Green Critical Minerals reaches 80% ownership of McIntosh graphite project
Green Critical Minerals (ASX: GCM) has reached a new milestone in its end-to-end graphite development strategy by achieving 80% ownership of the McIntosh project in Western Australia’s far north.
Through its wholly owned subsidiary GCM Graphite, Green Critical Minerals has confirmed the fulfilment of Stage 3 earn-in requirements for the project, having spent in excess of $4 million on exploration and development over a two-year period.
The fourth-largest graphite resource in Australia, with 1.1 million tonnes of contained graphite, McIntosh is also one of Australia’s most advanced graphite projects, with more than $14m spent on it to date.
Unincorporated JV
Green Critical Minerals and Hexagon Energy Materials (ASX: HXG) had initially agreed to establish an unincorporated joint venture (JV) for the exploration and evaluation of graphite minerals within the project tenements.
However, Hexagon has not agreed to execute the JV agreement due to ongoing legal proceedings in the Supreme Court of WA, alleging GCM did not comply with the requirements of a binding terms sheet in relation to the Stage 2 earn-in.
GCM Graphite has recently lodged a defence to Hexagon’s counterclaim and will continue to prosecute this and its own claim if the dispute cannot be resolved on a commercial basis.
GCM has also reported that the court’s recent confidential mediation has now been adjourned.
McIntosh progress
In August, Green Critical Minerals awarded leading engineering and studies services provider Wave International the upstream engineering PFS for the McIntosh project.
Wave International has compiled a study team with extensive experience in the design of graphite concentrate plants.
The PFS will focus on producing a suite of fine flake concentrate products, with a staged approach to development.
Capital raising
Green Critical Minerals received firm commitments earlier this month from sophisticated and professional investors to raise just under $2.5m.
Proceeds from the placement will fund further development of McIntosh, including completion of a pre-feasibility study (PFS) and executing the commercialisation plan for the recently acquired VHD Block technology.
The funds will assist the company in finalising a pre-feasibility study for the high-purity McIntosh project that could ultimately provide GCM with an end-to-end mine-to-market supply chain.