JOHANNESBURG (miningweekly.com) – Exploration company Beowulf Mining has raised £1.5-million for general working capital purposes and to support its graphite and magnetite activities.
The proceeds were raised at 5p a share, said Beowulf, which owns the Kallak magnetite iron-ore project and the Åtvidaberg polymetallic exploration licence in Sweden, as well as a graphite portfolio in Finland.
"It is disappointing to raise funds at a lower price than one year ago, a result of further delays in the Kallak permitting process, but we are very pleased to have completed this fundraising, which maintains our strong cash position, and enables us to keep investing and developing projects across Beowulf's three main business areas,” CEO Kurt Budge commented in a statement.
The funds will be used for a scoping study on the Aitolampi project, exploration and development activities across the graphite portfolio and drilling at Åtvidaberg. It will also be applied for exploration and development work at Kallak and the surrounding exploration licences, including application of passive seismic technology to define mineralisation at the Parkijaure licence and drilling, and landscape analysis of potential strategic partners/investors for the Kallak project.
Budge said that the upcoming general election in Sweden was likely to delay the decision on the exploitation concession. The company has invested 77-million Swedish krone in the Kallak project, near Jokkmokk.
"While we wait for the government to decide on our application, we are not sitting idle. I am excited with the progress we are making with both our graphite portfolio and with our Åtvidaberg licence, and we continue to look outside the company for merger and acquisition opportunities,” he added.