Hawsons Iron (ASX:HIO) is raising up to $1 million through a share purchase plan after receiving interest from an investment fund to purchase shares to expedite activities at the Hawsons Iron Project.
At a price of $0.02 per share, the company is offering a 17% discount to the last traded price of $0.024 per share on 5 June and an 18% discount to the five-day volume weighted average price (VWAP) to the closing price on the same date.
The plan is expected to open to shareholders at 9am (AEST) on 23 June, before closing 11 July with shares to be issued on 16 July.
An investment fund approached the company to organise a placement of shares, but that had been delayed due to structural changes within the fund.
Funding will be used to provide an updated Prefeasibility Study, inclusive of maiden ore reserves, for the company’s flagship Hawsons Iron Project located 70km from Broken Hill in New South Wales.
Following an update to its dry communication test work program and mineral resource variability study, the company saw a spike in its share price to $0.028, more than doubling over four days.
A report of its namesake project supports the use of a dry processing circuit, which will incorporate safety, environmental, operational, and maintenance aspects into the iron project, further enhancing functionality, as reported by Mining.com.au.
The data collated in this report will go towards defining a maiden resource estimate, as well as its Prefeasibility Study. Hawsons will then determine a process design criteria and conduct a Definitive Feasibility Study of the project, while also testing the viability of producing hematite and silica sands over the next six-12 months.
The Hawsons Iron Project has a resource of 4.4 billion tonnes, which aims to keep up with long-term supply steel demands, with potential to expand for additional mineral resources to the south, east, and west.
Write to Maddison Elliott at Mining.com.au
Images: Hawsons Iron
