Locations
European law firm Fieldfisher has advised Beowulf Mining plc, an exploration and development company with projects in Sweden, Finland and Kosovo, on an open offer of shares in the UK and a rights issue of Swedish depositary receipts in Sweden, announced in November 2020, to raise up to £7.3 million.
The results of the open offer and SDR rights issue were announced on 21 December 2020, raising gross proceeds of £6.5 million.
The pre-emptive offers are being augmented by an additional placing of £0.9 million in Sweden to take advantage of strong appetite among Nordic investors for Beowulf’s mining projects, increasing the total gross proceeds raised to £7.4 million.
Beowulf was able to take advantage of its Swedish presence and the familiarity of Swedish investors with its business to secure the entirety of its funding target.
As noted in Fieldfisher’s new Alternative financing for mining: New horizons report published in December 2020, Nordic markets are becoming increasingly prominent for mining finance deals. With the assistance of expert advisers who are able to navigate additional complexities, these markets can provide alternatives to capital markets as sources of funding.
Beowulf was obligated to prepare a prospectus for its pre-emptive rights issue in Sweden, which required the approval of the UK’s Financial Conduct Authority.
Commenting on the completion of Beowulf’s capital raising, Jonathan Brooks, Head of Metals and Mining at Fieldfisher, who led the UK legal team advising Beowulf, said:
“We are pleased to have helped Beowulf complete a successful capital raising, despite testing conditions for AIM-listed mining companies this year.
“We have seen signs of UK capital markets activity reviving for mining and metals companies towards the end of 2020, however in this case our client had the advantage of direct access to investors in a second jurisdiction.
“Congratulations to Beowulf on an excellent achievement.”
Kurt Budge, Beowulf’s Chief Executive Officer, said:
“With the SDR offer being oversubscribed and continued interest from Nordic investors, we have been able to execute this placing.
“The capital raising has been almost four months in the making and, on behalf of the board, I wish to express my sincere gratitude to the company’s advisors in Sweden and the UK, who have done all the hard work to make it happen. Beowulf is benefited by their professional conduct and commitment to the company.”
Beowulf has an asset portfolio diversified by commodity, development stage and geography and aims to build a sustainable and innovative mining company that meets society's needs for metals.
Following the completion of this capital raising, the company’s first priority is to secure a concession for the Kallak North iron ore project in northern Sweden. Beowulf’s other projects in Finland and Kosovo are being developed for future base metals, precious metals and graphite production.
About Fieldfisher
Fieldfisher is a European law firm with market leading practices in many of the world's most dynamic sectors. We are an exciting, forward-thinking organisation with a particular focus on energy & natural resources, technology, finance & financial services, life sciences and media.
Our international mining and metals team includes experts in commercial, M&A, finance, restructuring, construction, tax and dispute resolution matters. Our knowledge and practical experience of the sector enables us to assist clients in a variety of complex transactions. Our specialists advise on issues including licensing and permitting; concession arrangements and mine development agreements; joint ventures; acquisitions, disposals, mergers and takeovers; tax and structuring.
We also advise on equity financing, debt, project and structured financing, as well as alternative financing; supplier, contractor, construction and engineering agreements; and dispute resolution including international arbitration and treaty disputes.
Our network has more than 1,550 people working across 25 offices providing highly commercial advice based on an in-depth understanding of our clients' needs.
We operate across our offices in Amsterdam, Barcelona, Beijing, Belfast, Birmingham, Bologna, Brussels, Dublin, Düsseldorf, Frankfurt, Guangzhou, Hamburg, London, Luxembourg, Madrid, Manchester, Milan, Munich, Paris, Rome, Shanghai, Turin, Venice and Silicon Valley.