TIDMBEM
Beowulf Mining PLC
19 December 2019
19 December 2019
Beowulf Mining plc
("Beowulf" or the "Company")
Management Update
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, provides a management update on the Company's
application for an Exploitation Concession for the Kallak Iron Ore
Project ("Kallak"). The CEO has written again to Mr. Ibrahim
Baylan, the Minister of Enterprise and Innovation.
In the letter to the Minister, the CEO made the following
points:
-- Two and half months have passed without any new information
on what is happening, since the Minister wrote in his letter, dated
30 September 2019, that a decision by the Government on Beowulf's
application was 'forthcoming'. The CEO has requested that the
Government provide Beowulf with details on when the Company can
expect the decision on Kallak to be taken.
-- It seems evident that the coalition Government has been
struggling to reach consensus on Kallak and that politics are
standing in the way of a decision being taken. Yet, we have heard
before, from the Government, that Swedish law is sufficient for
assessing the Kallak application and that any assessment of Kallak
should be 'by the book'.
-- To ensure that the Government has been provided with all
relevant facts, the Company submitted a concluding statement for
Kallak to the Government on 8 November 2019, prepared by the law
firms Mannheimer Swartling and Fröberg & Lundholm. The
statement summarised all circumstances relevant to a judicial
review of whether the Company should be awarded the Exploitation
Concession for Kallak. The statement demonstrates that the
Government has sufficient facts for an Exploitation Concession to
be awarded.
-- Sweden's attractiveness as a destination for investments in
mining has been decreasing over several years. Mining analysts and
journalists continue to comment on the inability of its authorities
to decide on mining applications, while having allowed companies to
explore for minerals and make significant investments.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"The Minister's comments at the recent SveMin Höstmöte look to a
future when permitting procedures in Sweden are predictable, but
they provide no comfort to already committed mining investors and
specifically Beowulf's shareholders.
"I read yesterday that the Minister, in response to a question
from a fellow politician, has stated that the starting point for
the Government's handling of an application 'is always that it
should be done quickly, efficiently and without compromising legal
certainty'.
"The Government's handling of the Kallak application, since the
summer of 2017, has been neither quick nor efficient, and is a
'black cloud' over Beowulf's share price. It makes equity fund
raising more costly and is damaging the value of the 64.76 per cent
of Beowulf owned by Swedish shareholders and the remainder of the
Company owned by UK shareholders.
"The legal certainty that the Government seeks is contained
within the concluding statement sent by Beowulf to the Government
in early November.
"The Board has noted Aura Energy's ("Aura") written notification
to the Swedish Government under the Energy Charter Treaty seeking
compensation over the uranium ban introduced in Sweden on 1 August
2018 and the financial loss to Aura resulting from this decision.
An example of the goalposts being moved after a company has made a
significant investment in developing a mineral project.
"In the Kallak case, the Minister has commented on there being
'several different national interests.'
"In the County Administrative Board's ("CAB") assessment in July
2015, it stated that there are no conflicts within the Kallak
Concession area where national interests are considered, as the
Concession area is designated as an Area of National Interest for
minerals. No other national interests were identified.
"This remained the case until Sametinget placed national
interest for reindeer herding directly on top of Kallak in February
2017, 11 years after Beowulf acquired its first exploration licence
and had invested the majority of the SEK 80 million spent on
Kallak.
"As we have repeatedly stated, it is not a case of mining or
reindeer herding, as both can prosper, as they already do across
Sweden where industry and reindeer herding interact. Kallak will be
no different. That is Beowulf's commitment.
"If the Government sticks to the facts then the Concession
should be awarded. The Kallak application has been assessed to the
absolute limit and there should be no need for further
deliberation.
"I look forward to keeping the market updated on further
developments."
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771
Officer 6993
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Soltan Tagiev Tel: +44 (0) 20 3470
0470
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138
3204
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to , (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecasts.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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