Hawsons Iron (ASX:HIO) has received an expression of interest (EOI) from European lender KfW IPEX for non-binding debt funding to support the export of German mining equipment for its namesake project.
The EOI will provide indicative financing of 85% of eligible mining and processing equipment exports for the Hawsons Iron Project.
Hawsons says KfW IPEX’s interest confirms its support in the export supply phase through structured financing solutions. The company also expects to establish relations with German suppliers as a result.
KfW IPEX’s participation in funding exported equipment for the asset is subject to a detailed technical and financial appraisal. This appraisal requires that requested information be made available, including the final Feasibility Study, results of due diligence programs, a project appraisal, and that the minimum financing debt amount be met.
Hawsons Managing Director Tom Revy says this is an “important milestone” for the company as it advances its financing strategy.
“It highlights increasing international lender confidence in the Hawsons Iron Project and positions the company strongly as we progress funding discussions with strategic partners,” Revy says.
Finance advisors for the Hawsons Iron Project Cutfield Freeman & Co says the EOI is a “strong vote of confidence” in Hawson’s financing strategy and the strategic nature of the Hawson Iron Project.
“German equipment will form the backbone of Hawson’s development plan, and the support of KfW and Euler Hermes has the potential to play an integral part of the project financing,” the financial advisory firm says.
KfW IPEX provides export credit agency–backed financing under the coverage of Euler Hermes, the official export credit agency of the Federal Republic of Germany.
Hawsons Iron is advancing the Hawsons Iron Project and ‘green steel’ production to meet IFC Performance Standards on environment and social sustainability.
Write to Maddison Elliott at Mining.com.au
Images: Hawsons Iron
