15th Apr 2019 11:47
LONDON (Alliance News) - Beowulf Mining PLC is to increase its holding in a Kosovan miner, it said Monday, as it tries to get its Kallak application moving forward.
Shares were 17% higher at a price of 6.70 pence each.
Beowulf bought an initial 14% stake in Vardar Minerals Ltd in November, and at the start of April raised GBP750,000 to help boost this to 31% for GBP500,000.
Further, it has also spent a further GBP250,000 on increasing its stake to 38%, meaning Vardar's 2019 exploration programmes at the Mitrovica and Viti projects are now fully funded.
Beowulf still has an option to increase its interest to 40% by spending a further GBP115,000.
Vardar is to start geological mapping work at Mitrovica next week, with drilling at the end of April, looking for lead and zinc at the Wolf Mountain target.
"We are looking forward to Vardar's exploration programme in Kosovo getting underway, especially the drilling planned for the Wolf Mountain lead-zinc target at Mitrovica," said Beowulf.
"We have increased our investment in Vardar based on our excitement with the findings to date and the evident potential of the Mitrovica and Viti projects. Already, the company's move into the Balkans is attracting interest from institutional funds, keen to understand what we are doing and what our plans are for the future."
In Sweden, at the Kallak iron ore project, Beowulf is in "active" talks with the Swedish government over getting an exploitation licence for Kallak north. The firm said the government is prioritising Beowulf's application, and it hopes for a decision by the summer.
Beowulf has been trying to get a concession for several years, with a core issue being the status of reindeer herding in the region.
"As we seem to be approaching a final decision on Kallak, we are doing everything we can to make sure the facts of our case are understood, and, if they are, then there should be no impediment to the award of the concession," said Beowulf Chief Executive Budge.
"Common sense would dictate that if you allow a company to invest SEK77 million in Sweden, in a quality iron ore project such as Kallak, and a community such as Jokkmokk, with its significant economic challenges, and you have mining inspectorate's recommendation the concession be awarded, then all the boxes have been ticked."
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