Beowulf Mining raising £0.5m via subscription

Mineral exploration and development company Beowulf Mining announced a subscription for new ordinary shares on Thursday, to raise £0.5m before expenses.

The AIM-traded firm said the funds would be used for general working capital purposes, as well as legal advice in respect of the Kallak North application and give it “financial flexibility” to support Vardar Mineral's plans for the Mitrovica and Viti Projects in Kosovo.

Under the subscription, the company said it would issue 9,090,909 new ordinary shares at a price of 5.5p per new ordinary share.

It said it held approximately £0.79m in cash as at 30 September.

Application had been made to the London Stock Exchange for the subscription shares to be admitted to trading on AIM on or around 28 October, the board confirmed.

“Markets remain challenging for junior natural resource companies, and further uncertainty is created by Brexit, so it is good to have raised funds and modestly strengthen the Company's cash position,” said chief executive officer Kurt Budge.

“In Sweden, we continue to work with legal advisers regarding our Kallak application, as we wait on a decision from the Swedish Government, and with the recent award of the Parkijaure nr 6 Exploration Licence we are investigating the potential for additional iron ore resource around Kallak.

“Also, we are discussing with Vardar the next steps for the Mitrovica and Viti projects in Kosovo.”