Hawsons Iron Ltd (ASX:HIO) has completed a share purchase plan (SPP) for $1 million taking total capital-raising proceeds to $8.8 million following an earlier $7.8 million institutional placement.
Proceeds for bankable feasibility study
Net proceeds from the placement and SPP will be channelled towards working capital and will fund the action plan of a strategic review, which supports a modified bankable feasibility study (BFS) for the Hawsons Iron Project near Broken Hill in Far West New South Wales, based on the production of 11 million tonnes per annum.
Chairman Dave Woodall thanked shareholders who supported the SPP and subscribed for almost half the available shares on offer.
“We now have the funds required to complete the value engineering analysis and the first two stages of the resource definition program recommended by the strategic review, and to undertake preparatory work to restart activity on a modified BFS when required,” he said.
“Work on the value engineering analysis is already well advanced, as are plans to engage an experienced drilling contractor with Hawsons targeting higher grade ore at shallower depths from 30-150 metres.”
Shares to be allotted
The SPP closed on Monday, February 27, and the maximum of 12,987,013 new ordinary fully paid shares will now be allotted.
A total of 82 valid applications were received to subscribe for 5,833,471 shares at an offer price of $0.077, the same offer price as the institutional placement, to raise $449,172.
These new ordinary fully-paid shares will be allotted and commence trading today.
The balance of $550,823 has been taken up by institutional investors and these 7,153,542 new ordinary fully-paid shares will be allotted on Wednesday.
Holding statements for the new SPP shares, excluding those taken up by the institutions, will be despatched to successful applicants today.
The allotment of the SPP shares follows completion of the placement of 100,842,199 shares to institutional investors on February 10, which raised $7.8 million before costs.