|Beowulf Mining plc
(“Beowulf” or the “Company”)Subscription in Sweden and the UK to raise approximately £1.0 million
Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company focused on the Kallak magnetite iron ore project and the Åtvidaberg polymetallic exploration licence in Sweden, and its graphite portfolio in Finland, is pleased to announce a subscription for new ordinary shares to raise approximately £1.0 million before expenses (the “Subscription”).
Background to the Subscription and Use of Proceeds
With the increased level of ownership and market liquidity in Sweden, the Company recently engaged Stockholm Corporate Finance (“SCF”) as its financial adviser, to investigate the potential for raising funds from Swedish investors and, as a result, Beowulf has raised approximately £860,000 (before expenses).
On completion of the current fundraising the percentage owned by Swedish shareholders will increase to 51.50%.
In addition, the Company has raised an additional £140,000 in the UK to complete the £1.0 million raise.
The funds will be used for:
· exploration and development activities on the Company’s graphite projects, including a 2,000 metre drilling programme at Haapamäki, Pitkäjärvi and Aitolampi, sampling, assays, metallurgical testwork, resource definition and a preliminary economic study;
· a desktop review of the recently discovered historical archive of information on some of Beowulf’s brownfield exploration targets at Åtvidaberg, in support of further geophysics later in the year;
· a Scoping Study on the Kallak North project, to be conducted after the award of the Exploitation Concession; and
· general working capital purposes.
Details of the Subscription, Issue of Equity and Total Voting Rights
Pursuant to the Subscription, the Company will also issue to UK investors 3,333,333 new ordinary shares (the “UK Subscription Shares”) (the Swedish Subscription Shares and the UK Subscription Shares together referred as the “Subscription Shares”) to raise approximately £140,000 (before expenses) at a price of 4.2 pence per new ordinary share.
Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM on or around 22 December 2016 (“Admission”). The Subscription Shares will rank pari passu with the existing ordinary shares.
Following Admission, and in accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, the Company hereby announces that it will have 502,630,331 ordinary shares of £0.01 each in issue, each share carrying the right to one vote. The Company does not hold any ordinary shares in treasury.
Following Admission, the above figure of 502,630,331 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
“It is an important milestone for the Company to have raised funds in Sweden, and now over half the Company is owned by Swedish investors.
“It is therefore important to reflect on the progress that we have made over the last two years, which began in early 2015, with Beowulf voicing the approach of new management; one of respect for our stakeholders; becoming a local partner; and delivering responsible development. Later that year, the Company also gained the support of the County Administrative Board and the recommendation of the Mining Inspectorate of Sweden for our Kallak North application.
“More recently, we have been hearing and reading positive statements, made by key stakeholders in Jokkmokk, regarding the potential of Kallak and have now completed a £1.0 million fundraising (before expenses), which was 86% funded by Swedish investors.
“Beowulf is committed to building a modern and sustainable mining business, in partnership with our stakeholders and with the support of our shareholders; Sweden is a great place to do just that.
“We finish 2016 with sufficient funds to enable us to get straight to work in January 2017. It will be another busy year.
“All of us at Beowulf would like to wish our stakeholders and shareholders a Merry Christmas and a Happy New Year.
”God Jul och Gott Nytt År”
Beowulf Mining plc
Stockholm Corporate Finance
|About Stockholm Corporate Finance
Stockholm Corporate Finance is a Swedish, independent and privately owned financial advisor offering qualified transaction based advisory services by acting in capital raisings, changes in ownership, acquisition, merger and acquisitions (M&A) in listed and privately held companies. Stockholm Corporate Finance is the exclusive Swedish partner in the global network of M&A Worldwide consisting of 44 M&A advisors and investment banks in 38 countries. Stockholm Corporate Finance is an investment firm which is supervised by the FSA and is a member of the trade organization SwedSec Licensing AB.www.stockholmcorp.se