Hawsons Iron Ltd (ASX:HIO) has completed an institutional placement to Regal Funds Management to raise $5 million.
The company issued 62.5 million new ordinary fully paid shares at an issue price of $0.08 a share for working capital.
The placement price represents a 27.27% (rounded down) discount to Hawsons’ 15-day VWAP of $0.11 calculated at the last closing price on Friday, November 25, 2022.
Managing director Bryan Granzien said the pricing discount required to successfully complete the placement reflected the difficult equity market conditions and prevailing investor sentiment.
“Importantly, securing these funds provides working capital to enable us to complete our strategic review of options for scaling up development of our flagship Hawsons Iron Project and recommence work on a revised Bankable Feasibility (BFS) based on a new approved start-up tonnage,” he said.
The number of fully paid Hawsons shares on issue has increased from 733,567,950 to 796,067,950.
Regal Funds has an interest in Hawsons of approximately 7.85%.
About Hawsons
Hawsons is an iron ore developer and producer, focused on developing its flagship Hawsons Iron Project near Broken Hill into a premium provider of high-quality iron ore products for the global steel industry.
The Hawsons Iron Project is 60 kilometres southwest of Broken Hill, New South Wales, in the emerging Braemar Iron Province.
Pre-feasibility Study (PFS) results for the project, which was completed in 2017, showed that it is capable of producing the world’s highest-grade iron product (70% iron), making it among the world’s leading undeveloped high-quality iron ore concentrate and pellet feed projects.
Leading research firm Wood Mackenzie in Q2 FY 2019 rated the project one of the world's best high-grade iron ore development projects, excluding replacement or expansion projects owned by the established miners.