Beowulf (AIM: BEM; Spotlight: BEO) is pleased to announce that the Company has agreed loan financing from a Nordic Institutional Investor of SEK 22 million (approximately £1.76 million) before expenses (the “Loan”).
The funding will be used to advance the Company’s projects and achieve key milestones, with the focus being on Kallak.
With the award of the Kallak North (“Kallak”) Exploitation Concession and the appointment of Ulla Sandborgh as CEO of Jokkmokk Iron, this financing builds momentum. It supports the Company’s ambition to have Kallak producing high-quality iron ore products in 2026. Currently, the Company is working with ESG, environmental and engineering consultants on environmental baseline studies and the completion of a Scoping Study timetabled for Q4 2022.
The latest drilling programme in Kosovo has now finished, with approximately 3,400 metres completed. The focus of drilling has been the Majdan Peak gold target, part of the Mitrovica licence, and all assays should be received by the end of July 2022, when the full set of results will be assessed.
In Finland, while work continues on the downstream anode materials project GVA10/50, Grafintec has also been exploring for more natural flake graphite, contracting the Geological Survey of Finland (“GTK”) to do an electromagnetic (“EM”) survey over the Räpysjärvi exploration permit, which is located in the municipality of Tuusniemi in Eastern Finland, 8 kilometres north-northwest of the Aitolampi graphite project.
In recent months, Grafintec has also entered into a Memorandum of Understanding (“MoU”) with GTK. The MoU provides Grafintec and GTK with a framework and a platform to promote and foster cooperation in the fields of circular economy, mineral processing and exploration of graphite as pertaining to anode materials for the lithium-ion battery market and other markets from different raw material sources (Primary, Recycled and Circular) including beneficiation testing and mineralogical research.
Kurt Budge, CEO Beowulf Mining comments:
“I am very pleased that the Company has received good support from a Nordic institutional investor in this financing. Beowulf is proceeding according to plan, and the funding will push us ahead with our Kallak workstreams and activities in our other business areas.
“The Beowulf team is focused on what can be delivered over the next six months. In particular, the completion of the Kallak Scoping Study, timetabled Q4 2022, and other workstreams on the critical path to submitting an application to the Environmental Court by Q4 2023.
“In early June, I attended the Fastmarkets International Iron Ore 2022 conference. There was much discussion regarding high-grade iron ore concentrates, pellets, DRI and decarbonisation. All good news for sustainable Swedish iron ore mining and fossil free steelmakers, both leveraging available renewable power which benefits the north of Sweden.
“The journey has begun, putting Jokkmokk Iron on the map, and developing a mining project that brings stakeholders together and meets society’s needs for metals and the benefits of a Green Transition.”
The Loan – Key Terms
Loan financing of SEK 22 million before expenses has been agreed with the Nordic institutional investor Formue Nord Markedsneutral A/S (the “Creditor”). The Loan has an interest rate of 1.5 percent per each started 30-day period during the duration of the loan to maturity with accrued interest compounding and payable at maturity. The Loan has a commitment fee of 6 per cent and a Maturity Date of 28 February 2023. Beowulf can repay the Loan and accrued interest at any time prior to the Maturity Date. If the Loan and accrued interest is not repaid by 28 February 2023, at the latest, the Creditor has the right to convert the Loan and accrued interest into Swedish Depository Receipts (“SDR”) at a price per SDR calculated with a 15 per cent discount on the volume weighted average price (“VWAP”) of the SDR during the preceding 5 trading days to the conversion decision. The Loan has otherwise been entered into on market-based terms and is unsecured. Aside from this Loan, Beowulf has no other short or long-term interest-bearing debt.
Swedish Financial Advisor
Sedermera Corporate Finance acted as the Swedish financial advisor to Beowulf in connection with the loan financing.
Beowulf Mining plc
Kurt Budge, Chief Executive Officer
Tel: +44 (0) 20 7583 8304
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned