Beowulf Mining has raised GBP 6.7 million in a share placing to fund its operations at the Kallak iron ore projects and a planned drilling campaign at the Ballek copper and gold JV project.
The company said that a third party has expressed interest in conducting due diligence and potentially acquiring part or all of its iron ore projects at Kallak and Ruoutevare.
The Swedish mineral explorer has placed a total 44.65 million shares at a price of 15 pence per share, representing 21.21% of Beowulf's enlarged issued share capital. The planned operations at the Kallak iron ore projects in Sweden include additional drilling, analysis and economic and environmental impact studies.
Earlier this week, Beowulf refuted press speculation that it was planning a share placing at 12 pence per share which would have represented a substantial discount to yesterday’s closing price of 17.88 pence per share. Investors cheered the update, sending shares in Beowulf up 13.5% to trade at 20.25 pence, valuing the company at EUR 33.55 million.
Brokerage Stockholm Corporate Finance AB which is regulated by the Swedish Financial Supervisory Authority, assisted with the Swedish aspect of the fundraising.
Beowulf said that it has entered into a letter of intent with a third party which has expressed an interest in conducting a comprehensive 6 month due diligence and analysis of its iron ore projects at Kallak and Ruoutevare. The party could potentially table a proposal to acquire a majority interest in or the whole of the company’s iron ore assets.
Shareholders should note that there can be no certainty that any proposal, on terms acceptable to the Board or otherwise will ultimately be received and a further announcement will be made if and when appropriate.
Last Friday, independent consultant GeoVista estimated the Kallak North resource to be 131.6 million tonnes grading 28% iron. The initial resource estimate is based on 800 meters of mineralized strike from a total 3.7 kilometers.
Beowulf currently does not have enough data to compile a maiden resource figure for Kallak South, which is expected to occur after the next phase of drilling. However the current data suggests the initial Kallak South resource could be in the order of 200 to 300 million tonnes. In total it is estimated that two Kallak deposits contain 600 million tonnes of iron ore.
At Ballek, which is also located in Sweden, the Lulepotten deposit currently has an inferred resource estimate of 5.4 million tonnes, grading 0.8% copper and 0.3 grams per tonne gold.
Mr Clive Sinclair Poulton executive chairman of Beowulf Mining said that "With continued strong prices coupled with the increasing demand for iron ore as a raw material in Europe and further afield we believe that further investment in drilling and analysis will demonstrate the quality and strength of our asset base."
(Sourced from www.proactiveinvestors.com.au)
