TIDMBEM
RNS Number : 1118W
Beowulf Mining PLC
15 April 2019
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.
15 April 2019
Beowulf Mining plc
("Beowulf" or the "Company")
Management Update - Kallak and Vardar Minerals
Beowulf (AIM: BEM; Spotlight: BEO), the Nordic focused mineral
exploration and development company, provides an update on its
application for an Exploitation Concession for the Kallak North
Iron Ore Project ("Kallak") and its investment in Vardar Minerals
Limited ("Vardar").
Kallak
The Company is actively communicating with the Government with
regards to the Exploitation Concession for Kallak North. It has
been confirmed that the Kallak application is being prioritised, an
acknowledgement by the Government that the Company has been waiting
an excessive period of time for a decision. The Company expects,
and it is reasonable to do so, that a decision will be taken, by
the Government, before the summer.
Further to the CEO's recent attendance at the seminar in Luleå
launching the report on the OECD's Rural Policy Review 'Linking the
Indigenous Sami People with Regional Development in Sweden', the
Company has been following up with politicians in Norrbotten who
have a vested interest in bringing investment to the region. The
Company has also contacted groups such as Invest in Norrbotten,
Luleå Näringsliv and Luleå Chamber of Commerce, with whom the
Company has maintained contact over recent years, and who also seek
to attract investment to the region.
The Company is maintaining close contact with the Mayor of
Jokkmokk.
Investment in Vardar
On 6 November 2018, Beowulf announced that it had acquired a
14.1% interest in Vardar for the consideration of GBP250,000,
satisfied in cash. The Company's investment enabled Vardar to
complete its 2018 exploration programme.
Beowulf has now exercised its option to increase its ownership
in Vardar Minerals to 31.3% for the consideration of GBP500,000,
satisfied in cash, and has committed a further GBP250,000 to
increase the Company's ownership to approximately 37.6%, fully
funding Vardar's 2019 Kosovan exploration programme at the
Mitrovica and Viti projects. The Company has an option to invest a
further GBP115,000, which would increase its ownership to
40.1%.
At Mitrovica, further geological mapping will commence next
week, and drilling will start towards the end of April, targeting
lead-zinc mineralisation in the north of the licence area, the Wolf
Mountain target. Soil sampling and geochemical analysis will be
undertaken covering possible porphyry targets in the south of the
licence area, to be followed with Induced Polarisation/Direct
Current Resistivity ("IP/DC").
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"As we seem to be approaching a final decision on Kallak, we are
doing everything we can to make sure the facts of our case are
understood, and, if they are, then there should be no impediment to
the award of the Concession.
"Common sense would dictate that if you allow a Company to
invest SEK 77 million in Sweden, in a quality iron ore project such
as Kallak, and a community such as Jokkmokk, with its significant
economic challenges, and you have Mining Inspectorate's
recommendation that the Concession be awarded, then all the boxes
have been ticked.
"The Mayor of Jokkmokk is desperate to see the Kallak project
advance and the Company wants to play its part in giving Jokkmokk a
bright future, no more than it deserves, and developing a modern,
sustainable and innovative mine in partnership with the community,
that Sweden can be justly proud of.
"We are looking forward to Vardar's exploration programme in
Kosovo getting underway, especially the drilling planned for the
Wolf Mountain lead-zinc target at Mitrovica. We have increased our
investment in Vardar based on our excitement with the findings to
date and the evident potential of the Mitrovica and Viti projects.
Already, the Company's move into the Balkans is attracting interest
from institutional funds, keen to understand what we are doing and
what our plans are for the future.
"We look forward to keeping shareholders updated on our
progress."
An interview with Kurt Budge can be found at the following
link:
https://www.brrmedia.co.uk/broadcasts-embed/5cb0b2a4eb566331974d6ab6/event/?popup=true
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Officer Tel: +44 (0) 20 3771 6993
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Soltan Taniev Tel: +44 (0) 20 3470 0470
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.
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END
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