20th Aug 2019 12:41
(Alliance News) - Beowulf Mining PLC on Tuesday said its loss narrowed slightly in the first half of the year, but the company still waiting for a government decision on its Kallak mine in Sweden.
Shares in Beowulf were down 4.4% at 5.50 pence in midday trading.
Beowulf's pretax loss for the six months ended June 30 was GBP434,626, 1.7% below the GBP442,238 loss recorded the year before. This was due to a reduction in share based payment expense to GBP66,588 from GBP97,423.
Beowulf has been seeking a concession for Kallak for several years but has been held up due to the status of reindeer herding in the region.
In April, Beowulf said it would be reasonable to expect a decision on Kallak before the summer but this has not occurred.
Chief Executive Kurt Budge said: "This statement was based on the extensive consultation work undertaken by the government before the Swedish election process got underway in spring 2018, and allowed time for the new government, formed in January this year, to 'get up to speed'.
"Despite the government's acknowledgement that the company has been waiting an excessive period of time for a decision, we are still waiting, and with the holidays in Sweden coming to an end the company will be contacting the government to understanding the causes of this further delay. The board continues to keep in mind all options at its disposal for encouraging a decision."
In April, Beowulf raised GBP750,000 from a 13.6 million share subscription in order to make a follow-on investment in Vardar Minerals Ltd. Beowulf's current stake in Vardar is 38%, having been 14% before the subscription. It has the option to raise its interest to 40% by spending another GBP115,000.
Budge said: "The funds invested in Vardar have been put to good use, with drilling and other exploration activities continuing through the summer.
"We have a busy period to the end of the year. If we get a positive decision on the concession for Kallak, for which we have done everything required, that will kick-start the project and multiple workstreams for the company. We are prepared and waiting to get going."
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