Published: March 11, 2016 |

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Hexagon Resources Ltd has closed a $1.358 million capital raising at $0.08 each with new and existing institutional funds, and sophisticated / professional investors for the company’s McIntosh graphite project in Western Australia.

The company planned to place 12 million ordinary shares but demand for the stock was such that the placement was increased to 16,975,000 ordinary shares.

Investors also received a 1 for 2 unlisted option exercisable at $0.12 with an expiry date of September 30,  2017.

Funds raised from the placement will be used to fund final stage environmental and hydrogeological studies, further engineering and process design and commencement of a feasibility study for McIntosh plus ongoing working capital.

MCINTOSH GRAPHITE PROJECT

After a resource upgrade, McIntosh has Australia’s largest flake graphite project by contained tonnes with a resource of 17.2 million tonnes at 4.63 percent TGC.

McIntosh is located in the Kimberley region of Western Australia. Hexagon plans to progress the through feasibility study given the strong metallurgical results.

Simple floatation can achieve ultra high purity of +99 percent TC flake graphite concentrate at high recovery rates.

High purity flake graphite concentrate is suitable for use in the growing battery graphite and other emerging high technology applications which can command a premium price.

All eyes will be on upcoming news flow including:

•  University of Adelaide graphite / graphene test work results
•  An update on the South Korean assets
•  Progress on end user / offtake discussions

Hexagon is evaluating the development options for the three graphite projects in South Korea.

Source: (March 9, 2016) Proactive Investors

About Hexagon Resources
Hexagon Resources Ltd has a focus on high purity flake graphite.

To stop by Hexagon’s website, CLICK HERE

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