Photo by: Beowulf
Aim-listed Beowulf is encouraged by Swedish Enterprise and Innovation Minister Ibrahim Baylan's decision to decline a meeting request by its CEO, on the basis that the proposed meeting concerned a “forthcoming government decision”.
The company, which has been fighting hard for an exploitation concession for the Kallak North iron-ore project, cites a letter by Baylan that explains that the government is unable to meet or comment with regard to its “ongoing review”.
"It is positive that Mr Baylan writes about a 'forthcoming decision',” said CEO Kurt Budge.
The company’s stock jumped 9% to 6.38p a share early on Friday morning, before retreating to 6.38p a share by 9:00.
"It's six-and-a-half years since the Kallak application was first submitted and it's widely recognised in Sweden that the company's application has been completely mishandled, and the case is rightly a focus for investors considering the feasibility of Swedish mining projects.
Budge said that he last week met with Jokkmokk mayor Robert Bernhardsson, who had made “strong comments” about the inaction of government in taking a decision on Kallak.
“Jokkmokk's economic challenges are acute and while Kallak presents a transformative opportunity for the town, and the town's resurgence, the government's job has not been made easier, because of the CAB's [County Administrative Board’s] flawed statement made in November 2017.
"However, the company is not looking backwards, and, as we appear to be moving towards a decision by the government, our discussions in Jokkmokk are about the future of Kallak and the town, working in partnership with the municipality, the community and the Sami reindeer herding community.”
Beowulf also reported that it had sought legal advice from a Stockholm law firm to review its Kallak application.
“The legal analysis is unequivocal, that the company has robustly argued its case for a concession to be awarded.”