Hawsons Iron (ASX:HIO) has launched a share purchase plan (SPP) to raise up to $1.5 million for hematite by-product test work and pelletisation studies.
The company is offering shares at $0.011 each, representing a 15.7% discount to its five-day volume-weighted average price as at 30 July 2026. Participants will receive one free attaching option per share, exercisable at $0.015, with expiry on 31 December 2027.
Shareholders who were on the register at 7pm AEST on 30 July 2026, with addresses in Australia or New Zealand, are eligible to participate. The SPP booklet and options prospectus will be dispatched on 6 August 2026 or thereabouts.
“This relatively small capital raise is necessary for the company to complete its non-magnetic iron by-product test works and assess what the technical and financial implications are to the overall project,” Chairman Jeremy Kirkwood says.
The company will also undertake phase one test work on pelletising concentrate on-site using low-energy technology. Kirkwood notes optimisation and financial analysis of process waste handling completed in May resulted in a 37% increase in project net present value.
“I acknowledge that we expected the funds raised in early February would be sufficient before funding would be required for the final Feasibility Study, but delays with testing processes made this unachievable,” he adds.
Proceeds will fund finalisation of hematite by-product studies, pelletisation options, heritage and ecological surveys for Feasibility Study drill sites, and corporate costs.
The SPP opens on 6 August and closes at 7pm AEST on 19 August 2026. Results and share issuance are scheduled for 25 August, with quotation commencing 26 August 2026.
Hawsons may accept applications above or below the target amount and conduct pro-rata scale-backs if oversubscribed, with all directors participating.
Hawsons Iron is an Australian iron ore developer advancing its flagship Hawsons Iron Project near Broken Hill in New South Wales.
Write to JC Villarba at Mining.com.au
Images: Hawsons Iron
