Hawk Resources Entitlement Offer Priced at 3 Cents per Share

Entitlement Offer Details and Shareholder Incentives

Hawk Resources Limited (ASX:HWK) has begun distributing prospectuses and personalised acceptance forms for its latest non-renounceable entitlement offer, aiming to raise up to $1.97 million before costs. Shareholders registered by 25 May 2026 can subscribe for one new share at 3 cents apiece for every eight shares they hold, with a sweetener of one free option for every two new shares subscribed. The offer closes on 19 June 2026, providing flexibility for shareholders to take up their full entitlement or apply for additional shares from any shortfall.

Capital Raise Positioned to Advance Key Projects

This capital raise forms part of Hawk's broader $5.87 million funding strategy, which also includes a placement, designed to accelerate exploration at its flagship Cactus copper project in Utah and the Olympus Scandium Project in Western Australia. The funds are also earmarked for lithium projects across Brazil's Minas Gerais and Bahia regions. The entitlement offer’s pricing and option incentives are structured to encourage participation amid ongoing drilling and soil sampling campaigns, reflecting the company's focus on critical minerals with strategic demand.

The offer’s terms allow shareholders to apply for shares beyond their entitlement, subject to availability, which could mitigate dilution risks faced by non-participating investors. This is particularly relevant given the potential dilution of up to 37.4% highlighted in the company's recent capital raise announcements. Directors have indicated their intention to fully participate, signalling confidence in the projects’ prospects and the capital raise structure.

Strategic Leadership and Project Pipeline

Led by Managing Director Scott Caithness, with a 40-year track record including senior roles at Rio Tinto and Vedanta, Hawk is leveraging its leadership to unlock value across its portfolio. The Cactus copper project has recently reported high-grade copper mineralisation, with assays reaching up to 37.3% copper near surface, underpinning the urgency to fund ongoing drilling. Meanwhile, progress on the Olympus Scandium Project is supported by a recently secured Mineral Exploration Agreement with traditional owners, clearing a key hurdle ahead of exploration activities slated for this quarter.

Hawk’s lithium assets in Brazil add further optionality, positioning the company to tap into multiple critical mineral markets. The capital raise therefore not only supports near-term drilling catalysts but also underpins longer-term strategic optionality across copper, scandium, and lithium sectors.

Investors will be watching uptake rates closely as the entitlement offer progresses, with the final allocation of any shortfall shares and the deployment of funds likely to shape Hawk’s development trajectory over the coming months. The company's recent $5.87M capital raise plans and high-grade copper assays at Cactus provide useful context for assessing the potential impact of this offer on shareholder value and project advancement.