Hawk Resources Secures $5.87m to Advance Scandium and Copper Projects

Strong Investor Support for $5.87m Capital Raise

Hawk Resources (ASX:HWK) has secured firm commitments for a $3 million placement priced at 3 cents per share, sweetened with free attaching options exercisable at 7 cents by November 2028, pending shareholder approval. This forms the backbone of a broader $5.87 million capital raising package that also includes a non-renounceable entitlement offer and a potential top-up placement.

The entitlement offer invites existing shareholders to subscribe for one new share for every eight held, aiming to raise approximately $1.97 million on the same 3-cent price, also with attaching options. Meanwhile, an additional top-up placement of up to $900,000 is planned, subject to investor demand. Cygnet Capital is managing the entire raising, which has attracted strong backing from Australian institutional and high net worth investors.

Funding Exploration Across Australia and the US

Proceeds from the capital raise are earmarked to accelerate exploration at Hawk’s Olympus scandium project in Western Australia, alongside advancing copper projects in Utah and Arizona, USA. The Olympus project, where Hawk recently signed a Mineral Exploration Agreement with the Ngaanyatjarrra Traditional Owners, will see initial soil sampling and drilling commencing in June 2026 after regulatory approvals and cultural heritage surveys are completed.

In the US, drilling will continue at the Cactus copper project in Utah, where recent campaigns have intersected near-surface mineralisation along a 1-kilometre corridor. Surface exploration will also begin at the newly acquired Meerkat copper project in Arizona, with initial sampling and geophysical surveys planned to identify drill targets. These activities follow Hawk’s recent high-grade copper mineralisation at Cactus and the option deal for Meerkat copper project, positioning the company to build on early successes in both regions.

Capital Structure and Shareholder Considerations

The placement utilises Hawk’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A, allowing the issue of 100 million shares. However, the attaching options require shareholder approval, which will be sought in due course. The entitlement offer is non-renounceable, meaning shareholders cannot trade their rights, but any shortfall will be offered to investors through a shortfall offer and potentially a top-up placement, ensuring maximum capital is raised.

Hawk’s chairman Tom Eadie described the strong investor support as a solid endorsement of the company’s exploration portfolio and its strategy to advance critical minerals projects. Managing Director Scott Caithness highlighted the dual focus on scandium and copper as a way to leverage growing demand for critical minerals in global supply chains.

The capital raise also includes fees payable to Cygnet Capital, including a 2% management fee and a 4% capital raise fee on placement funds, alongside a proposed issue of 20 million options to Cygnet subject to shareholder approval.

Exploration Timelines and Next Steps

Exploration at Olympus is set to begin in June 2026, following the recent signing of the Mineral Exploration Agreement with traditional owners and subsequent ministerial approvals. Meanwhile, drilling at Cactus is ongoing, building on promising copper intersections reported earlier this year, with the Meerkat project exploration ramping up in May 2026. These activities align with Hawk’s broader strategy to advance its critical minerals assets in parallel, aiming to deliver near-term value catalysts for investors.

Hawk’s capital raise and exploration plans come after a series of recent announcements, including the Native Title pact unlocking Olympus exploration and ongoing progress at its US copper projects, underscoring the company’s momentum in a competitive sector.