Beowulf raises $6m to help develop Swedish iron ore assets

Sweden-focused junior miner Beowulf Mining has raised £4.125 million ($6.14 million) to boost its cash position and fund further exploration at its Kallak iron ore project and Ballek copper-gold jv.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

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.

What to read next
Fastmarkets launches MB-CU-0513 copper cathode equivalent grade (EQ), cif Southeast Asia, $/tonne on Tuesday February 20.
Fastmarkets’ 2024 outlook for key raw materials and ingredients used in the production and distribution of fast-moving consumer goods
Weak demand continues to stem profitability and prevent capacity return in the European aluminium market, Norsk Hydro’s chief executives told Fastmarkets in an exclusive interview on Wednesday February 14.
The publication of Fastmarkets’ rand fixing prices for LME trade for Monday February 12 were delayed due to a technical issue.
The copper concentrate market was already tight, but the addition of major new smelting capacity this year – starting with the expansion of Freeport’s Gresik smelter in Indonesia — will likely mean maintenance breaks, capacity curtailments and potentially even closures while operating costs start to become untenable, Fastmarkets understands.
Major aluminium producers Alcoa, Rio Tinto and Century Aluminum have been accused of pocketing vast sums of money from the sale of aluminium products to the beverage industry in the US at inflated prices – and of potentially colluding to do so