Iron and polymetal explorer Beowulf Mining has raised £1m in equity in order to develop projects in Sweden.
The £1m that will be raised will be added to the £140,000 already gained from investors in the UK and the £860,000 from investors in Sweden.
At the beginning of December the company was 49.52% owned by Swedish shareholders, after ownership in the country more than tripled over the last two years, which resulted in shares also trading on Sweden’s borse AktieTorget.
The company said due to this increased market liquidity in Sweden it brought on Stockholm Corporate finance as broker to raise the £860,000 from investors in the country, which increased the shareholding to 51.5%.
The funds will be used for exploration and development activities on graphite projects, including a 2,000 metre drilling programme at Haapamäki, Pitkäjärvi and Aitolampi.
It will also be used for a review of the recently discovered historical archive of information on some of Beowulf’s brownfield exploration targets at Åtvidaberg, in support of further geophysics later in the year, and a scoping Study on the Kallak North project, to be conducted after the award of the exploitation concession.
The £140,000 was raised through a subscription of 3.33m shared at 4.2p and the £860,000 was raised through 20m shared at 0.5 SEK. The subscription shares are expected to be admitted to trade on AIM on Thursday.
Following admission, the company will have 502.6m shares of 0.1p in issue, with voting rights.
Chief executive, Kurt Budge, said since 2015 the company has becoming a local partner, delivers responsible development, and also gained the support of the County Administrative Board and the recommendation of the Mining Inspectorate of Sweden for the Kallak North application.
“More recently, we have been hearing and reading positive statements, made by key stakeholders in Jokkmokk, regarding the potential of Kallak and have now completed a £1m fundraising, which was 86% funded by Swedish investors. Beowulf is committed to building a modern and sustainable mining business, in partnership with our stakeholders and with the support of our shareholders, Sweden is a great place to do just that.”