Hawsons Iron Ltd (ASX: HIO) has launched a Share Purchase Plan (SPP) to raise up to $1 million, aiming to accelerate development of its flagship Hawsons Iron Project located 70km southwest of Broken Hill, New South Wales. The capital raise is part of the company’s strategic move to update its Prefeasibility Study (PFS) and define a maiden ore reserve.
Project Location
Discounted Share Offer Opens 23 June
Under the plan, eligible shareholders will be able to acquire new shares at a price of $0.02 per share — a 17% discount to Hawsons’ last traded price of $0.024 on 5 June and an 18% discount to the five-day volume weighted average price (VWAP). The SPP is scheduled to open at 9:00am AEST on 23 June and close at 5:00pm AEST on 11 July, with new shares expected to be issued on 16 July.
The company initiated the raise after receiving interest from an investment fund for a share placement. However, due to internal structural changes within the fund, the proposed placement has been delayed. In the meantime, Hawsons opted to proceed with a shareholder-based capital raise to maintain development momentum at its namesake project.
Funds to Support Updated PFS and Maiden Reserve
Funds raised will primarily support completion of an updated PFS, which incorporates recent technical advances, including a revised dry comminution test program and mineral resource variability studies. These developments have significantly improved the company’s confidence in the viability of a dry processing circuit, which could offer major environmental and operational benefits.
The dry processing approach is particularly important in the context of water scarcity in the region and aligns with broader global objectives to decarbonise the steelmaking process. A dry circuit would minimise water consumption and tailings production while improving operational safety and maintainability.
📰After receiving interest from an investment fund, @HawsonsIron $HIO is raising up to $1 million to expedite activities at its namesake project in New South Wales.
Read about it here: https://t.co/rjAu6pUFag#miningnews #asx #exploration #capitalraise #resources #mining
— Mining.com.au (@miningcomau) June 13, 2025
Shares Surge on Project Momentum
Following news of the updated testwork, Hawsons’ share price experienced a notable rally — rising to $0.028 in early June, more than doubling in value over four trading sessions. This surge reflects investor optimism around the project’s technical progress and its potential to become a major supplier of high-grade magnetite concentrate for low-emission steel production.
Hawsons Iron is using the updated data to refine process design criteria, support the definition of a maiden ore reserve, and ultimately prepare for a Definitive Feasibility Study (DFS). The DFS will include further assessments of product options, including the commercial potential of producing hematite and silica sand by-products.
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Exploring Value-Adding By-Products
The company plans to explore these by-product opportunities over the next six to twelve months as part of a broader strategy to enhance project economics and reduce development risk. The potential production of silica sands, in particular, opens access to high-demand markets such as construction and glass manufacturing.
Iron Site
One of the World’s Largest Magnetite Resources
Currently, the Hawsons Iron Project hosts a JORC-compliant resource of 4.4 billion tonnes of magnetite — positioning it among the world’s largest undeveloped high-grade iron ore projects. The resource is considered ideal for use in Direct Reduction Iron (DRI) processes, which are central to the steel industry’s efforts to reduce greenhouse gas emissions.
@HawsonsIron is raising up to $1 million through a share purchase plan.
Read the full announcement here https://t.co/BipsVMAnEI pic.twitter.com/DU1fpfjEb8
— HawsonsIron (@HawsonsIron) June 13, 2025
In addition to its current resource base, the project offers significant exploration upside. Hawsons has identified potential for resource expansion to the south, east, and west, which could further increase scale and mine life as the project progresses toward development.
Chair Highlights Shareholder Opportunity
Chair of Hawsons Iron, Bryan Granzien, said the company was pleased to offer this opportunity to shareholders and was confident the capital raise would provide the necessary funding to meet near-term objectives.
“This SPP provides our loyal shareholders an opportunity to support the next stage of the Hawsons Iron Project,” said Granzien. “With the momentum we’ve built and the strong interest in sustainable steel supply chains, this funding ensures we can keep pushing forward with confidence.”
Supporting the Global Shift to Green Steel
The company’s commitment to dry processing and green steel aligns with evolving market demands and environmental regulations. Hawsons continues to engage with stakeholders, regulators, and potential offtake partners to build a development framework that meets the highest standards of environmental responsibility and commercial viability.
Analysts note that while global iron ore markets have been volatile, demand for high-grade, low-impurity magnetite is expected to increase significantly over the next decade as steelmakers pivot to cleaner production methods. Projects such as Hawsons could play a critical role in securing future supplies of premium-grade feedstock.
Path Forward: From Explorer to Developer
With the share offer now open and technical progress well underway, Hawsons Iron appears well-positioned to transition from explorer to developer. The next phase will be critical as the company seeks to finalise its PFS, secure strategic partnerships, and move closer to construction readiness.
