Hawsons Iron has achieved several important milestones in the past 12 months, underlined by a $35.6 million capital raise and a 400-million-tonne resource upgrade.
The raising took place under Hawsons Iron’s previous name, Carpentaria Resources, and involved a fully underwritten private placement involving 54.3 million shares, as well as a 1-for-2.6 entitlement offer involving 183 million shares.
This has paved the way for Hawsons Iron to develop the bankable feasibility study (BFS) for its namesake iron ore project in New South Wales, which is on track for completion by the end of 2022.
Analysis conducted by geological experts H&S Consultants saw Hawsons Iron experience a nine per cent increase in indicated resources to 132 million tonnes (Mt) and an 18 per cent increase in inferred resources to 268Mt.
A pit optimisation study completed by KPS Innovation also determined Hawsons Iron’s economic pit shell to be significantly larger than what was identified through the 2017 prefeasibility study (PFS).
Hawsons Iron signed an equity funding agreement with LDA Capital in December 2021. As part of this deal, the company can draw down up to $200 million by issuing ordinary Hawsons Iron shares to the US investment group.
In February, the company expanded the scope of the Hawsons Iron project to include an option with a potential production capacity of 20 million tonnes per annum (Mtpa), an extra 10Mtpa from the project’s 2017 PFS.
The option will explore a direct-to-port underground slurry pipeline and port opportunities within the eastern Spencer Gulf of South Australia, with the potential to further improve the project’s environmental, social and governance (ESG) credentials.
To cap off Hawsons Iron’s recent achievements, the company this week acquired full ownership of its namesake project after purchasing the remaining 6.04 per cent interest owned by Starlight Investment Company for $10 million.
Hawsons Iron has an opportunity to play a major role in the world’s ‘green steel’ movement, with its Supergrade product (70 per cent iron [Fe]) poised to be one of the highest-grade Fe products on the seaborne market.
Having received letters of intent and potential offtake interest for 12Mtpa of its Supergrade product, and with significant momentum leading into the BFS, the sky’s the limit for Hawsons Iron.