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European law firm Fieldfisher has advised AIM-quoted Beowulf Mining plc on a capital raising of Swedish Krona (SEK) 115 million (approximately £9.1 million) to progress the development of the company's Kallak iron ore project in Northern Sweden.
The funding is being raised via a rights issue of Swedish Depository Receipts (SDRs) with a PrimaryBid retail offer of ordinary shares in the company, plus an additional subscription for ordinary shares by Beowulf's management.
In March 2022, Beowulf's Swedish subsidiary Jokkmokk Iron was granted a mining concession for Kallak North, Beowulf's most advanced project and the company's top priority in its European exploration portfolio.
The main objective for Jokkmokk Iron is to become a supplier of world class, net zero CO2 emission iron concentrates for developing green steel producers in the Nordic region.
The proceeds of the capital raising will be used mainly to finance the continued development of Kallak North and to progress the preparation of the environmental permit application for the site, with a view to bringing the mine into production in 2026.
The capital raising should also leave sufficient funding for resource drilling at the southern part of the project, Kallak South.
Beowulf Mining was advised on the capital raising by Fieldfisher's Head of Mining and Metals, Jonathan Brooks, assisted by Oliver Perkins and Caitilín Hepworth.
Commenting on the capital raising, Jonathan Brooks said:
"It is encouraging to see net zero-focused mining projects raising money on AIM. Congratulations to Beowulf on this successful transaction."
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"I believe that the timing of this capital raise is just right. [Our recent] Scoping Study results give the Company a solid foundation on which to build the most modern and sustainable mining operation possible."