21st Aug 2014 09:37
LONDON (Alliance News) - Beowulf Mining PLC shares were lower on Thursday after the company announced a discounted share placing to raise GBP2 million, though it also gave an upbeat update on its Kallak North and Kallak South iron ore projects in northern Sweden.
The miner's shares were down 12% to 3.09 pence on Thursday, putting it among the biggest losers on the AIM All-Share index.
The fundraising plan it outlined Thursday includes a placing, subscription and open offer. It will place 20 million shares with institutional and other investors at 3 pence per share in order to raise GBP0.6 million. The pricing was set at a discount to Beowulf's closing price on Wednesday of 3.3 pence per share.
The group will also raise GBP1 million through a subscription agreement with Lanstead Capital LP, its largest shareholder, and will offer a further 13.3 million shares via an open offer to raise GBP0.4 million.
Meanwhile, Beowulf also said it has received promising assay results from the first four holes at the Kallak North site, with one inclined hole showing an average 30.7% iron content and another section of the same hole showing 41.2% iron content.
At Kallak South, it reported one of the seven holes drilled at the site showed 26.4% average iron content. It also said its Ballek copper project has identified targets with the presence of notable copper grades in all drilled holes at the site.
By Sam Unsted; [email protected]; @SamUAtAlliance
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