9th Jul 2015 13:12
LONDON (Alliance News) - Beowulf Mining PLC shares plummeted Thursday after it said it has raised GBP650,000 after conducting a placing and subscription.
The miner placed 49.6 million new shares and the company's chief executive and chairman subscribed to 2.4 million new shares. Both were completed at a price of 1.25 pence per share.
Beowulf shares were down 35.6% to 1.40 pence per share, the worst-performer on the AIM market.
Chief executive Kurt Budge subscribed to 1.2 million new shares, increasing his total holding to over 2.2 million shares which represents a 0.524% stake in Beowulf whilst Chairman Bevan Metcalf subscribed to 1.2 million shares, upping his holding to under 2.2 million shares representing a 0.505% stake.
In addition to the placing and subscription, Beowulf issued 617,284 new shares to Beaufort Securities Ltd at a price of 2.025 pence for broker fees incurred over the last six months.
"With limited cash Beowulf has been able to further demonstrate the quality of Kallak North and move closer to what we hope is a positive decision on the exploitation concession; news of both developments being well received by the market," said Budge.
"It is a real challenge to create value without the cash to develop ideas; with the proceeds of this fundraising we can now accelerate the implementation of our strategy," he added.
Kallak North is the company's prime asset in northern Sweden. The iron ore deposit has an indicated mineral resource of 105.9 million tonnes of ore at 27.9% iron and an inferred resource of 17.0 million tonnes at 28.1% iron. Those estimates are based on the drilling of 131 holes on the deposit between 2010 and 2014.
By Joshua Warner; [email protected]; @JoshAlliance
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