Hawsons Iron Ltd (ASX:HIO) has engaged Citigroup (NYSE:C) Global Markets Australia Pty Ltd as its strategic advisory partner in the development of its namesake project near Broken Hill in New South Wales.
The company’s managing director Bryan Granzien said that Citi’s “unparalleled global network, corporate relationships and experienced team would deliver significant value as the company moved toward completion of the Bankable Feasibility Study (BFS) to de-risk its world-class project".
What’s more, Citi’s highly experienced global metals and mining network includes dedicated corporate advisors in all relevant jurisdictions including Australia, the Middle East, the United Kingdom, Canada, Korea, India, Japan and China.
Unique ESG opportunity
Granzien adds: “Our plan to produce high-grade magnetite concentrate represents a unique environmental, social and governance (ESG) opportunity to play an important role to decarbonise the global steel industry, within which Citi has strong client relationships.
“To ensure overall success in funding and development of the Hawsons Iron Project we believe it will be vitally important for all strategic partnering discussions to be funnelled through Citi as the single channel to manage third party interest.”
“Interest in Hawsons and its flagship project near Broken Hill in NSW was continuing to grow as international focus intensified on the future demand for high-grade iron products to produce 'Green Steel'.
“We’re in ongoing discussions with several potential Hawsons Supergrade® product off-takers regarding letters of intent and with a number of parties also interested in potential strategic opportunities to invest either directly in the company or the project,”
“Citi’s role will include managing this process and assisting the company to determine the right time to execute any agreements to maximise value for shareholders.”
About the project
The Hawsons Iron Project is situated 60 kilometres southwest of Broken Hill, New South Wales, Australia in the emerging Braemar Iron Province.
Notably, the prefeasibility 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% Fe), making it the world’s leading undeveloped high-quality iron ore concentrate and pellet feed project.
Furthermore, leading research firm Wood Mackenzie in Q2 FY2019 rated Hawsons as one of the world's best high-grade iron ore development projects.