HXG Commences Funding the Commercialization of RapidSX Rare-Earth Elements Separation Technology - Seite 2

IMC and Hexagon have agreed to form AIM — an incorporated joint venture — with IMC contributing the RapidSX technology IP and expertise for REE separation. Hexagon contributes commercial and marketing skills and has agreed to invest US$2 million into the construction of the RapidSX CDP and to pay US$4 million to IMC as deferred consideration, payable from Hexagon’s share of future AIM cash flows.

HXG’s Phase-One funding contribution will be applied towards HXG’s US$2 million option obligation and will enable IMC — through AIM — to advance the requisite development work to ensure the RapidSX CDP timelines are achieved on time and on budget; and, concurrently, to protect the IP of this important and potentially disruptive REE technology.

AIM’s mandate is to commercialize the RapidSX technology for the separation and processing of REEs, and by doing so create a viable alternative to the Chinese monopoly over virtually the entire global REE supply chain.

HXG’s Managing Director, Mike Rosenstreich, commented, “Given the strong support at our recent AGM for Hexagon’s expanded strategy and entry into REE processing, we are tremendously pleased to be able to start working with IMC and fund development of the Commercial Demonstration Plant forthwith.”

“The RapidSX technology is a game changer for the global REE processing industry, and a historic opportunity to diversify a global REE supply chain with greater participation from Western producers and manufacturers,” stated Mr. Rosenstreich. “With Front-End Engineering Design work commencing in early January 2020, we intend to have a RapidSX-based commercial demonstration plant fully operational — in North America — in Q4 2020, with a planned production capacity of between 60 and 80 tonnes per annum. Our focus is on the commercialization of RapidSX to generate returns for our shareholders and to build a viable and sustainable energy-materials business.”

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¹ Adamas Intelligence, Electric Growth: EVs, Motors and Motor Materials (2019)

HXG has commenced several discussions with various potential funding and strategic partners exploring near-term financing opportunities for HXG’s ongoing participation in the AIM joint venture, in addition to the Company’s US-based downstream graphite development plans.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1abaca77-a95d-4860 ...

RapidSX COMMERCIALIZATION STRATEGY

Based on IMC’s pilot-scale work, RapidSX has demonstrated robust economics, the ability to effectively separate LREE and HREEs, significantly reduced footprint/staging, and the ability to build out and commission quickly. However, the most compelling aspect of the technology to HXG is the fact that RapidSX is not a ‘new’ technology (with uncertain technological, scalability and economic uncertainties typically associated with new technologies), but rather a radical improvement on the well-established and understood solvent extraction (“SX”) separation technology (SX is a well-established, time-proven separation technology for separating REE concentrates into commercial-grade REE products. All commercial separation of REEs today relies on conventional SX).