Hawsons Iron Ltd (ASX:HIO) has now acquired 100% of the Hawsons Iron Project after closing out the buyout of Starlight Investment Company Pty Ltd’s 6.037% interest in the project.
HIO paid Starlight $10 million for its interest in the joint venture, including a final payment within six months of the execution date of $2 million which released Starlight from its JV duties and simplified the project structure, along with HIO’s decision-making process and flexibility.
Hawsons is focused on developing its flagship project near Broken Hill into a premium provider of high‐quality iron ore products for the global steel industry. With 100% ownership, it can now concentrate fully on doing so.
Important milestone
“This strategically important transaction has simplified ongoing management of the bankable feasibility study and opened all avenues for the company to move forward, including the future consideration of strategic joint venture partners,” HIO managing director Bryan Granzien said.
A security charge held over the project’s assets will be released by Starlight following final settlement of the transaction.
The project is just 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% Fe), making it the world’s leading undeveloped high‐quality iron ore concentrate and pellet feed project.
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.