TIDMBEM
RNS Number : 8919N
Beowulf Mining PLC
14 May 2018
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of Kurt Budge, Chief Executive Officer.
14 May 2018
Beowulf Mining plc
("Beowulf" or the "Company")
AUDITED FINANCIAL RESULTS FOR THE YEARED 31 DECEMBER 2017
Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration
and development company focused on the Kallak magnetite iron ore
project in northern Sweden and its graphite projects in Finland,
announces its audited financial results for the year ended 31
December 2017. The chairman's statement, review of operations and
activities, and financial information has been extracted from the
Company's Annual Report for the year ended 31 December 2017.
The financial information included in this announcement does not
constitute the Group's statutory financial statements as defined in
section 434 of the Companies Act 2006, but is derived from those
accounts. The financial information for the year ended 31 December
2017 has been extracted from the audited accounts of Beowulf Mining
plc which will be delivered to the Registrar of Companies in due
course. The auditors reported on those accounts and their report
was unqualified and did not contain a statement under section 498
(2) or (3) of the Companies Act 2006. The financial information for
the year ended 31 December 2016 has been extracted from the audited
accounts of Beowulf Mining plc which have been delivered to the
Registrar of Companies. The auditors reported on those accounts and
their report was unqualified and did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
The Annual General Meeting of the Company will be held at the
offices of AktieTorget, Master Samuelsgatan 42, 3 tr 111 57
Stockholm on 29 June 2018 at 10.30 a.m. (CET).
The 2017 Annual Report will be posted to those shareholders who
have requested a copy and will be available on the Company's
website in due course (www.beowulfmining.com). A further news
release will be made when the Notice of Annual General Meeting,
Form of Proxy and Annual Report are posted to shareholders.
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Officer Tel: +44 (0) 20 3771 6993
Cantor Fitzgerald Europe
(Nominated Advisor & Broker)
David Porter Tel: +44 (0) 20 7894 7000
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to, (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecasts.
CHAIRMAN'S STATEMENT
Dear Shareholders
Introduction
During the year, we made substantial progress on our exploration
projects. At the Aitolampi graphite project in Finland, we
completed a phase one drilling programme and undertook several
rounds of metallurgical test-work in Canada and Germany. At the
Åtvidaberg exploration licence in southern Sweden, we held a
'technical expert' workshop, conducted fieldwork, and 3D modelled
the historic mine workings, all of which enhanced our understanding
of its potential. Our work programmes position us well in 2018 for
defining a maiden resource and commencing a Scoping Study at
Aitolampi, and potentially defining drill targets at
Åtvidaberg.
In 2017, the Company further strengthened its case for the award
of an Exploitation Concession at Kallak North by completing a
Heritage Impact Assessment ("HIA"). We also injected new momentum
into Kallak, first with the Copenhagen Economics' 'Big Picture'
study, demonstrating the local and regional economic impact that
Kallak could have on Jokkmokk and the County of Norrbotten, and
presenting the Company's approach to delivering success through
partnership with the community and key infrastructure players, and
secondly, with the commencement of a Scoping Study with SRK
Consulting (UK) Ltd ("SRK"). SRK has undertaken a significant
number of technical studies for companies operating in the Nordic
Region and it has the relevant expertise to work with the Company
on designing and engineering a modern and sustainable mining
project at Kallak North, as well as assessing the broader potential
of the Kallak South deposit.
Kallak
The Company is steadfast in its belief that the Kallak
application fully satisfies the requirements of the Swedish Mining
Act and Environmental Code, but in 2017 there were more twists and
turns in the Exploitation Concession process.
In March 2017, the Swedish National Heritage Board
(Riksantivarieämbetet, "RAÄ") and the Swedish Environmental
Protection Agency (Naturvårdsverket, "NV") completed a review on
the sufficiency of information provided in the Company's
application, with respect to the interaction between Kallak and
Laponia. They concluded that Kallak would not directly impact
Laponia but suggested that the Company should provide more details
to describe the possible indirect effects of a mining operation at
Kallak on Laponia, the interaction of mining and reindeer herding,
and matters related to transport.
Even though the RAÄ and NV failed to be specific, as requested
by the Mining Inspectorate, as to where the Company's Environmental
Impact Assessment ("EIA") might be insufficient in the detail it
provides, we produced a HIA which was submitted to the Mining
Inspectorate in April 2017.
When the County Administrative Board ("CAB") consulted with
these two agencies later in the year, they confirmed to the CAB
that the information provided by the Company is possibly sufficient
for the CAB to provide its opinion to the Government on whether
mining is an appropriate land use for Kallak with reference to
Chapters 3 and 4 of the Environmental Code.
The RAÄ and NV gave the Company recognition for the additional
information provided, namely a submission to the CAB in December
2016 and the HIA. However, they did not take any position regarding
the potential impact on reindeer herding caused by Kallak and
suggested that the CAB may wish to consult with Sametinget on this
matter. The RAÄ and NV considered that the claim by Sametinget for
a national interest for reindeer herding at Kallak, despite being
made four years after the Swedish Geological Unit's ("SGU")
designation, is relevant and needs to be considered.
Material developments during the year included, in June 2017,
the Mining Inspectorate returning the Company's application to the
Government, and importantly confirming that the Kallak North EIA is
consistent, in the detail provided, in meeting the requirements of
the Supreme Administrative Court's ("SAC") Norra Kärr judgement,
and later in November 2017, the latest statement from the CAB.
In September 2017, the Company published the Copenhagen
Economics' Study titled 'Kallak - A real asset, and a real
opportunity to transform Jokkmokk'. The Study built on work carried
out by the Company and others, including the 2015 independent
socio-economic study initiated by Jokkmokks Kommun, completed by
consultants Ramböll, which in its findings concluded that a mining
development at Kallak would create direct and indirect jobs,
increase tax revenues and slow down population decline, and the
2010 study by the Economics Unit of Luleå University of Technology,
'Mining Investment and Regional Development: A Scenario-based
Assessment for Northern Sweden'.
The Study showed that a mining operation at Kallak has the
potential to create 250 direct jobs and over 300 indirect jobs in
Jokkmokk; jobs that could be sustained over a period of 25 years or
more. In addition, Kallak has the potential to generate SEK 1
billion in tax revenues, considering the case where 70 per cent of
the mine's workforce are based locally, with annual tax revenues of
SEK 40 million over a 25 year mine life; tax revenues which would
help to develop and sustain public services and infrastructure in
Jokkmokk, which are at risk due to a lack of new investment and job
creation in the community, a declining population, and an ageing
population.
Despite the Study, and the commencement of a Scoping Study with
SRK, on 30 November 2017, the CAB responded to questions from the
Government and recommended that an Exploitation Concession for
Kallak North not be granted. The CAB's statement contradicted its
July 2015 position, when it supported the economic case for Kallak,
and in the Company's opinion, the CAB has failed to use the
socio-economic assessment criteria set out in the Environmental
Code, which put emphasis on safeguarding investment and job
creation, and giving consideration for the municipalities'
financial health.
Instead, the CAB presented a scenario of State investment in
infrastructure being necessary to support the mine, which has never
been proposed or suggested by the Company. It is the Company's
opinion that the analysis by the CAB is flawed, and its conclusions
are biased and cannot be supported.
The Board remains firmly committed to the responsible
development of a modern, sustainable, and innovative mining
operation at Kallak in partnership with the local community. This
remains our ambition, and we now wait for the Government to decide
on our application.
Graphite Portfolio
We made real progress on our graphite portfolio during the year.
Starting with metallurgical testwork results for composite samples
taken from the Haapamäki, Pitkäjärvi and Aitolampi graphite
prospects. We then completed 1,197m of drilling at Aitolampi. The
eight-hole diamond drill programme confirmed that the
Electro-magnetic ("EM") anomalies identified are associated with
wide zones of graphite mineralisation, with a mineralised strike
length of at least 350m along the main conductive zone
drill-tested, dipping between 40 and 50 degrees to the southwest.
The main EM zone extends for 700m.
In October 2017, we announced high grade concentrate results,
from metallurgical testwork carried out by SGS in Canada, on
composite samples from the Aitolampi project. For three samples,
the combined grades ranged from 96.8 per cent to 97.5 per cent
Total Carbon. We achieved a superior metallurgical response from
all three samples compared with grab samples from outcrops analysed
earlier in the year. The process flowsheet used was simple and
proved to be very efficient. The produced concentrates were
despatched for further testwork to ProGraphite in Germany to
determine their marketability and potential applications. Results
from this work were very promising showing that both acid and
alkaline purification methods can produce a very clean concentrate
of greater than 99.41 per cent Total Carbon. Aitolampi
concentrates' chemical and physical properties indicate potential
to serve lithium ion battery manufacturers and could also suit many
other applications.
The focus remains to put one of our graphite projects into
production within three years, and, at this time, Aitolampi is the
front runner.
Åtvidaberg
In late April 2017, the Company held a three-day field workshop
at Åtvidaberg, which brought together the Company's exploration
team and external experts with major mining company exploration
experience, relevant to Bergslagen, volcanogenic massive sulphide
mineralisation and modern exploration technologies. The workshop
provided the opportunity to brainstorm ideas and develop a plan for
the year, which featured both fieldwork and desktop studies focused
on understanding historical mining around Bersbo.
Åtvidaberg represents early stage exploration, but offers real
potential for Beowulf, as signified by past discoveries and
historic mines.
Shareholder Base
Beowulf is approximately 99 per cent owned by retail
shareholders in Sweden and the UK. The number of Swedish
shareholders on the share register continued to grow during the
year and, at 30 April 2018, approximately 58.4 per cent of the
Company was owned by Swedish shareholders. I would like to take the
opportunity to thank our existing and new shareholders for their
continued support.
Raising Finance
Maintaining sufficient funding to continue to invest in projects
is the biggest challenge for any mining exploration and development
company, and without investment funds we cannot create shareholder
value.
During the year we undertook a single fundraising. On 17 May
2017, we announced a subscription for new ordinary shares raising
GBP1.5 million before expenses, completed at a price of 6.5 pence
per share.
Financial Performance
Loss before and after taxation attributable to the owners of the
parent at GBP1.04 million is higher than the loss recorded in 2016
of GBP0.63 million, this increase is largely attributable to
impairment costs incurred of GBP0.18 million and a share-based
payment expense of GBP0.2 million. The impairment costs assessed
relate to projects Nautijaur (GBP27,621) and Piippumäki
(GBP155,510). The share-based payment expense relates predominantly
to new share options awarded in the year.
Basic loss per share of 0.20 pence increased by 54 per cent on
last year (2016: loss per share of 0.13 pence).
Approximately GBP1.59 million in cash was held at the year end.
During the year GBP0.94 million (2016: GBP0.62 million) was spent
on exploration and capitalised.
Corporate
It was announced in September 2017 that Mr Bevan Metcalf, former
Non-Executive Chairman, would retire on the appointment of a
successor, and my appointment was announced on 30 October 2017. As
I commented at the time, I am very pleased to have taken over
stewardship of Beowulf from Bevan, and I would like to reiterate my
thanks to him for his contribution to the Company.
Staff
On behalf of the Board, I would like to express my sincere
thanks to our staff for their hard work and support during the past
12 months.
Outlook
The Company is looking forward to a busy 2018, with exploration
programmes and drilling planned at our Aitolampi graphite project
and on our Åtvidaberg licence and broader activity planned across
the rest of our graphite portfolio. We are also maintaining a keen
eye for any merger and acquisition opportunities.
The Swedish elections may delay a final decision on the Kallak
project, but in 2017 the Company injected momentum back into the
project with the Copenhagen Economics' 'Big Picture' study, and the
commencement of a Scoping Study with SRK. Kallak is an important
project, and it is right that the Government takes its time to be
thorough in its review, and to complete a rigorous and objective
assessment of the facts.
Though shareholders may be frustrated with no definitive
timeline for a decision, Kallak is an important project for
Jokkmokk and the County of Norrbotten and should be treated with
the care and attention it deserves, and an observance of due
process.
The Government can look at the 'Big Picture', the
interdependencies of capital projects in the region, mining, rail,
port, and power, and the potential for Kallak to play its part in a
sustainable economic future for Jokkmokk and the County of
Norrbotten.
In Jokkmokk, no other Company has invested SEK77 million and
created an opportunity like Kallak, that has the potential to
transform the town, and deliver a thriving, diversified and
sustainable economy for the people living there.
We hope that the Government now looks objectively at the facts,
the Company's investment, its commitment to developing a modern and
sustainable mining operation, and the approach we have taken with
all our stakeholders in Jokkmokk, including the Saami villages, to
develop the Kallak project in partnership with them. We are willing
to take all necessary precautions to minimise the impact on
reindeer herding and have also several times stated that any
eventual remaining impact shall be fully compensated.
Göran Färm
Non-Executive Chairman
11 May 2017
SWEDEN
Permits
Beowulf, via its subsidiaries, currently holds 10 exploration
permits together with one registered application for an
Exploitation Concession, as set out in the table below:
Permit Name/Minerals Permit ID Area (km(2) Valid from Valid until
)
--------------------------- ------------ -------------- -------------- --------------
Parkijaure nr3 (Fe)(1,4) 2011:135 4.17 11/08/2011 11/08/2017
Parkijaure nr2 (Fe)(1) 2008:20 2.85 18/01/2008 18/01/2018
Kallak nr1 (Fe)(1,3) 2006:197 5.00 28/06/2006 28/06/2021
Kallak nr2 (Fe)(1,4) 2011:97 22.19 22/06/2011 22/06/2017
Kallak nr3 (Fe)(1) 2012:100 5.56 09/08/2012 09/08/2018
Parkijaure nr4 (Fe)(1) 2012:59 7.60 04/05/2012 04/05/2018
Parkijaure nr5 (Fe)(1) 2013:36 6.22 04/03/2013 04/03/2019
Ågåsjiegge 2014:10 11.14 24/02/2014 24/02/2020
nr2 (Fe)(1)
Åtvidaberg nr1 2016:51 225.12 30/05/2016 30/05/2019
(Pb,Zn,Cu, Ag)(2)
Sala nr10 (Pb,Ag,Zn)(2) 2016:64 10.49 29/06/2016 29/06/2019
Notes:
(1) held by the Company's wholly owned subsidiary, Jokkmokk Iron
Mines AB ("JIMAB").
(2) held by the Company's wholly owned subsidiary, Beowulf
Mining Sweden AB.
(3) an application for the Exploitation Concession was lodged on
25 April 2013 (Mines Inspector Official Diary nr 559/2013) and
an
updated, revised and expanded application was submitted in April
2014. On 21 September 2016, the Company submitted a letter
to the Mining Inspectorate of Sweden, revising its application
boundary to encompass both the Concession Area, delineated by
the
Kallak North orebody, and the activities necessary to support a
modern and sustainable mining operation.
(4) JIMAB has appealed the Mining Inspectorate's decision not to
extend these licences and is waiting for the appeal Court's ruling.
On 11 April 2018, a hearing was held in Luleå.
Introduction
The Kallak magnetite iron ore deposit is located approximately
40km west of Jokkmokk in the County of Norrbotten, 80km southwest
of the major iron ore mining centre of Malmberget, and
approximately 120km to the southwest of LKAB's Kiruna iron ore
mine.
The Company is currently going through the process of obtaining
an Exploitation Concession for Kallak North. Testwork on Kallak ore
has proved that a 'super' high grade magnetite concentrate can be
produced, yielding over 71 per cent iron content, with low levels
of deleterious elements, including phosphorous and sulphur, lending
itself to pelletisation and consumption in DRI facilities in Europe
and the Middle East, and attracting a potential price premium.
Local infrastructure is excellent, with all-weather gravel roads
passing through the project area, and all parts easily reached by
well used forestry tracks. A major hydroelectric power station with
associated electric power-lines is located only a few kilometres to
the south east. The nearest railway (the Inlandsbanan or 'Inland
Railway Line') passes approximately 40km to the east. This railway
line is connected at Gällivare with the 'Ore Railway Line', used by
LKAB for delivery of its iron ore material to the Atlantic harbour
at Narvik (Norway) or to the Botnian Sea harbour at Luleå
(Sweden).
Kallak Resource
The Kallak North and Kallak South orebodies are centrally
located and cover an area approximately 3,700m in length and 350m
in width, as defined by drilling. The mineral resource estimate for
Kallak North and South is based on drilling conducted between
2010-2014, a total of 27,895m were drilled, including 131
drillholes.
The latest resource statement for the Kallak project was
finalised on 28 November 2014, following the guidelines of the JORC
Code 2012 edition, summary as follows:
Project Category Tonnage Fe P S
Mt % % %
Kallak North Indicated 105.9 27.9 0.035 0.001
----------- -------- ------------- ------ ------
Inferred 17.0 28.1 0.037 0.001
-------------------------- -------- ------------- ------ ------
Kallak South Indicated 12.5 24.3 0.041 0.003
----------- -------- ------------- ------ ------
Inferred 16.8 24.3 0.044 0.005
-------------------------- -------- ------------- ------ ------
Global Indicated 118.5 27.5 0.036 0.001
----------- -------- ------------- ------ ------
Inferred 33.8 26.2 0.040 0.003
-------------------------- -------- ------------- ------ ------
Notes:
1. The effective date of the Mineral Resource Estimate is 28 November 2014.
2. Resources have been classified as Indicated or Inferred,
following the guidelines of the JORC Code, 2012 edition.
3. Cut-off grade of 15 per cent Fe has been used.
4. Mineral Resources which are not Mineral Reserves have no
demonstrated economic viability.
5. An exploration target of 90-100Mt at 22-30 per cent Fe
represents potential ore below the pit shells modelled for this
resource statement, and in the gap between drilling defined Kallak
South mineralised zones.
6. The resource statement has been prepared and categorised for
reporting purposes by Mr. Thomas Lindholm, of GeoVista AB, Fellow
of the MAusIMM, following the guidelines of the JORC Code, 2012
edition.
The mineralised area at Kallak North is approximately 1,100m
long, from south to north, and, at its widest part in the centre,
is approximately 350m wide.
The deepest drillhole intercept is located some 350m below the
surface in the central part of the mineralisation. In the southern
and northern parts, the intercepts are shallower at 150-200m.
However, in the northern part, there are no barren holes below
them, so the mineralisation could continue at depth.
The investigations at Kallak South have been divided into two
parts, the northern and southern ends respectively. In the northern
part the mineralisation extends approximately 750m from north to
south and has an accumulated width of 350m. The deepest drillhole
intercept is located some 350m below the surface in the
southern-most part of the mineralisation. In the southern part, the
mineralisation extends approximately 500m from north to south and
has a maximum width of just over 300m. The deepest drillhole
intercept is located some 200m to 250m below the surface in the
central part of the mineralisation.
Approximately 800m in between the southern and northern parts of
Kallak South has not been investigated by systematic drilling. An
exploration target of 90 million tonnes ("Mt") to 100Mt at 22-30
per cent iron has been assigned to the area between the southern
and northern parts.
Further to the south, within the Parkijaure exploration permits
controlled by JIMAB, there are further known magnetite occurrences,
but the current level of investigation does not permit the
estimation of mineral resources.
Application for an Exploitation Concession
2017 Update
The Company is steadfast in its belief that the Kallak
application fully satisfies the requirements of the Swedish
Minerals Act, the Environmental Code, and Swedish law, but there
were still more twists and turns in the Exploitation Concession
process in 2017.
In March 2017, the RAÄ and the NV completed a review on the
sufficiency of information provided in the Company's application,
with respect to the interaction between Kallak and Laponia. They
concluded that Kallak would not directly impact Laponia, but
suggested that the Company should provide more details to describe
the possible indirect effects of a mining operation at Kallak on
Laponia, the interaction of mining and reindeer herding, and
matters related to transport.
Even though the RAÄ and NV failed to be specific, as requested
by the Mining Inspectorate, as to where the Company's EIA might be
insufficient in the detail it provides, the Company produced a HIA,
which was submitted to the Mining Inspectorate in April 2017. A HIA
is not typically required in the prescribed process for an
Exploitation Concession.
When the CAB consulted with these two agencies later in the
year, they confirmed to the CAB that the information provided by
the Company is possibly sufficient for the CAB to provide its
opinion to the Government on whether mining is an appropriate land
use for Kallak with reference to Chapters 3 and 4 of the
Environmental Code.
The RAÄ and NV gave the Company recognition for the additional
information provided, namely a submission to the CAB in December
2016 and the HIA. However, they did not take any position regarding
the potential impact on reindeer herding caused by Kallak and
suggested that the CAB may wish to consult with Sametinget on this
matter. The RAÄ and NV considered that the claim by Sametinget for
a national interest for reindeer herding at Kallak, despite being
made four years after the Swedish Geological Unit's designation, is
relevant and needs to be considered.
Other material developments during the year included, in June
2017, the Mining Inspectorate returning the Company's application
to the Government, and importantly confirming that the Kallak North
EIA is consistent, in the detail provided, in meeting the
requirements of the SAC Norra Kärr judgement, and later in November
2017, a further statement from the CAB.
In September 2017, the Company published the Copenhagen
Economics' Study titled 'Kallak - A real asset, and a real
opportunity to transform Jokkmokk'. The Study built on work carried
out by the Company and others, including the 2015 independent
socio-economic study initiated by Jokkmokks Kommun, completed by
consultants Ramböll, which in its findings concluded that a mining
development at Kallak would create direct and indirect jobs,
increase tax revenues and slow down population decline, and the
2010 study by the Economics Unit of Luleå University of Technology,
'Mining Investment and Regional Development: A Scenario-based
Assessment for Northern Sweden'.
The Study showed that a mining operation at Kallak has the
potential to create 250 direct jobs and over 300 indirect jobs in
Jokkmokk; jobs that could be sustained over a period of 25 years or
more. In addition, Kallak has the potential to generate SEK 1
billion in tax revenues, considering the case where 70 per cent of
the mine's workforce are based locally, with annual tax revenues of
SEK 40 million over a 25 year mine life; tax revenues which would
help to develop and sustain public services and infrastructure in
Jokkmokk, which are at risk due to a lack of new investment and job
creation in the community, a declining population, and an ageing
population.
Despite the Study, and the commencement of a Scoping Study with
SRK, on 30 November 2017, the CAB responded to questions from the
Government and recommended that an Exploitation Concession for
Kallak North not be granted. The CAB's statement contradicted its
July 2015 position, when it supported the economic case for Kallak,
and in the Company's opinion, the CAB has failed to use the
socio-economic assessment criteria set out in the Environmental
Code, which put emphasis on safeguarding investment and job
creation, and giving consideration for a municipalities' financial
health.
Instead, the CAB presented a scenario of State investment in
infrastructure being necessary to support the mine, which has never
been proposed or suggested by the Company. It is the Company's
opinion that the analysis by the CAB is flawed, and its conclusions
are biased and cannot be supported.
The Board remains firmly committed to the responsible
development of a modern, sustainable, and innovative mining
operation at Kallak in partnership with the local community. This
remains the Company's ambition, and we now wait for the Government
to decide on our application.
Post year end
The Company's application for an Exploitation Concession remains
with the Government. On 1 February 2018, the Company announced that
it had provided comments to the Government on the CAB's statement
dated 30 November 2017. The Company summarised the main points used
by the CAB to support the CAB's latest position that an
Exploitation Concession for Kallak North should not be awarded.
The CAB has argued that the estimated 14-year production life of
Kallak, as included in the original application, is of such short
duration, that it does not justify Government investment in
infrastructure, it does not support a socio-economic case, and it
is not a reasonable use of natural resources. In addition, given
the 14-year production life, the CAB views reindeer herding as the
best use of land. Finally, that risks to the World Heritage Status
of Laponia remain unclear.
In its response, the Company summarised chronologically the
CAB's handling of the Company's application, and the involvement of
other authorities. Also, the Company detailed its interpretation of
the Swedish Minerals Act, the Environmental Code, and the roles of
each authority, in assessing the Company's application for an
Exploitation Concession.
Mine Production Life
The Company has argued that a mine at Kallak is likely to be in
production for much longer than 14 years, based on existing
knowledge of the orebodies at Kallak North and Kallak South; a fact
acknowledged by the CAB in its July 2015 statement, when it
supported both the economic case for Kallak, and the Company's
application.
In addition, the Company argues that mining projects, in
general, add to their resource inventories, and apply for permits
over time, extending their production lives. There are examples of
mines in Sweden, which have been in production for decades, and in
some cases centuries.
Infrastructure Investment
The CAB asserts that the Swedish Government may have to invest
in infrastructure to facilitate a mine at Kallak, and by using a
14-year mine life the CAB states that there is no case to support
this. The Company has never suggested that the Government needs to
invest in infrastructure associated with Kallak.
It is fact, that potential infrastructure partners in the region
have their own expansion and investment plans, including
Inlandsbanan and the Port of Luleå. Additionally, LKAB, with
Trafikverket, is working on increasing the capacity of the Ore
Railway Line.
The Company also notes that the prescribed process for handling
the Kallak application, referring to the Swedish Mineral Act and
Environmental Code, and the SAC's judgement in the Norra Kärr case,
does not require full assessment of matters regarding transport at
this stage of permitting.
Reindeer Herding
The Company has reminded the Government that for four years
since February 2013, when Kallak was designated by the SGU as an
Area of National Interest ("ANI"), there were no competing national
interests.
Before February 2017, when Sametinget placed national interest
for reindeer herding directly on top of Kallak, there were no
conflicting national interests for the Concession Area, or for
those areas taken by operational facilities necessary to support
mining. A fact recognised by the CAB in its July 2015 statement,
when it supported both the economic case for Kallak, and the
Company's application.
In the CAB's latest statement, it has given no consideration to
the years since the Company submitted its original application, in
April 2013, the Company's engagement with the CAB, and continued
investment in Kallak, when there were no conflicting national
interests. The CAB now argues in favour of national interest for
reindeer herding.
The CAB has not acknowledged that mining and reindeer herding
can prosper side by side, despite providing no evidence to the
contrary. Previously, the Company has stated that there are no
examples in Sweden of any reindeer herding community being closed
by any form of industrial activity, not just mining. Yet, there are
many examples of companies reaching agreements with reindeer
herding communities, as projects progress towards eventual
operation, which benefit all parties concerned.
In the Kallak application, the Company has included
preventative, precautionary, and compensatory frameworks, to be
developed into management plans in consultation with the reindeer
herding communities, at the appropriate time, and when details are
available to have meaningful discussions and make definitive
agreements.
The Company has restated key numbers, that Kallak's area of 13.6
square kilometres ("km(2") ) compares to Jåhkågaska tjellde's
2,640km(2) of grazing land or 0.5 per cent, and that reindeer
herding in Sweden covers 220,000 km(2) , representing almost half
of the country.
Laponia
Kallak is situated, at the closest point, approximately 34km
away from Laponia. Laponia's boundary has been established to
protect what lies within the boundary, and not to restrict
development, such as Kallak, which is located far beyond any
conceivable 'buffer zone'. It is the Company's view that suggesting
Kallak could have such an impact on Laponia as to threaten
Laponia's World Heritage Status is not a reasonable argument. The
Company's ambition, to develop a modern and sustainable mining
operation, in partnership with the community, protecting all
interests, will further ensure that Laponia is unaffected.
The Kallak application and the Company's Heritage Impact
Assessment have comprehensively assessed the direct and indirect
effects of Kallak on Laponia. The Company maintains that mining and
reindeer herding can prosper side by side, and there should be no
material impact on reindeer herding in Laponia, and when it comes
to transport, environmental permitting will safeguard the interests
of Laponia.
On 6 March 2018, the Company published a letter written by Kurt
Budge, CEO, to the Government. Extract as follows:
"Subject: Bearbetningskoncession Kallak Nr 1 N2017-04553
Thank you for giving Jokkmokk Iron Mines AB, a 100 per cent
owned subsidiary of Beowulf, the opportunity to make final comments
to the Government in respect of our application for an Exploitation
Concession for the Kallak North Iron Ore Project.
I joined Beowulf in September 2014, having worked in the mining
sector for over 20 years, in business development with the
multi-national company Rio Tinto, in operations in the UK coal
industry, and in banking and private equity. My values are centred
around working in partnership with stakeholders and delivering
sustainable development. This is what I have done in my career,
when managing operations, permitting, and developing new mines.
Since I joined Beowulf, the Company has done everything it can
to build and strengthen relationships with the community in
Jokkmokk, and with regulators and decision makers in Norrbotten and
Stockholm. During this time, the mayors of Jokkmokk and Luleå, and
entrepreneurs and landowners in Jokkmokk, have voiced their support
for the Kallak project. They want companies to come to Jokkmokk and
Norrbotten, to invest, to create opportunities for job creation and
economic growth; Beowulf has done just that, and I have made it
clear that the Company's approach is to develop Kallak in
partnership with local and regional stakeholders, in a responsible
and sustainable way, and in harmony with the environment.
The delays and constant waiting for an authority to give an
opinion or take a decision on our application have significantly
impeded discussions with the Saami. We share the Minister's view
that mining and reindeer herding can coexist, and the Kallak
project is no exception, as the evidence shows for existing mines
in Sweden. We see many examples in Sweden where agreements have
been reached between companies and the Saami, and positive working
relationships have been developed; this is the Beowulf's intention.
Despite perceived threats to reindeer herding, studies show that
reindeer herding in Sweden is on the increase, and we have found no
examples of a cooperative being forced to close because of a new
industrial development, not just mining.
Before October 2014, there was good exchange between
Länsstyrelsen in Norrbotten and the Company, with questions being
asked and answers given on our application. By the autumn of 2014,
the Company had drilled almost 28,000m at Kallak, and on 28
November 2014 updated its mineral resource statement, including the
deposits of Kallak North and Kallak South, indicating the potential
for a global tonnage of iron ore mineralisation of
circa 250Mt. To date, Beowulf has invested SEK 77 million in Kallak.
It is widely acknowledged that Länsstyrelsen has consistently
failed to follow the prescribed process for assessing an
Exploitation Concession application. Now it writes about the need
for State investment in infrastructure to support Kallak; this has
never been proposed or suggested by the Company.
In Norrbotten, Inlandsbanan, the Port of Luleå, and LKAB and
Trafikverket are all looking at expanding infrastructure capacity.
As we tried to demonstrate with the Copenhagen Economics' project
study, titled 'Kallak - A real asset, and a real opportunity to
transform Jokkmokk', there is a 'Bigger Picture' positive impact
that Kallak can deliver, both in Jokkmokk and Norrbotten, as major
projects in the region are interlinked and interdependent.
Mining the Kallak North deposit has the potential to provide
around 250 direct jobs and SEK600 million in additional tax
revenues to the Municipality of Jokkmokk over 14 years. If the mine
life is extended with the Kallak South deposit, then SEK1 billion
in additional tax revenues could be generated over 25 years.
A well-engineered plan is essential, so that the local community
reaps the benefits of Kallak's potential, and Beowulf believes that
the full potential benefits will only materialise through
partnership and collaboration with local and regional
stakeholders.
Länsstyrelsen's latest statement contradicts its July 2015
position, when it supported the economic case for Kallak, then
verbally confirmed its support to Bergsstaten for the Company's
application, and Bergsstaten, in October 2015, recommended to the
Government that the Concession be awarded. It is based on
statements such as this, that Beowulf has continued to invest in
Kallak.
Also, in July 2015, Länsstyrelsen acknowledged that there were
no conflicting national interests for the Concession Area. This was
also the case for those areas taken up by operational facilities
necessary to support mining. In February 2013, the SGU designated
Kallak an Area of National Interest for its mining potential. Four
years later, in February 2017, Sametinget placed national interest
for reindeer herding directly on top of the Kallak Concession
Area.
Now, Länsstyrelsen gives no consideration for the period when
there were no conflicts, and it watched the Company continue to
invest in Kallak. It now chooses to build a case around reindeer
herding being the most important national interest, but this is
based on false arguments. I would suggest that to most observers,
the fact that Sametinget asserted national interest for reindeer
herding directly on top of the Kallak Concession Area four years
after the SGU designation, and late in the application process,
would appear nothing but an attempt to obstruct and frustrate our
application.
With respect to Laponia, Kallak is 34km away at its closest
point. Existing mines operate in closer proximity and have not
threatened Laponia's World Heritage Status. Naturvårdsverket and
Riksantivarieämbetet have confirmed that Kallak will have no direct
impact on Laponia.
Laponia's boundary has been established to protect what lies
within the boundary, and not to restrict development, such as
Kallak, which is located far beyond any conceivable 'buffer zone'.
It is the Company's view that suggesting Kallak could have such an
impact on Laponia as to threaten Laponia's World Heritage Status is
not a reasonable argument. The Company's ambition, to develop a
modern and sustainable mining operation, in partnership with local
stakeholders, protecting all interests, will further ensure that
Laponia is unaffected.
The Kallak application and the Company's Heritage Impact
Assessment have comprehensively assessed the direct and indirect
effects of Kallak on Laponia. The Company maintains that mining and
reindeer herding can prosper side by side, and there should be no
material impact on reindeer herding in Laponia, and when it comes
to transport, environmental permitting will safeguard the interests
of Laponia.
I have never during my previous career, in any country, been
involved in a permitting process where the authorities have shown
such a lack of willingness to engage with a company on a major
application. The permitting process we have experienced has been
inefficient, slow, and unpredictable. Our application has been
passed back and forth, from one authority to another, with no
questions put to the Company, nor feedback given on additional
documentation we have provided, nothing. No authorities have made
any attempt to reconcile the differences between the Saami villages
and the Company, or to facilitate the discussion that could lead to
an understanding between the parties. Instead decision makers
choose to sit in isolation, and determine the fate of our
application, evidently misrepresenting the facts, and biased in
their analysis.
Länsstyrelsen's actions have so far hindered Beowulf, the Kallak
project, and, as commented by industry participants in Sweden and
mining analysts in London, are damaging Sweden's reputation as a
place to invest and do business.
On 22 February 2018, the Fraser Institute in Canada, published
it latest rankings on Investment Attractiveness of mining
jurisdictions globally, and Sweden has fallen eight places to 16th.
Beowulf did not take part in the survey, but comments from another
exploration company included, "Sweden is a stable system; however,
there is still room for improvement. Investors have concerns over
permit delays, lengthy legal disputes, and inconsistent
environmental regulations".
In January 2017, I spoke in Stockholm on the comparative
advantage of doing business in Sweden. What should be a real
advantage to Sweden, is being damaged by uncertain application
processes, a distinct lack of respect shown by Swedish authorities
for mining companies and their permit applications, scant regard
for the significant investments being made and the potential job
opportunities being created.
I heard the Minister speak at SveMin's Höstmöte in Stockholm, at
the end of November 2017, about the importance of the mining
industry in Sweden, and the problems being experience with
permitting new mines. More recently, I see that the Swedish
Government has given SEK10 million to the SGU to explore for
'Battery Minerals' in Bergslagen. It may interest the Minister to
know, that Beowulf has a portfolio of graphite projects in Finland,
which we are actively exploring.
In September 2017, the Minister was quoted in the Swedish media
as saying that Swedish law is enough for testing our application,
and that the permitting process should be "by the book".
We hope that the Government now looks objectively at the facts,
the Company's investment, its commitment to developing a modern and
sustainable mining operation, and the approach we have taken with
all our stakeholders in Jokkmokk, including the Saami villages, to
develop the Kallak project in partnership with them. We are willing
to take all necessary precautions to minimise the impact on
reindeer herding and have also several times stated that any
eventual remaining impact shall be fully compensated.
In October 2015, Bergsstaten recommended to the Government that
an Exploitation Concession be awarded for Kallak Nr 1. Over the
last three years, the prescribed process in Sweden for an
Exploitation Concession has not changed, we have addressed specific
concerns raised by Norrbotten Länsstyrelsen regarding transport,
provided supplementary information to demonstrate that mining and
reindeer herding can prosper together, and a Heritage Impact
Assessment to dispel any concerns about the interaction of Kallak
and Laponia.
In Jokkmokk, no other Company has invested SEK77 million and
created an opportunity like Kallak, that has the potential to
transform the town, and deliver a thriving, diversified and
sustainable economy for the people living there."
Åtvidaberg nr 1 Exploration Licence
The exploration licence for Åtvidaberg nr 1 is in southern
Sweden, to the southern end of Bergslagen, one of Europe's oldest
mining areas. Bergslagen contains one of the world's main
volcanogenic massive sulphide ("VMS") districts with deposits
characterised by high contents of zinc, lead, copper, and sometimes
silver and gold, the majority of which are small deposits.
Bergslagen yielded a substantial portion of Sweden's mineral wealth
during the 1800s to 1900s, with several large mines and hundreds of
smaller mines producing copper, zinc, lead, gold, and silver.
Current operating mines in the area include Boliden's Garpenberg
and Lundin Mining's Zinkgruvan mines.
Bergslagen has seen little modern exploration, yet it hosts
Bersbo, one of Sweden's largest early copper mines, and Zinkgruvan,
Sweden's most important zinc mine. Other than at Zinkgruvan,
exploration activity in Bergslagen has predominantly focused on
finding new outcropping ore bodies, with some historic mining areas
not being explored since the 1900s.
In late April 2017, the Company held a three-day field workshop
at Åtvidaberg, which brought together the Company's exploration
team and external experts with major mining company exploration
experience, relevant to Bergslagen, volcanogenic massive sulphide
mineralisation and modern exploration technologies. The workshop
provided the opportunity to brainstorm ideas and develop a plan for
the year, which featured both fieldwork and desktop studies focused
on understanding the historical mining around Bersbo.
Åtvidaberg represents early stage exploration, but offers real
potential for Beowulf, as signified by past discoveries and
historic mines.
Sala nr 10 Exploration Licence
The Sala licence area covers 1,049ha and is in V stmanland
County, southern Sweden. The licence is prospective for
lead-zinc-silver mineralisation and is situated 200m west of the
former Sala silver mine. Sulphide mineralisation in the area is
carbonate hosted, occurring dominantly as silver-bearing lead
sulphide (galena), and zinc sulphide (sphalerite), and to a lesser
extent as complex antimonides, sulphosalts and native silver.
The Sala mine was once Europe's largest silver producer, in
continuous production between the late 15th century and 1908 and
known for having some of the richest silver ores in the world.
Mining records show that Sala was mined to a depth of approximately
300m, with mineralisation remaining open at depth.
Mining continued in 1950-51 and between 1945-62 at the adjacent
Bronas mine.
FINLAND
Finnish Exploration Permits
Beowulf, via its subsidiary, Fennoscandian, currently holds two
exploration permits for graphite, and has applied for a further
four graphite exploration permits.
Permit Name Permit ID Area (km(2) Valid from Valid
) until
--------------------------- -------------- ------------ ------------ ------------
Approved Exploration
Permits
Pitkäjärvi 2016:0040-01 10.00 07/12/2016 07/12/2020
1
Viistola 1 2016:0005-01 0.49 09/11/2017 09/11/2021
Applied for Exploration
Permits
Haapamäki 1 2015:0025-01 4.77 Applied for 26/04/2016
Rääpysjärvi 2017:0104-01 7.16 Applied for 08/08/2017
1
Kolari 1 2017:0108-01 9.70 Applied for 29/11/2017
Joutsjärvi 1 2017:0122-01 5.79 Applied for 16/10/2017
Aitolampi/Pitkäjärvi - Graphite
Introduction
The Aitolampi and Pitkäjärvi graphite prospects were new
discoveries in 2016 and are eastern extensions to the Haapamäki
prospect. Pitkäjärvi and Aitolampi are areas of graphitic schists
on a fold limb, coincidental with an extensive EM anomaly. Many of
the EM zones are obscured by glacial till, but graphite
observations in road cuttings and outcrops are also associated with
abundant EM anomalies. Haapamäki is in eastern Finland
approximately 40km southwest of the well-established mining town of
Outokumpu.
2017 Summary
We made real progress on our graphite portfolio during 2017.
Starting with metallurgical testwork results for composite samples
taken from the Haapamäki, Pitkäjärvi and Aitolampi graphite
prospects. We then completed 1,197m of drilling at Aitolampi. The
eight-hole diamond drill programme confirmed that the EM anomalies
identified are associated with wide zones of graphite
mineralisation, with a mineralised strike length of at least 350m
along the main conductive zone drill-tested, dipping between 40 and
50 degrees to the southwest. The main EM zone extends for 700m.
In October 2017, we announced high grade concentrate results for
composite samples from the Aitolampi project. For three samples,
the combined grades ranged from 96.8 per cent to 97.5 per cent
Total Carbon. We achieved a superior metallurgical response from
all three samples compared with grab samples from outcrops analysed
earlier in the year. The process flowsheet used was simple and
proved to be very efficient. The produced concentrates were then
sent for further testwork to determine their marketability and
potential applications.
The focus remains to put one of Beowulf's graphite projects into
production within three years, and, at this time, Aitolampi is the
front runner.
Aitolampi Drilling
-- Eight holes drilled, approximately 1,197m in total, with the
first four drill holes, AITDD17001-004, extending 350m along strike
for the main conductive zone.
-- Drill holes AITDD17005-008 tested the extent of
mineralisation down-dip of the main conductive zone.
-- Substantial graphite mineralisation intersections in all
holes, including up to 113.5m down-hole width for the longest drill
hole AITDD17006, which correspond with identified EM conductors. It
should be noted that the mineralisation intercept is the down-hole
width and may not be the true width.
-- Drill holes AITDD17005-006 tested two parallel conductors to
the main conductive zone and intersected graphite mineralisation
for both conductors.
-- Drill hole AITDD17006 intercepted 202.98m at 3.09 per cent
Total Graphite Carbon ("TGC") from 19.2m depth (this includes some
barren zones with no assays and calculated as zero per cent TGC),
and higher-grade zones of 18.95m at 6.33 per cent TGC, and 14m at
6.26 per cent TGC.
-- Drill hole AITDD17001 intercepted 141.86m at 3.72 per cent
TGC from 19.67m depth, including a higher-grade zone of 39.48m at
5.02 per cent TGC.
-- Drill hole AITDD17008 intercepted 60.29m at 4.01 per cent TGC
from 8.71m depth, including 12m at 5.79 per cent TGC.
-- Drill hole AITDD17005 intercepted 41.1m at 4.39 per cent TGC
from start of hole, including 28.4m at 5.1 per cent TGC and 4m at
7.71 per cent TGC.
-- It should be noted that the mineralisation intercepts are the
down-hole widths and are not the true width of mineralisation. All
samples were prepared and analysed by ALS Finland Oy's laboratory
in Outokumpu.
Metallurgical Testwork
-- Composite samples from the drilling programme were dispatched
to SGS Mineral Services in Canada. They included an average grade
composite for the main conductive zone, a higher-grade composite
for the main conductive zone/near-surface mineralisation, and a
higher-grade composite for the parallel conductive zones.
-- The combined grades ranged from 96.8 per cent to 97.5 per
cent Total Carbon ("C(t)") across the three samples.
-- All three samples responded similarly in terms of concentrate
grades of the various size fractions.
-- Testwork achieved a superior metallurgical response with all
three samples compared with grab samples from outcrops analysed
earlier in the year.
-- The process flowsheet used was simple yet proved to be very efficient.
Post-Year End
Metallurgical Testwork/Market Assessment
-- Concentrates from the SGS testwork were sent to ProGraphite
Gmbh ("ProGraphite") based in Germany. ProGraphite specialises in
the processing and evaluation of graphite materials.
-- Alkaline purification produced 99.86 per cent C(t) for
+100-mesh concentrate and 99.82 per cent C(t) for -100-mesh
concentrate.
-- Results from acid purification were also promising and
reached 99.6 per cent C(t) for the +100-mesh and 99.41 per cent for
the -100-mesh concentrate.
-- The alkaline and acid purification results indicate that,
with some process optimisation, Aitolampi concentrates may meet the
purity specification of 99.95 per cent C(t) required for the
lithium ion battery market.
-- Aitolampi graphite shows high crystallinity, with the degree
of graphitisation measuring approximately 98 per cent, which is
almost perfect crystallinity, an important prerequisite for high
tech applications, such as lithium ion batteries.
-- Volatiles are low, which is an attractive product attribute
in many applications, including refractories, lubricants,
crucibles, and foundries.
-- Specific Surface Area ("SSA") is comparable to that of high
quality flake graphite from China.
-- Oxidation behaviour is comparable with Chinese graphite of
the same flake size, used for refractories, and other high
temperature applications.
Further Drilling
-- In March 2018, the Company awarded a contract to Oy
Northdrill, a Finnish drilling company.
-- 10 holes have been completed and 1577.6m have been diamond drilled.
-- Longest hole drilled, AITDD18014, was 235.3m, and intercepted
a total length of graphite mineralisation of 127.4m, including a
single intercept of 44.9m. Mineralisation started 24.4m from the
collar. This hole tested all three conductive zones including the
north-western strike extension of the higher-grade parallel
graphite zones intersected in hole AITDD17006 in last year's
drilling programme.
-- Longest single intercept of graphite mineralisation, in hole
AITDD18015, was 99.4m. Total hole length was 150.0m and
mineralisation started at 20.7m from the collar.
-- Infill drilling has confirmed the continuity of graphite
mineralisation between holes drilled in the 2017 drilling
programme.
-- Several holes proved mineralisation down-dip from graphite
intersected in 2017 and intersected wide mineralised zones along
strike and down-dip for some of the previously identified higher
grade mineralised zones.
-- Drilling shows that mineralisation has a strike length of at
least 350m along the main conductive zone (the main EM anomaly
extends for 700m).
-- For the two parallel higher-grade zones previously
identified, mineralisation has a strike length of at least 150m
(the two parallel conductive zones extend for 300m and 250m).
-- Mineralisation for all zones remains open along strike and at depth.
-- Within the Company's Pitkäjärvi licence area, several
extensive EM conductors, associated with graphite observed in
surface outcrops, have yet to be drilled, are prospective for
graphite mineralisation, and offer potential upside.
-- The Company's geologists core logged for all holes, and
samples have been sent to ALS Minerals in Finland for assay. All
samples are being assayed for Graphitic Carbon (C-IR18), Total
Carbon (C-IR07) and Total Sulphur (S-IR08).
Assay Results
-- Drilling has confirmed the continuity of mineralisation
between holes drilled in 2017, wide graphite lenses extending along
strike, at least 350m along the main conductive zone (EM anomaly
extends for 700m), and at depth.
-- For the two parallel higher-grade zones previously
identified, mineralisation has a strike length of at least 150m
(the two parallel conductive zones extend for 300m and 250m), and
these zones seem to merge to form one body of mineralisation.
-- From northwest to southeast along strike, drill holes
AITDD18014, AITDD18016, AITDD18015, AITDD18017 and AITD18018
(drilled on the same profile), all intersected this higher-grade
body of mineralisation, with intercepts of 89.60m at 4.01% TGC,
107.09m at 4.59% TGC, 108.69m at 5.04% TGC, 121.68% at 5.00% TGC
and 121.46m at 5.29% TGC respectively.
-- For these holes, intercepts showing greater than 5% TGC were
as follows: AITDD18014 - 30.10m at 5.75% TGC; AITDD18016 - 29.00m
at 6.04% TGC; AITDD18017 - 62.42m at 6.08% TGC; and AITDD18018 -
92.46m at 6.19% TGC, including 44.00m at 7.08% TGC.
-- AITDD18018 is the furthest hole drilled to the southeast, to
test the parallel higher-grade conductive zone, which remains open
in all directions.
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 17 2017 2016
Note GBP GBP
CONTINUING OPERATIONS
Administrative expenses (861,669) (638,573)
Impairment of exploration costs (183,131) -
________ ________
OPERATING LOSS (1,044,800) (638,573)
Finance income 5,234 5,344
________ ________
LOSS BEFORE INCOME TAX (1,039,566) (633,229)
Income tax expense - -
________ ________
LOSS FOR THE YEAR (1,039,566) (633,229)
________ ________
Loss attributable to:
Owners of the parent (1,038,248) (632,125)
Non-controlling interests (1,318) (1,104)
________ ________
(1,039,566) (633,229)
________ ________
Loss per share attributable to the ordinary
equity holder of the parent:
Basic and diluted (pence) 2 (0.20) (0.13)
________ ________
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 17 2017 2016
GBP GBP
LOSS FOR THE YEAR (1,039,566) (633,229)
OTHER COMPREHENSIVE INCOME
Item that may be reclassified subsequently
to profit or loss:
Exchange gains arising on translation
of foreign operations 67,862 626,438
Reclassification of revaluation reserve - 55,664
________ ________
67,862 682,102
________ ________
TOTAL COMPREHENSIVE LOSS/INCOME (971,704) 48,873
________ ________
Total comprehensive loss/income attributable
to:
Owners of the parent (970,426) 49,005
Non-controlling interests (1,278) (132)
________ ________
(971,704) 48,873
________ ________
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
As at 31 December 17 2017 2016
Note
GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 3 8,191,232 7,186,576
Property, plant and equipment 28,580 23,511
Loans and other financial assets 5,530 5,503
_________ _________
8,225,342 7,215,590
_________ _________
CURRENT ASSETS
Trade and other receivables 65,032 51,766
Cash and cash equivalents 1,589,897 1,609,219
_________ _________
1,654,929 1,660,985
_________ _________
TOTAL ASSETS 9,880,271 8,876,575
_________ _________
EQUITY
SHAREHOLDERS' EQUITY
Share capital 4 5,342,072 5,026,302
Share premium 18,141,271 16,879,241
Revaluation reserve - 25,664
Capital contribution reserve 46,451 46,451
Share Based Payment reserve 575,078 237,803
Merger reserve 137,700 137,700
Translation reserve (397,060) (464,882)
Accumulated losses (14,079,747) (13,067,163)
_________ _________
9,765,765 8,821,116
Non-controlling interests (159,871) (158,593)
_________ _________
TOTAL EQUITY 9,605,894 8,662,523
_________ _________
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 274,377 214,052
_________ _________
TOTAL LIABILITIES 274,377 214,052
_________ _________
TOTAL EQUITY AND LIABILITIES 9,880,271 8,876,575
_________ _________
The financial statements were approved and authorised for issue
by the Board of Directors on 11 May 2018 and were signed on its
behalf by:
Mr K Budge - Director
Company Number 02330496
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
For the year ended 31
December 17
Share Share premium Revaluation Merger Capital
capital reserve reserve contribution
reserve
GBP
GBP GBP GBP
GBP
At 1 January 2016 4,303,138 15,187,112 (30,000) - 46,451
----------- --------------- ------------- ---------- ---------------
Loss for the year - - - - -
Reclassification of - - 55,664 - -
revaluation reserve
Foreign exchange - - - - -
translation
Total comprehensive - - 55,664 - -
income
----------- --------------- ------------- ---------- ---------------
Transactions with owners
Issue of share capital 697,664 1,837,243 - - -
Cost of issue - (145,114) - - -
Equity settled share - - - - -
based transactions
Release of charge for - - - - -
lapsed options
Acquisition of subsidiary 25,500 - - 137,700 -
----------- --------------- ------------- ---------- ---------------
At 31 December 2016 5,026,302 16,879,241 25,664 137,700 46,451
=========== =============== ============= ========== ===============
Loss for the year - - - - -
Foreign exchange - - - - -
translation
Total comprehensive - - - - -
income
----------- --------------- ------------- ---------- ---------------
Transactions with owners
Issue of share capital 315,770 1,337,030 - - -
Cost of issue - (75,000) - - -
Equity settled share - - - - -
based transactions
Acquisition of subsidiary - - - - -
Transfer to accumulated - - (25,664) - -
losses
At 31 December 2017 5,342,072 18,141,271 - 137,700 46,451
=========== =============== ============= ========== ===============
Share Translation Accumulated Totals Non - Totals
based reserve losses controlling
payments interest
reserve GBP GBP GBP GBP GBP
GBP
At 1 January 2016 97,796 (1,090,348) (12,466,046) 6,048,103 (158,461) 5,889,642
Loss for the year - - (632,125) (632,125) (1,104) (633,229)
Reclassification of
revaluation reserve - - - 55,664 - 55,664
Foreign exchange
translation - 625,466 - 625,466 972 626,438
---------
Total comprehensive
income - 625,466 (632,125) 49,005 (132) 48,873
------------ ------------- ------------ ------------ ------------
Transactions with owners
Issue of share capital - - - 2,534,907 - 2,534,907
Cost of issue - - - (145,114) - (145,114)
Equity settled share
based transactions 40,109 - - 40,109 - 40,109
Release of charge for
lapsed options (31,008) - 31,008 - - -
Acquisition of
subsidiary 130,906 - - 294,106 - 294,106
--------------
At 31 December 2016 237,803 (464,882) (13,067,163) 8,821,116 (158,593) 8,662,523
========= ============ ============== ============ ============ ============
Loss for the year - - (1,038,248) (1,038,248) (1,318) (1,039,566)
Foreign exchange
translation - 67,822 - 67,822 40 67,862
Total comprehensive
income - 67,822 (1,038,248) (970,426) (1,278) (971,704)
--------- ------------ -------------- ------------ ------------ ------------
Transactions with owners
Issue of share capital - - - 1,652,800 - 1,652,800
Cost of issue - - - (75,000) - (75,000)
Equity settled share
based transactions 203,059 - - 203,059 - 203,059
Acquisition of
subsidiary 134,216 - - 134,216 - 134,216
Transfer to accumulated - - 25,664 - - -
losses
--------------
At 31 December 2017 575,078 (397,060) (14,079,747) 9,765,765 (159,871) 9,605,894
========= ============ ============== ============ ============ ============
2017 2016
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2017 GBP GBP
Note
Cash flows from operating activities
Loss before income tax (1,039,566) (633,229)
Depreciation charges 15,890 12,097
Equity-settled share-based transactions 203,059 40,109
Impairment of exploration costs 3 183,131 -
Expenses financed by issue of shares - 29,375
Reclassification of revaluation reserve - 55,664
Finance income (5,234) (5,344)
_________ _________
(642,720) (501,328)
(Increase)/decrease in trade and other
receivables (12,760) 31,646
Decrease/(increase) in trade and other
payables 15,673 (15,557)
_________ _________
Net cash used in operating activities (639,807) (485,239)
_________ _________
Cash flows from investing activities
Purchase of intangible assets (943,599) (622,817)
Purchase of property, plant and equipment (20,367) (862)
Sale of investments 14 50,444
Acquisition of subsidiary - (50,482)
Interest received 5,234 5,344
_________ _________
Net cash used in investing activities (958,718) (618,373)
_________ _________
Cash flows from financing activities
Proceeds from issue of shares 1,652,800 2,505,530
Payment of share issue costs (75,000) (145,114)
_________ _________
Net cash from financing activities 1,577,800 2,360,416
_________ _________
(Decrease)/increase in cash and cash
equivalents (20,725) 1,256,804
Cash and cash equivalents at beginning
of year 1,609,219 352,914
Effect of foreign exchange rate changes 1,403 (499)
_________ _________
Cash and cash equivalents at end of year 1,589,897 1,609,219
_________ _________
1. ACCOUNTING POLICIES
Nature of operations
Beowulf Mining plc (the "Company") is domiciled in England. The
Company's registered office is 201 Temple Chambers, 3-7 Temple
Avenue, London, EC4Y 0DT. These consolidated financial statements
comprise the Company and its subsidiaries (collectively the 'Group'
and individually 'Group companies'). The Group is engaged in the
acquisition, exploration and evaluation of natural resources assets
and has not yet generated revenues.
The principal accounting policies applied in the preparation of
these consolidated financial statements are set out below:
Going concern
At 31 December 2017, the Group had a cash balance of GBP1.59
million and the Company had a cash balance of GBP1.51 million.
Management have prepared cash flow forecasts which indicate that
although there is no immediate funding requirement, the Group will
need to raise further funds in the next twelve months for corporate
overheads and to advance its projects.
The Directors are confident they are taking all necessary steps
to ensure that the required finance will be available and they have
successfully raised equity finance in the past. They have therefore
concluded that it is appropriate to prepare the financial
statements on a going concern basis. However, while they are
confident of being able to raise the new funds as they are
required, there are currently no agreements in place, and there can
be no certainty that they will be successful in raising the
required funds within the appropriate timeframe.
These conditions indicate the existence of a material
uncertainty which may cast significant doubt over the Group's and
the Company's ability to continue as a going concern and that it
may be unable to realise its assets and discharge its liabilities
in the normal course of business. The financial statements do not
include any adjustments that would result if the Group and Company
were unable to continue as a going concern.
Basis of preparation
The consolidated financial statements have been prepared in
accordance with applicable International Financial Reporting
Standards as adopted by the European Union ("IFRS") and with those
parts of the UK Companies Act 2006 applicable to companies
reporting under IFRS as adopted by the European Union. The
financial statements are presented in GB Pounds Sterling. They are
prepared on the historical cost basis or the fair value basis where
the fair valuing of relevant assets and liabilities has been
applied.
New and amended standards, and interpretations issued but not
yet effective for the financial year beginning 1 January 2016 and
not early adopted
The standards and interpretations that are issued, but not yet
effective, up to the date of issuance of the financial statements
are listed below. The Group intends to adopt these standards, if
applicable, when they become effective. Unless stated below, there
are no IFRSs or IFRIC interpretations that are not yet effective
that would be expected to have a material impact on the Group.
Standard Effective Date
IFRS 15 Revenue from Contracts with Customers 01-Jan-18
IFRS 9 Financial Instruments 01-Jan-18
IFRS 16 Leases 01-Jan-19
The only standard which is anticipated to be significant or
relevant to the Group is IFRS 9 "Financial Instruments", the Group
is in the process of assessing the impact of the standard on the
Financial Statements. Both IFRS 15 and IFRS 16 are not expected to
have a material impact on the Group at this stage of the Group's
operations.
For the year ending 31 December 2018, IFRS 9 "Financial
Instruments" introduces significant changes to the classification
and measurement requirements for financial instruments. The new
standard will replace existing accounting standards. It is
applicable to financial assets and liabilities and will introduce
changes to existing accounting concerning classification,
measurement and impairment (introducing an expected credit loss
method). This could impact on the Company balance sheet in respect
of the carrying value of intercompany debtors, because it is
unlikely that the assessment of expected credit loss will support a
nil exposure to credit loss.
Significant accounting judgements, estimates and assumptions
The preparation of the financial statements requires management
to make judgements, estimates and assumptions that affect the
amounts reported for income and expenses during the year and the
amounts reported for assets and liabilities at the balance sheet
date. However, the nature of estimation means that the actual
outcomes could differ from those estimates.
The principal source of risk and estimation uncertainty is that
the exploitation concession for Kallak North will not be awarded.
The board has considered the impairment indicators as outlined in
the Company's accounting policies and having done so is of the
opinion that the current situation does not qualify as an
impairment indicator and hence no impairment provision is required
for this permit (see note 3).
The other key areas of judgement and sources of estimation
uncertainty that have a significant risk of causing material
adjustment to the carrying amounts of assets and liabilities within
the next financial year are the assessment of any impairment of
intangible assets, the estimation of share-based payment costs and
the treatment of the acquisition of Fennoscandian. In respect of
these items:
(i) The Group determines whether there are any indicators of
impairment of intangible assets on an annual basis (see note 3);
and
(ii) The estimation of share-based payments requires the
selection of an appropriate model, consideration as to the inputs
necessary for the valuation model chosen and the estimation of the
number of awards that will ultimately vest.
Basis of consolidation
(i) Subsidiaries and acquisitions
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries) made up to 31 December each year. Control is
recognised where an investor is exposed, or has rights, to variable
returns from its investment with the investee, and has the ability
to affect these returns through its power over the investee.
On acquisition, the assets, liabilities and contingent
liabilities of a subsidiary are measured at their fair value at the
date of acquisition. Any excess of the cost of the acquisition over
the fair values of the identifiable net assets acquired is
recognised as goodwill. If the cost of the acquisition is less than
the fair value of net assets of the subsidiary acquired, the
difference is recognised directly in profit or loss.
The results of subsidiaries acquired or disposed of during the
year are included in the statement of comprehensive income from the
effective date of acquisition, or up to the effective date of
disposal, as appropriate.
Non-controlling interests in subsidiaries are presented
separately from the equity attributable to equity owners of the
parent Company. When changes in ownership in a subsidiary do not
result in a loss of control, the non-controlling shareholders'
interests are initially measured at the non-controlling interests'
proportionate share of the subsidiaries net assets. Subsequent to
this, the carrying amount of non-controlling interests is the
amount of those interests at initial recognition plus the
non-controlling interests' share of subsequent changes in equity.
Total comprehensive income is attributed to non-controlling
interests even if this results in the non-controlling interests
having a deficit balance
(ii) Transactions eliminated on consolidation
Intra-Group balances and any unrealised gains and losses or
income and expenses arising from intra-Group transactions are
eliminated in preparing the consolidated financial statements.
Intangible assets - deferred exploration costs
All costs incurred prior to the application for the legal right
to undertake exploration and evaluation activities on a project are
expensed as incurred.
Exploration and evaluation costs arising following the
application for the legal right, are capitalised on a
project-by-project basis, pending determination of the technical
feasibility and commercial viability of the project. Costs incurred
include appropriate employee costs and costs pertaining to
technical and administrative overheads.
Exploration and evaluation activity includes:
-- researching and analysing historical exploration data;
-- gathering exploration data through topographical, geochemical and geophysical studies;
-- exploratory drilling, trenching and sampling;
-- determining and examining the volume and grade of the resource;
-- surveying transportation and infrastructure requirements; and
-- conducting market and finance studies.
Administration costs that are not directly attributable to a
specific exploration area are expensed as incurred.
Deferred exploration costs are carried at historical cost less
any impairment losses recognised. When a project is deemed to no
longer have commercially viable prospects to the Group, deferred
exploration costs in respect of that project are deemed to be
impaired and written off to the statement of comprehensive
income.
Impairment
Whenever events or changes in circumstance indicate that the
carrying amount of an asset may not be recoverable an asset is
reviewed for impairment. An asset's carrying value is written down
to its estimated recoverable amount (being the higher of the fair
value less costs to sell and value in use) if that is less than the
asset's carrying amount.
Impairment reviews for deferred exploration and evaluation
expenditure are carried out on a project by project basis, with
each project representing a potential single cash generating unit.
An impairment review is undertaken when indicators of impairment
arise such as:
(i) unexpected geological occurrences that render the resource uneconomic;
(ii) title to the asset is compromised;
(iii) variations in mineral prices that render the project uneconomic;
(iv) substantive expenditure on further exploration and
evaluation of mineral resources is neither budgeted nor planned;
and
(v) the period for which the Group has the right to explore has
expired and is not expected to be renewed.
Property, plant and equipment
Items of property, plant and equipment are stated at historical
cost less accumulated depreciation.
Depreciation is provided at the following annual rates in order
to write off each asset over its estimated useful life.
Plant and machinery - 25 per cent on reducing balance
The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at each balance sheet date.
Investments
Investments that do not have a quoted market price in an active
market and whose fair value cannot be reliably measured are
recognised at cost less any provision for impairment. Fixed asset
investments in subsidiary undertakings and joint venture interests
are stated at cost less provision for any impairment in value.
Financial instruments
The Group classifies financial instruments, or their component
parts, on initial recognition as a financial asset, a financial
liability or an equity instrument in accordance with the substance
of the contractual arrangement. Financial assets and liabilities
are recognised in the statement of financial position when the
Group becomes a party to the contractual provisions of the
instrument.
Trade and other receivables
Trade and other receivables are recorded at their nominal amount
less provision for impairment.
A provision for impairment of trade receivables is established
when there is objective evidence that the Group will not be able to
collect all amounts due according to the original terms of the
receivable. Bad debts are written off when identified.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at
call with banks, and other short term highly liquid investments
with original maturities of three months or less.
Trade payables
Trade payables are stated at amortised cost using the effective
interest method.
Equity instruments
Equity instruments issued by the Company are recorded at the
proceeds received, net of direct issue costs. Where equity
instruments are issued as part of an acquisition they are recorded
at their fair value on the date of acquisition.
Taxation
Current tax, including UK corporation tax and foreign tax, is
provided at amounts expected to be paid (or recovered) using the
tax rates and laws that have been enacted or substantively enacted
by the balance sheet date.
Deferred tax is recognised, using the liability method, in
respect of temporary differences between the carrying amount of the
Group's assets and liabilities and their tax base.
Deferred tax assets and deferred tax liabilities are offset, if
a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to
the same taxable entity and the same taxation authority. Any
remaining deferred tax asset is recognised only when, on the basis
of all available evidence, it can be regarded as probable that
there will be suitable taxable profits, within the same
jurisdiction, in the foreseeable future against which the
deductible temporary difference can be utilised.
Taxation (continued)
Deferred tax is determined using tax rates that are expected to
apply in the periods in which the asset is realised or liability
settled, based on tax rates and laws that have been enacted or
substantially enacted by the balance sheet date.
Current and deferred tax is recognised in the profit or loss,
except when the tax relates to items charged or credited directly
in equity, in which case the tax is also recognised directly in
equity.
Foreign currencies
The individual financial statements of each Group entity are
presented in the currency of the primary economic environment in
which the entity operates (its functional currency). For the
purpose of the consolidated financial statements, the results and
financial position of each entity are expressed in GB Pounds
Sterling which is the presentation currency for the Group and
Company financial statements. The functional currency of the
Company is the GB Pounds Sterling.
In preparing the financial statements of the individual
entities, transactions in currencies other than the entity's
functional currency (foreign currencies) are recorded at the rates
of exchange prevailing on the dates of the transactions. At each
balance sheet date, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at the balance
sheet date.
Exchange differences arising on the settlement of monetary items
and on the retranslation of monetary items are included in the
statement of comprehensive income for the period.
For the purpose of presenting consolidated financial statements,
the assets and liabilities of the Group's foreign operations are
expressed in GB Pounds Sterling using exchange rates prevailing at
the balance sheet date. Income and expense items are translated at
the average exchange rates for the period. Exchange differences
arising, if any, are classified as other comprehensive income and
are transferred to the Group's translation reserve.
Foreign currency movements arising from the Group's net
investment, which comprises equity and long-term debt, in
subsidiary companies whose functional currency is not the GB Pounds
Sterling are recognised in the translation reserve, included within
equity until such time as the relevant subsidiary company is sold,
whereupon the net cumulative foreign exchange difference relating
to the disposal is transferred to profit and loss.
Share-based payment transactions
Where equity settled share options are awarded to employees, the
fair value of the options at the date of grant is charged to the
income statement over the vesting period. Non-market vesting
conditions are taken into account by adjusting the number of equity
instruments expected to vest at each balance sheet date so that,
ultimately, the cumulative amount recognised over the vesting
period is based on the number of options that eventually vest.
Market vesting conditions are factored into the fair value of all
options granted. As long as all other vesting conditions are
satisfied, a charge is made irrespective of whether market vesting
conditions are satisfied. The cumulative expense is not adjusted
for failure to achieve a market vesting condition.
Where terms and conditions of options are modified before they
vest, the increase in the fair value of the options, measured
immediately before and after the modification, is also charged to
the income statement over the remaining vesting period.
Where equity instruments are granted to persons other than
employees, the income statement or share premium account, if
appropriate, are charged with the fair value of goods and services
received.
2. BASIC AND DILUTED LOSS PER SHARE
The calculation of basic and diluted loss per share at 31
December 2017 was based on the loss attributable to ordinary
shareholders of GBP1,038,248 (2016: GBP632,125) and a weighted
average number of Ordinary Shares outstanding during the period
ended 31 December 2017 of 518,728,856 (2016: 472,525,290)
calculated as follows:
2017 2016
GBP GBP
Loss attributable to ordinary
shareholders (1,038,248) (632,125)
__________ __________
Weighted average number of ordinary shares
Number Number
Number of shares in issue at the beginning
of the year 502,630,331 430,313,824
Effect of shares issued during year 16,098,525 42,211,466
Weighted average number of ordinary
shares in issue __________ __________
for the year 518,728,856 472,525,290
__________ __________
As detailed in note 5, the Company issued 2.1 million shares
post year end, these shares would have an anti-dilutive effect.
There is no difference between the diluted and non-diluted loss per
share.
3. INTANGIBLE ASSETS - Group
Exploration
Costs
GBP
COST
At 1 January 2016 5,588,270
Additions for the year 968,460
Foreign exchange movements 629,846
________
At 31 December 2016 7,186,576
________
At 1 January 2017 7,186,576
Additions for the year 1,077,815
Foreign exchange movements 109,972
Impairment (183,131)
________
At 31 December 2017 8,191,232
________
NET BOOK VALUE
At 31 December 2017 8,191,232
________
At 31 December 2016 7,186,576
________
The net book value of exploration costs is comprised of
expenditure on the following projects:
2017 2016
GBP GBP
Kallak 6,979,844 6,438,283
Nautijaur - 24,912
Åtvidaberg 253,778 153,927
Ågåsjiegge 7,365 7,257
Sala 2,634 2,372
Haapamäki 231,132 141,944
Kolari1 151,706 99,554
Piippumäki - 119,087
Viistola 147,784 107,369
Pitkäjärvi 414,372 91,871
Joutsijärvi 2,617 -
________ ________
8,191,232 7,186,576
________ ________
Total Group exploration costs of GBP8,191,232 are currently
carried at cost in the financial statements. The Group will need to
raise funds and/or bring in joint venture partners to further
advance exploration and development work. An amount of GBP156,382
was recorded against the projects for services provided by the
Directors during the year.
During the year an impairment provision was recognised totalling
GBP183,131 (2016: GBPNil).
Accounting estimates and judgements are continually evaluated
and are based on a number of factors, including expectations of
future events that are believed to be reasonable under the
circumstances.
In accordance with its accounting policies and processes, each
asset is evaluated annually at 31 December, to determine whether
there are any indications impairment exist, the board considers the
indications as outlined in IFRS 6.
The most significant risk is that an exploitation concession is
declined for Kallak North. The board has considered the impairment
indicators as outlined in the Company's accounting policies and
having done so is of the opinion that the current situation does
not qualify as an impairment indicator and hence no impairment
provision is required for this permit
Additional consideration was given to the decision by the County
Administrative Board ("CAB") on the 30 November 2017 to not
recommend that an exploitation concession be awarded to the
Company. It should be noted that the CAB does not have the final
decision, that rests with the Government. The CAB's decision
included information not based on fact, flawed analysis, and biased
conclusions that contradicted its previous representations provided
in July 2015. The key biases include;
-- Operating outside their mandate with respect to assessing
transport matters at this stage of permitting and suggesting the
need for State investment should Kallak be built. The Company has
never stated that State support would be needed. The CAB ignored
infrastructure projects that are already under consideration e.g.
Inlandsbanan Railway, the Ore Railway and the Port of Luleå, all of
which will bring additional capacity to regional infrastructure,
which could be utilised by Kallak.
-- Disregarding Kallak's designation as an Area of National
Interest (ANI") awarded by the SGU in February 2013.
-- Disregarding the strong economic case, that would have local,
regional and national benefits, that the CAB presented in July
2015.
The Directors therefore consider that the decision of the CAB is
not an impairment indicator as the comments and findings of the CAB
represent a recommendation to Government that should have limited
to no persuasive impact due to the inaccuracies, flawed analysis
and conclusions the CAB has presented.
Post year end, the Company's application is now with the
Government. The Company, and other interested parties, were invited
to provide comments on the CAB's statement, which the Company
submitted on 2 February 2018. At the date of approval of the
financial statements the Government's consideration of the
application was ongoing.
In the year an impairment provision of GBP183,131 (2016: GBPNil)
was made against costs incurred on Pippumäki (GBP155,510) and
Nautijaur (GBP27,621) on the basis that no further exploration
would be carried out on those projects. The impairment is charged
as an expense and included within the consolidated income
statement.
4. SHARE CAPITAL
2017 2017 2016 2016
Number GBP Number GBP
Allotted, called up and
fully paid
At 1 January 502,630,331 5,026,302 430,313,824 4,303,138
Issued for cash 23,076,923 230,770 66,829,007 668,289
Issued in settlement of
expenses - - 2,937,500 29,375
Issued in option exercise 8,500,000 85,000 - -
Issued for acquisition
of subsidiary - - 2,550,000 25,500
__________ __________ __________ __________
At 31 December 534,207,254 5,342,072 502,630,331 5,026,302
__________ __________ __________ __________
The par value of all Ordinary Shares in issue is GBP0.01.
The Company has removed the limit on the number of shares that
it is authorised to issue in accordance with the Companies Act
2006.
Shares issued in 2017
On 17 October 2017, the Company announced that Bevan Metcalf a
Director, had been issued 8,500,000, as a result of the exercise of
options.
On 17 May 2017, the Company announced a subscription to raise
GBP1.5m (before expenses) through the issue of 23,076,923 new
ordinary shares of 6.5 pence each.
Shares issued in 2016
On 11 January 2016, the Company issued 2,100,000 million new
ordinary shares of 6.4 pence each, in connection with its
acquisition of Fennoscandian.
On 11 February 2016, the Company issued 729,329 new ordinary
shares of 6.4 pence each. This included the issue of 450,000 new
ordinary shares being the deferred payment in connection with its
acquisition of Fennoscandian and 279,329 new ordinary shares in
satisfaction of the professional fees.
On 25 February 2016, the Company announced that it had raised
GBP1.25 million before expenses and issued 38,461,538 new ordinary
shares at a price of 3.25 pence per new ordinary share.
On 2 March 2016, the Company announced that the over-allotment
option announced on 25 February 2016, was exercised on 29 March by
the Company in respect of 7,692,307 new ordinary shares at a price
of 3.25 pence per new ordinary share raising GBP0.25 million before
expenses.
On 21 December 2016, the Company announced a subscription for
GBP1m (before expenses). Pursuant to the subscription, the Company
issued to Swedish investors 20,000,000 ordinary shares of 1.0 pence
each to raise approximately GBP860,000 (before expenses) at a price
of 0.5 SEK per ordinary share and to 3,333,333 ordinary shares to
UK investors to raise approximately GBP140,000 (before expenses) at
a price of 4.2 pence per new ordinary share.
5. EVENTS AFTER THE REPORTING DATE
On 22 February 2018, 2.1 million ordinary shares of 1.0 pence
were issued to Rasmus Blomqvist, the Company's Exploration manager,
as a first tranche of deferred consideration pursuant to the
acquisition of Oy Fennoscandian Resources AB. The second and final
tranche of 2.1 million ordinary shares of 1.0 pence will be issued
subject to competition of a bankable feasibility study on one of
the graphite projects in the Fennoscandian portfolio.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AJMMTMBTBTFP
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