Beowulf Mining to enhance operations with £1.5m from placing

Specifically, the AIM-traded company will use the proceeds to fund the exploration, drilling and further development of the Kallak magnetite iron ore project in Sweden, which the company has already invested £42.8m.

The new shares will bring the company’s total shares to 566.3m.

Kurt Budge, chief executive of Beowulf Mining, said: "It is disappointing to raise funds at a lower price than one year ago, a result of further delays in the Kallak permitting process, but we are very pleased to have completed this fundraising, which maintains our strong cash position, and enables us to keep investing and developing projects across Beowulf's three main business areas."

Beowulf has recorded no revenue in the last two years and in 2017 the company’s pretax loss widened by 58% to £1m due to impairments and higher administrative expenses.

Beowulf's pretax loss widened to £1m in 2017 from £633,229 the year before due to impairments and higher administrative expenses and it recorded no revenue in either 2017 or 2016.

“While we wait for the government to decide on our application, we are not sitting idle. I am excited with the progress we are making with both our graphite portfolio and with our Atvidaberg licence, and we continue to look outside the company for merger and acquisition opportunities,” said Budge.

As of 1615 BST, Beowulf Mining’s shares were down 15.91% at 5.55p.