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Australian energy materials business focused on downstream rare earths and graphite processing to service high-growth E-mobility and renewable energy sectors

American Innovation Metals (AIM)

Hexagon has an agreement with Innovation Metals Corp. (IMC) which gives Hexagon an Option to acquire a 49% equity interest in American Innovation Metals LLC (AIM). AIM is a prospective corporate joint-venture vehicle, which on exercise of the Option will own an exclusive intellectual property license for IMC’s RapidSX™ technology for the separation of rare earth elements (REEs), leading to the production of various high-purity REE oxides (REOs). To exercise the Option, Hexagon is required to pay IMC US$2.0 million in cash before 10 October 2020, which will result in Hexagon acquiring a 49% equity interest in AIM, with IMC holding the other 51%.

Under a binding Investment Agreement executed on 9 October 2019, Hexagon has an Option to acquire a 49% interest in AIM. The key points (assuming exercise of the Option) include:

  • AIM will be the incorporated JV vehicle for commercialisation of RapidSX for REE separation
  • The AIM Shareholders’ Deed will give IMC and Hexagon an ‘equal’ voice on the Board of Directors of AIM and the strategic management of the Company
  • AIM will have an exclusive, worldwide, non-transferable royalty-free licence to use RapidSX for REE separation
  • Post commercialisation – Hexagon will pay IMC US$4.0M drawn from 50% of Hexagon’s share of future surplus cash flows from AIM