Hawsons’ $2.2M Raise Hinges on Byproduct Viability and Waste Optimisation Risks

Capital Raise to Propel Hawsons Iron Project

Hawsons Iron Limited (ASX, HIO) has successfully completed a $2.2 million placement at a 22.7% discount to the recent volume-weighted average share price, issuing 137.5 million new shares at $0.016 each. The placement includes one free attaching option per share, exercisable at $0.028 and expiring in February 2029. This capital injection is designed to fund critical workstreams aimed at enhancing the economics and reducing the development risks of the Hawsons Iron Project in New South Wales.

Notably, the placement attracted strong demand from a mix of new sophisticated investors, including an international cornerstone participant, as well as existing shareholders. The company’s board members have also committed $180,000 to the raise, subject to shareholder approval, signalling confidence and alignment with the project’s future.

Targeted Use of Funds

The proceeds will be directed towards several strategic initiatives. Foremost among these is assessing the financial viability of producing a non-magnetic iron byproduct, a development supported by recent test work with CSIRO that identified material grading above 20% iron content. If viable, this byproduct could generate a valuable new revenue stream, significantly improving project economics.

Additionally, the company plans to optimise waste handling processes by exploring a shift from trucking fleets to conveyor systems for transporting approximately 90 million tonnes of processing waste annually. This change could reduce capital expenditure, labour, and fuel costs, further enhancing project value.

Other funded activities include ongoing metallurgical test work to support negotiations with strategic investors and financiers, environmental and heritage assessments critical for regulatory approvals, and preliminary planning for drilling programs integral to the upcoming final Feasibility Study.

Strategic Implications and Next Steps

Chairman Jeremy Kirkwood emphasised the significance of this raise as potentially the last before the final Feasibility Study, stating it provides a clear path to build on the detailed Pre-Feasibility Study released in December 2025. The outcomes of the funded workstreams are expected to materially enhance the project’s attractiveness to strategic partners, particularly those interested in green steel initiatives.

Ignite Equity acted as Lead Manager for the placement and will receive options on similar terms as part of their fee arrangement. The company plans to settle the placement by early February, with the new shares expected to commence trading shortly thereafter.

While the board’s participation awaits shareholder approval, the successful raise and strong investor interest underscore growing confidence in Hawsons’ strategy and the underlying project fundamentals. The next phase will focus on delivering the studies and optimisations that could unlock significant value ahead of final investment decisions.