Hawsons Iron (ASX:HIO) has retained $1.21 million in applications for its share purchase plan, exceeding the company’s $1 million capital raise target.
The board has approved the company to issue 71.14 million shares at a price of $0.017 per share under the purchase plan, with institutional investors supplying $700,000 of the funding at this same issue price.
Ignite Equity, acting as the lead manager to the placement, retained a 6% cash fee and 700,000 options at an exercise price of $0.03 expiring on 16 July 2028.
Non-executive Chair Jeremy Kirkwood says with Ignite’s interest in Hawsons, the company is able to accelerate upcoming plans at a “pivotal time”.
“The directors were pleased with the response from shareholders and appreciated the support from those who joined them in the SPP,” Kirkwood says.
Directors have subscribed $65,000 to the placement, as well as managers contributing $30,000.
CEO Tom Revy says funding will allow the company to fasttrack metallurgical test work while also updating its Prefeasibility Study and maiden ore reserves, intended to return at the end of 2025.
“Hawsons will also focus funds on potential by-products test work, metallurgical test work and preliminary environmental studies to ensure momentum towards the commencement of project’s Definitive Feasibility Study,” Revy says.
The company also intends to investigate the potential of producing secondary products as well as optimising mine design, processing, and logistics.
Hawsons Iron is focused on advancing green steel production to meet the International Finance Corporation (IFC) Performance Standards.
Write to Maddison Elliott at Mining.com.au
Images: Hawsons Iron
