TIDMBEM
RNS Number : 9808V
Beowulf Mining PLC
13 August 2020
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
13 August 2020
Beowulf Mining plc
("Beowulf" or the "Company")
Financing of SEK 12 million (approximately GBP1.0 million)
secured from Nordic investors and GBP300,000 invested in Vardar
Minerals' geophysics programme
Beowulf (AIM: BEM; Spotlight : BEO), the mineral exploration and
development company, is pleased to announce that the Company has
secured loan financing in Sweden of SEK 12 million (approximately
GBP1.0 million) before expenses (the "Loan").
Funds will be used to restart exploration works in Kosovo, with
the initial focus being geophysical surveys across the emerging
Majdan Peak epithermal gold target, the objective being to define
drill targets. Plans have also been made for geophysics surveys
over the remainder of the Mitrovica licence and the Viti licence,
prospective for copper-gold porphyry mineralisation.
Regarding Majdan Peak, the Company recently announced, on 1 June
2020, extremely encouraging results from a soils sampling
programme, and on 6 July 2020, a number of grab samples returning
high-grade gold results, which correlated well with gold in soils
and alteration intensity and confirmed the significant scale of the
gold target, an area 1400 x 700 metres, remaining open to the
east.
The Company's investment of GBP300,000 increases its ownership
of Vardar from 42.2 per cent to 46.1 per cent.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"At a time of record high gold prices, Beowulf is delighted to
announce the resumption of works at Majdan Peak, as the Vardar team
seeks to define targets for drilling.
"It's a major benefit for Beowulf to be listed in Stockholm and
London. I am very pleased that the Company has been well-supported
by Nordic investors in this financing. Not only does Beowulf have a
strong asset base in Sweden, with Kallak, we are finding ways to
effectively raise finance by virtue of our Stockholm listing. We
have been eager to progress in Kosovo and this fundraise allows us
to really get going.
"Beowulf has been busy over recent months. Fennoscandian
Resources has been developing its business plan to strengthen its
position in the emerging battery sector in Finland and, in Sweden,
we have been reassessing the exploration and resource expansion
potential at Kallak and we are also considering new processing
options for Kallak ore.
"We have significant activity in each of our business areas and
a full work programme as we continue with the year. I look forward
to keeping shareholders updated on our progress."
The Loan - Key Terms
Loan financing of SEK 12 million before expenses has been
secured from Nordic investors, Formue Nord Markedsneutral A/S and
Modelio Equity AB (the "Creditors"). The Loan has a fixed interest
rate of 1.5 percent per started 30-day period during the duration
period. Accrued interest is non-compounding. The Loan has a
commitment fee of 5 per cent and a Maturity Date of 15 January
2021.
Beowulf can repay the Loan and accrued interest at any time
prior to the Maturity Date. If the Loan and accrued interest is not
repaid by 15 February 2021, at the latest, the Creditors have the
right to convert the Loan and accrued interest into Swedish
Depository Receipts ("SDR") at a price per SDR calculated with a 10
per cent discount on the volume weighted average price ("VWAP") of
the SDR during the preceding 5 trading days to the conversion
decision. Prior to entering into the Loan, Beowulf had no short or
long-term interest bearing debt.
Swedish Financial Advisor
Sedermera Fondkommission has been the Swedish financial advisor
to Beowulf in connection with the loan financing.
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
About Beowulf Mining plc
Beowulf's strategy is to build a sustainable and innovative
mining company, which creates shareholder value by developing
mining assets, delivering production and generating cash flow, and
in so doing meets society's ongoing need for minerals and
metals.
Beowulf is developing a high-quality asset base, which is
diversified by geography and commodity, enabling it to
simultaneously advance several projects.
Additionally, the Board of Directors continues to look beyond
the Company for opportunities that fit.
The Company's first priority remains the award of the
Exploitation Concession for Kallak North, and thereafter completing
the Scoping Study. The introduction of a strategic partner/investor
who understands the value of Kallak as a high-quality asset, which
could be in production within four to five years, is an ongoing
consideration, but does not preclude the Company from continuing to
advance Kallak in the meantime.
Fennoscandian Resources ("Fennoscandian"), the Company's 100 per
cent owned graphite business, is pursuing a strategy to develop a
'resource footprint' of natural flake graphite prospects that can
provide 'security of supply' and enable Finland to achieve its
ambition of self-sufficiency in battery manufacturing. The Company
is a recipient of Business Finland funding, which is supporting
Fennoscandian to move downstream, and develop its knowledge in
processing and manufacturing value-added graphite products.
The Company owns approximately 46.1 per cent of Vardar Minerals
Limited ("Vardar"), a UK registered exploration company with a
focus on the metal endowed Balkan region. Vardar holds exploration
licences for the Mitrovica and Viti projects. Both projects are
located within the Tethyan Belt, a major orogenic metallogenic
province for gold and base metals which extends from the Alps
(Carpathians/Balkans) to Turkey, Iran and Indochina, and contains
several world class discoveries. The Tethyan Belt of south-east
Europe can be regarded as Europe's chief copper-gold
(lead-zinc-silver) province.
Glossary:
Induced Polarisation (IP) - Variations in chargeability can be
diagnostic, for example, when aiming to characterize a mineral
deposit (e.g. Mt. Isa), where the chargeability of the mineralized
zone is often higher than the host rock. Often an induced
polarization (IP) experiment is performed with the Direct Current
Resistivity (DCR) hence they are often called DC-IP survey. Both
conductivity and chargeability distribution can be recovered from a
DC-IP survey.
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.
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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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