Hawsons Iron Limited is raising up to $1 million through a discounted Share Purchase Plan to fund critical project development while continuing strategic investor discussions.
- Up to $1 million to be raised via Share Purchase Plan (SPP)
- Shares offered at an 18% discount to recent VWAP
- Funds allocated to updated Prefeasibility Study and Maiden Ore Reserves
- Ongoing talks with strategic investors following delayed placement
- SPP open from 23 June to 11 July 2025 for eligible Australian and New Zealand shareholders
Capital Raising to Maintain Momentum
Hawsons Iron Limited (ASX – HIO) has announced a Share Purchase Plan (SPP) aiming to raise up to approximately $1 million. This move comes as the company seeks to maintain development momentum on its flagship Hawsons Project amid ongoing discussions with potential strategic investors.
The SPP offers eligible shareholders in Australia and New Zealand the opportunity to purchase additional shares at a price set at an 18% discount to the recent five-day volume-weighted average price (VWAP), or a fixed price of $0.020 per share, whichever is lower. This pricing strategy is designed to incentivize shareholder participation while balancing capital raising needs.
Purpose of the Funds
The proceeds from the SPP will be directed primarily towards advancing the Hawsons Project’s technical and commercial readiness. Specifically, funds will support the completion of an updated Prefeasibility Study (PFS) and the establishment of Maiden Ore Reserves. Additionally, the company plans to investigate potential secondary products and optimize mine design, processing, and logistics; critical steps to enhance project value and operational efficiency.
Hawsons Chairman Jeremy Kirkwood highlighted the strategic rationale behind the SPP, noting that a previously anticipated placement with an international investment fund has been delayed due to changes in that fund’s ownership and management. In response, the Board has opted to give existing shareholders the first opportunity to invest, ensuring the company can continue its critical path activities without interruption.
Shareholder Participation and Timetable
The SPP opens on 23 June 2025 and closes on 11 July 2025, with shares expected to be issued on 16 July 2025. Eligible shareholders registered by 7 – 00pm AEST on 11 June 2025 will be invited to participate without brokerage or transaction fees. The company retains discretion to scale back applications if demand exceeds the target raise, ensuring equitable treatment of applicants.
Directors of Hawsons have indicated their intention to participate in the SPP, signaling confidence in the project’s prospects and the company’s strategic direction.
Looking Ahead
While the SPP provides a near-term capital injection, the broader strategic investor discussions remain a key focus. The updated PFS and Maiden Ore Reserves will be pivotal in positioning Hawsons for these negotiations, potentially unlocking larger-scale investment and advancing the project towards definitive feasibility and eventual development.
Bottom Line?
Hawsons’ SPP is a tactical step to sustain project progress while navigating investor interest and market conditions.
Questions in the middle?
- How will the updated Prefeasibility Study impact Hawsons’ valuation and investor appeal?
- What is the timeline and likelihood of securing a strategic investor following the delayed placement?
- Could the scale-back mechanism affect shareholder participation and market perception?