London-listed Beowulf Mining has announced it will raise about £7.3-million to advance its portfolio of assets in Sweden, Finland and Kosovo.
The company will conduct an open offer of up to 225 841 752 new ordinary shares to qualifying shareholders at 3.16p a share on a pre-emptive basis to raise up to £7.3-million gross.
The exploration firm will also receive a further conditional subscription of 88 800 new ordinary shares to raise £2 806.
Holders of Swedish depository receipts (SDRs) will be able to participate in the offer by way of a rights issue of new SDRs with preferential rights of up to about K56.7-million, at a price of K0.370 a new SDR.
Beowulf has received underwriting commitments from certain Nordic investors for up to 80%, about K45.3-million, of the SDR rights issue.
Beowulf has also received presubscription commitments totalling about £87 000 regarding the open offer and additional subscription from certain members of the board and senior management.
Beowulf's priority remains the award of the exploitation concession for Kallak North. If the Swedish government approves the concession, with funding from the capital raising, the company's immediate plan is to complete a scoping study within 12 months, and in parallel plan for a prefeasibility study and initiate environmental permitting.
Work will continue on firmly establishing the resource upside, and the potential for a much longer life mining operation, beyond the 14 years included in the Kallak North application, which can support a long-life sustainable mining operation, high quality production and the economic future of Jokkmokk municipality.
Beowulf holds, through its 46.1% interest in Vardar, exploration licences for the Mitrovica and Viti projects in Kosovo.
In Finland, Beowulf is pursuing, through its wholly owned subsidiary, Fennoscandian, a strategy to develop a 'resource footprint' of natural flake graphite. With sufficient funding from the capital raising, by the end of 2021, Fennoscandian will have completed a scoping study for its Aitolampi project, and in conjunction with the scoping study, developed plans for test mining at Aitolampi to produce a bulk sample and the establishment of a pilot plant for producing spherical graphite for batteries and other high-value graphite products.