A little-known ASX iron ore stock is bucking the broader market sell-down today.
Big time.
In afternoon trade on Tuesday, the All Ordinaries Index (ASX: XAO) is down a painful 2.0% amid global concerns over escalating tensions in the Middle East.
But that's not holding back this tiny mining stock, with investors heating up the buy button following a promising update on its iron ore project.
Shares in the ASX iron ore miner closed yesterday trading for 3.4 cents.
In earlier trade today, shares were changing hands for 5.7 cents apiece, up a whopping 67.6%. After some likely profit-taking, shares are trading for 4.8 cents at the time of writing, up 41.2%.
Any guesses?
If you said Hawsons Iron Ltd (ASX: HIO), give yourself a virtual gold star.
Here's what's piquing ASX investor interest.
Image source: Getty Images
What's sending the ASX iron ore stock surging?
The Hawsons Iron share price is flying higher after the company released an update on its Hawsons Iron Project.
This comes following a review of the results from work undertaken in response to the action plan recommended by the Strategic Review in February 2023.
Likely lifting the ASX iron ore stock today is the company's revelation that it has confidentially provided a detailed Information Memorandum (IM) with these results to seven potential strategic investors. This is aimed at helping fund the iron ore project's Bankable Feasibility Study (BFS).
The strategic investors, which include miners, trading houses and steel mills, were selected to undertake detailed due diligence appraisal for the BFS funding.
The miner also announced it has completed the Phase 2A Stantec testwork program and has confirmed and defined the base Phase 1 comminution flowsheet as well as the selection of major equipment for the project.
The high-grade magnetite concentrate will be transported to the Port of Adelaide by rail using existing transport infrastructure, which management said will significantly reduce upfront capital costs and project risk.
What did management say?
Commenting on the project update sending the ASX iron ore stock soaring today, Hawsons Bryan Granzien said:
We've completed the first stage of our strategic investor process and provided a copy of the IM, financial model and other associated documents to these parties who have qualified following initial presentations and discussions.
We aim to complete this strategic investor process within the next few months and commence work on the BFS immediately if successful.
Hawsons chair Jeremy Kirkwood said he was pleased by the potential partnerships for the project.
"This follows extensive work done by the Company that has set a solid foundation for such engagement after halting the previous BFS in October 2022," Kirkwood said.
Despite today's big lift, shares in the ASX iron ore stock remain down 20% over 12 months.
