CAPITAL has been raised to lift the suspension of trading of Hawsons Iron Ltd.
At the start of the month, it was announced that Hawsons requested a trading halt of its securities with immediate effect, from prior to commencement of trading Friday, June 6 pending the release of an announcement with regard to a proposed capital raising.
Last week, Hawsons released that they were raising up to $1 million through a share purchase plan.
The proceeds of the raise will be used for undertaking works to provide an updated prefeasibility study (PFS), together with Maiden Ore Reserves for the company’s flagship project, which is 70 kilometres outside of Broken Hill, and further investigation into potential secondary products and flow on optimisation of mine design, processing and logistics.
“A trading halt was requested on the basis of an approach from an international investment fund for a possible placement of shares in Hawsons,” company chairman Jeremy Kirkwood said.
“Since then, the fund has initiated a change in their ownership and management structure which has resulted in a delay to their process.
“Hawsons continues to advance discussions with other strategic investors who have expressed interest in the company and/or the project.
“As a result, the board has determined that it needs more time to determine the best path forward for the best interests of shareholders.”
These funds will allow the company to maintain momentum by carrying out critical path activities and releasing an updated PFS (including ore reserves), Mr Kirkwood said.
“Further work into potential secondary products and flow on optimisations of mine design, processing and logistics which will put Hawsons in the best possible position to engage with strategic investors heading into the completion of the definitive feasibility study phase.”
