31st May 2016 10:45
LONDON (Alliance News) - Beowulf Mining PLC on Tuesday said its focus remains on securing the exploitation concession for its Kallak magnetite iron ore project in Sweden after delays continued throughout its first quarter, but said it is also looking to create a diversified portfolio through adding further projects.
The miner operating within Scandinavia said the delays in getting its exploitation concession were a "frustration" both for its supporters in its Jokkmokk Iron Mines subsidiary who want to see continued investment and for its Swedish and UK shareholders who have funded the project.
The mining inspectorate of the country recommended the concession for the project should be awarded to the company around eight months ago, but neither the Swedish government nor the minister for enterprise and innovation has issued any response to the company since.
Once the concession for Kallak North has been secured, Beowulf plans to find a partner to introduce to the asset.
"It is important that all our stakeholders recognise that our application has met the requirements of the Swedish regulations for this stage of permitting, and if that means a further review to demonstrate this, given the recent Swedish court decision, then we are fit to meet that challenge," said Chief Executive Kurt Budge.
"Widening the scope of review now, is bringing forward aspects that would have previously been considered during environmental permitting, but which have already been reviewed in full by the County Administrative Board for Norrbotten. The extra time taken now to award the concession, provides us with an opportunity to further demonstrate our responsible approach to the development of Kallak," Budge added.
However, Beowulf Mining added that it is also looking to create a diversified portfolio and purchased Oy Fennoscandian Resources AB in January, which has a portfolio of four early-stage graphite exploration projects in Finland. A further project was added to the portfolio in March, within the prospective Kolari graphite district.
The company began fieldwork on two of its graphite projects in March 2016, conducting geophysical surveys at Piippumaki and Haapamaki, Beowulf Mining said.
Beowulf also has applied for two new exploration prospects in Sweden after having identified new targets in a regional geophysical desktop study.
During the three month period ended March 31, Beowulf Mining said its pretax loss widened to GBP167,000 from GBP154,000 for the same period a year earlier, as it was hit by foreign exchange losses coming from the strengthening Swedish kroner as well as higher legal fees related to its efforts to secure the Kallak exploitation concession.
Beowulf Mining is not revenue producing, with the widened pretax loss purely relating to higher administrative expenses.
"While securing the exploitation concession for Kallak remains the main focus of management, we are creating a diversified, Nordic focused exploration and development company, with new projects being added to the portfolio, providing additional value creation opportunities," said Budge.
Shares in Beowulf Mining were down 2.1% at 3.67 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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