Carpentaria raises cash for Hawsons BFS

The share placement, consisting of 54.3-million shares priced at 15c a share, will be placed in two tranches, with the first tranche of 13.3-million to raise A$2-million under the company’s existing placement capacity.

The second tranche placement of 41-million shares, to raise a further A$6.15-million, will be subject to shareholder approval at a meeting scheduled for August 16.

In addition to the share placement, Carpentaria would also undertake a 1-for-2.6 underwritten entitlement offer of some 183-million shares, to raise a further A$27.5-million.

“It is extremely encouraging that the company has received such strong institutional support to carry out the Hawsons bankable feasibility study,” said executive chairperson Bryan Granzien.

“We are now in the strong position of not requiring funding from potential offtake partners at this stage, which will enhance the company’s position in any future offtake arrangements. We have worked hard over the last six months to secure this strong commercial position prior to any offtake agreements, which in the end should result in the most favourable offtake terms to the company and shareholders.”

Granzien said that following the capital raise, Carpentaria would have a clear path to complete a BFS for Hawsons, which the company was confident would further demonstrate the project as one of the world’s best undeveloped iron-ore projects.

“Hawsons will help satisfy the ever-growing demand for high quality iron-ore products. In a world that is transitioning towards greener steelmaking, Hawsons' Supergrade product will be highly sought after to reduce carbon dioxide emissions and create green steel,” he added.

A prefeasibility study into the Hawsons project estimated that the 10-million-tonne-a-year operation would have a post-tax net present value of $867-million and an internal rate of return of 17.8%. Revenues of $881-million a year and average earnings before interest, taxes, deprecation and amortisation of $401-million a year were expected, based on an iron-ore price of $63/t.