent interest in the project, while Hexagon, having signed its binding heads of agreement (HoA), makes up the other 49 per cent.
MinRes will undertake feasibility studies for the next 18 months, make a decision to mine within 24 months and target commercial production within 36 months. The two companies will form a distinct 50-50 company for marketing purposes for Stage 1 products.
Hexagon managing director Michael Rosenstreich commended MinRes in a statement:
“Mineral Resources is a very credible partner to work with us to bring the Stage 1 graphite project into production,” he said. “Their technical skills, Western Australian experience and financial capacity significantly de-risks the project and provides certainto to Hexagon and our investors.”