Hexagon signs MOU offtake

Aspiring graphite miner Hexagon Resources has signed a non-binding offtake agreement with a Chinese building company for 30 per cent of the company’s planned production at its McIntosh project in the Kimberley.

Under the memorandum of understanding, Hexagon will supply up to 29,500 tonnes of graphite concentrate to China National Building Materials.

The parties have also agreed to negotiate project finance, pre-payment and other debt facilities for the project.

Managing director Mike Rosenstreich said the MoU was a step in the right direction.

“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,” he said.

“Recent test work reports have stimulated a considerable increasing interest in the McIntosh project from off-takers, financiers and investors.

“This MoU is an important step towards a binding contract because each party will invest significant time and resources to achieve a mutually beneficial long-term off-take agreement.”

Shares in Hexagon finished up 7 per cent at 23 cents.