Commodities, Finance, Iron ore, News

Carpentaria banks funding to progress Hawsons

gold mining

Carpentaria Resources has raised $35.6 million to advance the bankable feasibility study for the Hawsons Iron project in New South Wales.

The capital raising was conducted at $0.15 per share and provided via an underwritten placement of 54.3 million shares and a 1-for-2.6 entitlement offer of 183 million shares.

Carpentaria has also offered shareholders with an entitlement offer to subscribe for its shares at the same $0.15 per share price.

This means shareholders can subscribe at $0.15 per share for one new Carpentaria share for every 2.6 shares in the company they hold at the record date.

The company anticipates that the entitlement offer will raise $27.45 million and issue approximately 182.9 million shares. Carpentaria stated it would release documents about the entitlement offer in the coming days.

Carpentaria chief executive chairman Bryan Granzien welcomed the support to deliver Hawsons’ bankable feasibility study.

“It is extremely encouraging that the company has received such strong institutional support to carry out the Hawsons bankable feasibility study,” Granzien said.

Granzien added that the capital raising had put the company in a position where it would not require off-take partners.

“We are now in the strong position of not requiring funding from potential off-take partners at this stage, which will enhance the company’s position in any future off-take arrangement(s),” he said.

“We have worked hard over the last six months to secure this strong commercial position prior to any off-take agreements, which in the end should result in the most favourable off-take terms to the company and shareholders.”

Carpentaria owns 94 per cent of Hawsons with Starlight Investment Company owning the remaining 6 per cent.

“Early in the year, we carried out strategic planning sessions in respect of the Hawsons Iron project and its financing,” Granzien said.

“We developed a plan and are carrying it out. BFS (bankable feasibility study) funding is a significant part of that plan, and we are confident this will lead to the successful development and operation at Hawsons.

“Following the raising of this $35.6 million, the company has a clear path to complete the BFS, which we are confident will further demonstrate that the Hawsons Iron project is one of the world’s best undeveloped iron ore projects because it will be a low cost operation that can produce premium quality iron ore products.”

Granzien said Hawsons has the potential to create low-emissions iron ore products.

“Hawsons will help satisfy the ever-growing demand for high-quality iron ore products. In a world that is transitioning towards greener steelmaking, Hawsons Supergrade product will be highly sought after to reduce carbon dioxide emissions and create green steel,” he said.

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