Hawsons Iron Limited (HIO) has announced a Share Purchase Plan (SPP) aiming to raise up to $1.0 million. This initiative allows eligible shareholders in Australia and New Zealand to acquire additional ordinary shares in the company. The offer price is set at the lower of $0.020 per share, reflecting an 18% discount to the 5-day volume-weighted average price (VWAP) up to June 5, 2025, or an 18% discount to the 5-day VWAP up to the SPP’s issue date, expected around July 16, 2025. The Hawsons Directors intend to participate in the SPP.
The company intends to use the proceeds primarily to update the Prefeasibility Study (PFS), including Maiden Ore Reserves for the Project. Funds will also be allocated to investigate potential secondary products and optimize mine design, processing, and logistics. Hawsons had previously paused trading due to an approach from an international investment fund, but delays arose from changes within the fund’s structure. Despite this setback, Hawsons is in ongoing discussions with other strategic investors.
According to Hawsons Chairman, Jeremy Kirkwood, the SPP provides shareholders the first opportunity to participate. Critical path activities will be maintained via these funds, an updated PFS released (including Ore Reserves), and secondary products pursued, which will “put Hawsons in the best possible position to engage with Strategic Investors heading into the completion of the Definitive Feasibility Study phase”. The SPP’s record date was June 11, 2025, with the offer opening on June 23, 2025, and closing on July 11, 2025. Shares are expected to be quoted on the ASX on July 17, 2025.
Hawsons retains the discretion to adjust the SPP size or scale back applications pro-rata if oversubscribed. This move signals Hawsons’ commitment to advancing its iron ore project amidst evolving investor dynamics, seeking to solidify its position through strategic initiatives and shareholder engagement.
