- Hexagon Energy (ASX:HXG) has landed strong shareholder support to step into the rare earth market
- At Friday’s Annual General Meeting, shareholders voted yes to a joint venture between Hexagon and Canada-based Innovation Metals
- The new company will market Innovation’s rare earth separation technology
- As part of the change in direction, Hexagon’s name changed from Hexagon Resources to Hexagon Energy Material
- Company shares rose 4.41 per cent over the trading day to close at 7.1 cents each
Hexagon Energy shareholders have backed the company’s decision to tap into the rare earth market at the company’s latest Annual General Meeting.
The company, called Hexagon Resources up until today, announced plans to step into rare earth processing in October through a joint venture (JV) project with Canada-based Innovation Metals Corp (IMC).
Hexagon locked in the option to buy up a 49 per cent interest in a joint venture company, American Innovation Metals (AIM), so long as shareholders approved the company’s change in direction.
In a landslide vote, 99 per cent of shareholders showed their support.
The focus of the joint venture will be the commercialisation of IMC’s RapidSX technology, which is used for rare earth separation.
Essentially, RapidSX acts as a de-risked solvent-extraction technology. It can be used to drastically reduce the processing time for rare earth elements (REEs).
This means Hexagon will have a direct hand in the production of rare earth oxides (REOs).
Hexagon’s Chairman, Charles Whitfield, told shareholders at Friday’s AGM the RapidSX tech has the potential to transform the rare earths value chain.
“Western businesses and governments are becoming increasingly focused on security of supply and the RapidSX process could unlock resources and supply chains to provide a competitive alternative for industry,” Charles said.
Managing Director Mike Rosenstreich added onto these thoughts today, saying the company is eager to get on with building a commercial demonstration plant as part of the JV agreement.
“We look forward to working with IMC’s principals to commercialise the RapidSX approach to meet the wide interest that we are aware of from both existing REE producers and advanced project sponsors,” Mike said.
To earn its 49 per cent interest in AIM, Hexagon needs to fork out almost $3 million (US$2 million) on funding to build the plant and land some global patent applications.
Hexagon will also need to pay IMC a further $5.9 million (US$4 million) in deferred payments.
Hexagon shares rose 4.41 per cent over the trading day to close at 7.1 cents each in a $20.72 million market cap.