HXG has been in free-fall since I invested another of my 'I'm interested, think there's something here, let's learn more' stakes. Muddled as always.

Announced a capital raise today which seems like a really poor deal to me (but then I've already shown how little I know). Raising only $1.9M at a significant discount. Key elements of the announcement here:

Hexagon Energy Materials Ltd (“Hexagon” or “the Company”) is pleased to announce that it has successfully accepted $1.911 million of firm commitments in a placement of new fully paid ordinary shares to institutional and sophisticated investors.

Funds raised under the Placement will be expended by Hexagon on the following:

• Fully funded exploration program, including completion of drilling programs during the 2022 field season and associated exploration and drill sample analysis at Hexagon’s McIntosh Ni-Cu-PGE and Halls Creek Au-Base Metals-PGE Projects located in the East Kimberleys of Western Australia,
• Drill program result evaluation and further exploration program of work planning,
• Support of graphite exploration and project development at McIntosh and at the Ceylon Graphite
• Project, Alabama, USA being undertaken by third parties under Earn-in Agreements, and
• Minor working capital associated with these Projects.

The Placement was oversubscribed at an issue price of $0.028 per share with 180 Markets acting as Lead Manager. Directors have committed a total of $50,000.00 into the raise on the same terms, which will be subject to shareholder approval at the next general meeting of the Company. While the deal was initially offered and well covered at $0.034, information pertaining to a change in shareholding that was received after the offer had closed led to a final repricing.

Details of the Placement

66,496,668 ordinary shares will be issued under Tranche 1 of the Placement which will be undertaken within the Company’s existing capacity for new equity issuances under ASX Listing Rule 7.1 and, accordingly, no shareholder approval will be required for this issue of Hexagon shares. Settlement of the Placement shares is expected to occur on or around 28 April 2022. Tranche 2 of 1,785,714 of the placement shares for directors will be subject to shareholder approval as noted above.

HXG seemingly trying to get a bit of air into the recently deflating tires of their SP (rather inexplicably deflating to my mind) with an announcement today that they'll make an announcement of the feasibility of the Pedirka clean hydrogen project in February. Save me.

Whether the result of the announcement or not price is up 10% right now. Desperately weird thing this market we play in. Key elements of the "announcement" are below including some classic examples of saying absolutely nothing!.

Disc: Held here and in my SMSF.

Hexagon’s Clean Hydrogen Project Pre-Feasibility Study Completion Date set for February 2022

Key Highlights:

• The final stage of work for Hexagon’s Pre-Feasibility Study (PFS) for its Northern Territory “Pedirka” Hydrogen Project has now been defined and agreed with a completion date set for 28 February 2022.
• The final stage in completing the PFS will be expanded to allow for the assessment of a range of potential project improvement opportunities that were identified as part of the PFS to date.

The PFS work to date clarified the critical success factors for any clean hydrogen project development by Hexagon. These are:

• Access to commercially proven, at scale hydrogen carrier production technology e.g., Ammonia;
• Having the capacity to leverage pre-established port and transportation infrastructure for end- product export and in modular plant and equipment import, and ensuring project site proximity to this port;
• Access to pre-established long term capacity Carbon Capture and Storage (CCS) reservoirs and associated infrastructure, ideally multiple sites, creating competitive tension and pricing on CCS costs or charges;
• Sustainable access to multiple, large scale, low-cost energy sources, both for use as plant feedstock and for the energy to convert feedstock to hydrogen or a hydrogen carrier. This includes access to large-scale low-cost renewables. This would lead to a reduction in carbon emissions, materials handling and transportation, driving costs down;
• Environmentally and socially responsible and sustainable access to water;
• Best practice stakeholder engagement, including with landowners and communities;
• Binding long-term end customer offtake contracts, ideally as part of strategic project partnership;
• and
• Having a robust, de-risked commercial project returns profile to underpin the securing of project
• development financing through to Final Investment Decision (FID).
• 
  

The Hexagon Board is focused on establishing the best way forward for Hexagon to deliver its Clean Hydrogen strategic objectives, ensuring that all of the potential improvement opportunities that have been identified through the PFS are thoroughly assessed and, as appropriate, incorporated in the PFS recommendations delivered on completion.

Hexagon’s ultimate goal is participation in the large, global, emerging clean hydrogen market to deliver large quantities of clean hydrogen into Asian markets. Achieving this objective will deliver substantial value for shareholders and establish a strong foundation on which we can grow a substantial business.

What is critically important for Hexagon is that a lowest risk (technically and commercially) and lowest cost clean hydrogen project, with the highest potential for commercial success, is progressed as a result of the PFS.

Disc:  Hold here and in my SMSF

Share price has been bouncing around a bit the last couple of weeks up and down more than 10% in that period and yes the markey has been doing it's strange market things then I read the Chairman's letter from last week... paragraph 3... looks like there might be some positive announcements imminent.  As I've said in earlier straws, early days on some of these things for HXG but capital seems to be flowing to the right places, executing to plan and there's some encouraging signs along the way.

CHAIRMAN'S LETTER

Dear Fellow shareholders,

I am pleased to report that the Hexagon management team has made significant progress on its two most prospective projects, while substantially advancing strategic discussions for non-core assets throughout the 2021 Financial Year. We are very encouraged by some outstanding Nickel/Copper/PGM findings at McIntosh which opened the door to several development alternatives and by the progress in the potentially transformational Pedirka Blue Hydrogen project.

The Company has stayed true to its mandate to seek out and progress mining opportunities that will become increasingly relevant in the global transition to clean energy. This trend has gathered pace and we believe Hexagon is very well positioned to take advantage of these developing markets.

Halls Creek and Charge Minerals in Alabama are both likely to be subject to accretive transactions and shareholders should look forward to positive announcements around these assets in the near future.

Our work at McIntosh has been producing some very encouraging results. The direction that Nickel/Copper/PGM findings at McIntosh are taking us behooves the Company to continue to develop the understanding of this asset. We are finalising a set of studies which will result in better understanding but also identify targets for a drill program to get a complete picture of its potential, before landing on a development pathway.