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Highlights
- Green Critical Minerals secures 80% ownership of McIntosh graphite project.
- Legal proceedings continue over JV agreement with Hexagon Energy Materials.
- Focus shifts to pre-feasibility study and development of graphite supply chain.
Green Critical Minerals (ASX:GCM) has strengthened its position in the Australian graphite sector by reaching 80% ownership of the McIntosh graphite project in Western Australia. The company achieved this milestone through its subsidiary GCM Graphite, fulfilling Stage 3 earn-in requirements by investing over $4 million in exploration and development over two years.
McIntosh is recognized as the fourth-largest graphite resource in Australia, hosting 1.1 million tonnes of contained graphite. This advanced project has already seen more than $14 million invested in exploration, making it a cornerstone of GCM's strategy to establish an end-to-end graphite supply chain.
Joint Venture and Legal Proceedings
Green Critical Minerals initially partnered with Hexagon Energy Materials (ASX:HXG) to form an unincorporated joint venture for exploring and evaluating graphite deposits within the McIntosh tenements. However, Hexagon has raised legal disputes, alleging GCM did not meet the conditions of the Stage 2 earn-in agreement.
While GCM has lodged a defense against Hexagon’s counterclaim, the dispute remains unresolved. Confidential mediation in the Supreme Court of Western Australia has been adjourned, and GCM has signaled its commitment to pursuing a resolution through legal or commercial avenues.
Advancing the McIntosh Project
Green Critical Minerals continues to drive development at McIntosh, awarding Wave International the pre-feasibility study (PFS) contract for the project in August. Wave International brings significant expertise in graphite plant design, with the PFS focusing on producing fine flake concentrate products and adopting a phased development strategy.
This study is expected to shape the roadmap for unlocking the full potential of the McIntosh resource, aligning with GCM’s vision of creating a mine-to-market graphite supply chain.
Funding Development
To support its initiatives, Green Critical Minerals recently secured commitments from professional investors to raise nearly $2.5 million. The funds will be utilized to complete the pre-feasibility study and commercialize the VHD Block technology, a key addition to the company's graphite portfolio.
This financial backing highlights market confidence in GCM’s strategic direction as it moves closer to becoming a leading player in the high-purity graphite market, leveraging its robust McIntosh project and innovative technologies.
