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Beowulf raised the funding, which includes an equity swap agreement, through subscription of 28,694,000 new ordinary shares of 1p each in the company’s capital and a conditional subscription of 37,306,000 shares, both at 6.25p ($0.09) per share, it said on Wednesday July 10.

“The structure of the fundraising and associated swap arrangements is designed to provide additional financing to accelerate our planned explorations,” chairman Clive Sinclair-Poulton said. 

The company posted a 144.1 million tonne indicated and inferred maiden JORC resource at its Kallak North iron ore deposit in April, developed by its Swedish subsidiary Jokkmokk Iron Mines. 
 
“We are working on increasing the JORC of Kallak North, have started test mining [there], and have started drilling at Kallak South,” Sinclair-Poulton told Steel First on Wednesday July 10. 

The London-listed company’s new institutional investor Lanstead Capital took the whole of the initial subscription and a majority of the conditional subscription for a total of £4 million ($5.96 million).

Beowulf’s broker Cantor Fitzgerald Europe took the remaining conditional subscription shares.

Part of the funds raised will be used for exploration and working capital, while £3.2 million ($4.77 million) of Lanstead’s share subscription will be used for investment in an equity swap agreement to boost cash resources.

The conditional subscription is subject to approval at a general meeting.