TIDMBEM
RNS Number : 7482Y
Beowulf Mining PLC
17 May 2021
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation ("MAR") (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
17 May 2021
Beowulf Mining plc
("Beowulf" or the "Company")
Audited Financial Results for the year ended 31 December
2020
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces its audited financial results for
the year ended 31 December 2020. The Chairman's statement, review
of operations and activities, and financial information have been
extracted from the Company's Annual Report for the year ended 31
December 2020.
The Annual General Meeting of the Company will be held at the
offices of One Advisory Limited, 201 Temple Chambers, 3-7 Temple
Avenue, London, EC4Y 0DT on 18 June 2021 at 11.00 a.m. Subject to
any change in government restrictions arising from the Covid-19
pandemic, we would at present advise against shareholder
attendance. The Board strongly encourages shareholders to submit
their votes in advance by proxy.
The 2020 Annual Report, Notice of AGM and Form of Proxy will be
posted to those shareholders who have requested a copy and will be
available on the Company's website today
(https://beowulfmining.com/).
Enquiries
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 7583
Officer 8304
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Stuart Gledhill Tel: +44 (0) 20 3470
/ Adam Cowl 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
forecast.
CHAIRMAN'S STATMENT
Dear Shareholders
Beowulf closed 2020 with a fully subscribed Capital Raising. The
Company achieved its target of SEK 83 million, with strong support
from Nordic investors who provided approximately 80 per cent the
total funds.
Despite exploration activity being limited during the year,
Vardar made excellent progress in Kosovo, with geophysics results
delivering a plethora of exploration targets.
Fennoscandian has widened its focus to a broader/Circular
Economy strategy, to add to its developing resource/production base
of natural flake graphite in Finland .
Progress with Kallak was limited, as the Government's attention
was rightly diverted to the pandemic. The big news was the
criticism of the Government's handling of the Kallak application by
the Constitutional Committee ("KU"), which was slightly preceded in
late October, with the Government deciding to consult UNESCO on the
Company's application. A response is still awaited from UNESCO
.
Vardar Minerals ("Vardar")
Vardar gives Beowulf strategic investment exposure to the highly
prospective Tethyan Belt. During 2020, the Company invested a
further GBP380,000 funding geophysics programmes at Mitrovica and
Viti, taking the Company's ownership to approximately 46.1 per cent
at year end.
In February 2021, the Company invested an additional GBP200,000
to fund preparatory works in advance of drilling this year. Post
year end, the Company owns approximately 48.4 per cent of
Vardar.
In Summer 2020, assay results were announced from soil and grab
samples across Majdan Peak at Mitrovica. An extensive gold in soil
anomaly was defined embracing an area approximately 1400 m x 700 m,
correlating with mapped hydrothermal alteration. Furthermore, a new
lead-zinc-copper-gold target was identified to the south of Majdan
Peak; of significance given its proximity to the Stan Terg
mine.
Towards the end of the year, the Company published a sequence of
announcements with results from Induced Polarisation ("IP ") -
resistivity ground surveys, coupled with 'state-of-the-art'
high-resolution airborne magnetic drone surveys for lead-zinc
targets at Wolf Mountain and gold at Majdan Peak in Mitrovica, and
copper-gold at Viti . The results of the IP surveys were extremely
positive which defined numerous targets for drill testing .
At Wolf Mountain, IP chargeability zones were defined beneath
areas of laterally extensive lead-zinc gossans and hydrothermal
alteration. Established regional structural trends suggests they
may be representative of high-grade lead-zinc-silver feeder
structures.
At Majdan Peak, highly anomalous IP chargeability targets were
defined beneath an area of mapped hydrothermal alteration
correlating with the significant gold in soils anomaly.
Importantly, the IP anomalies demonstrate depth extent suggesting
that the mapped surficial gold mineralisation is related to a
potentially large underlying source.
At Viti, chargeability anomalies associated with an extensive
north-northwest trending zone of alteration and anomalous
multi-element soil sample and rock grab sample results were
defined, situated near to gold and copper mineralisation,
associated with altered porphyritic trachyte dykes, intersected by
stratigraphic drilling in 2019.
With these results, the correlation of the IP anomalies with
anomalous metals in soils and mapped alteration, the potential
grows for discovering lead-zinc and gold deposits and defining much
larger mineralised systems at both Mitrovica and Viti. There is no
shortage of high priority targets for drill testing in 2021.
Fennoscandian Resources ("Fennoscandian")
Fennoscandian is developing a resource and production base of
graphite that can provide security of supply and contribute to
Finland's ambitions of achieving self-sufficiency in lithium-ion
battery manufacturing, focusing on both natural flake graphite
production and a Circular Economy/recycling strategy to produce
high-value graphite products.
Since Fennoscandian was acquired in January 2016, Beowulf has
invested over EUR2.2 million in graphite exploration, resource
development, metallurgical testwork and the assessment of market
applications for graphite from Aitolampi, including lithium-ion
battery applications .
Fennoscandian has recently signed a Memorandum of Understanding
("MoU") with Epsilon Advance Materials Limited ("EAMPL"). The MoU
enables Fennoscandian to build its downstream capability,
collaborating with a strong and innovative technology/processing
partner, and for EAMPL to firmly establish itself in Finland, as a
market-entry point for supplying pre-cursor anode material into
Europe. The MoU addresses the development of a strategic processing
hub for both natural flake and recycled graphite to be located in
Finland.
In addition, a Scoping Study contract for the Aitolampi graphite
project has been awarded to AFRY Finland Oy. The purpose of the
Scoping Study is to verify the robustness of the work completed by
Fennoscandian, and to provide a roadmap for the next project
development stage, most likely a Pre-feasibility Study. The output
of the Scoping Study will enable Fennoscandian to share information
on the Aitolampi project and communicate with the local community
and other important stakeholders.
Kallak
2020 was another frustrating year , with no evidence of any
progress being made with the Company's Kallak application . Beowulf
continued to engage with the Swedish Government , but COVID-19
diverted its attention to fighting the pandemic.
The Constitutional Committee ("KU"), which has been reviewing
the Government's handling of the Kallak application met 26 November
2020 and made the following statement (translation):
"KU has examined the application for a processing concession for
Kallak. In the Government case, no visible administrative measures
were implemented for almost three years. This means a delay that is
not acceptable, according to KU.
" It also appears that the applicant has on several occasions
asked the Ministry of Trade and Industry for a meeting. The
Ministry has then stated that this is not possible because the
issue concerns a forthcoming Government decision and is a matter
under consideration.
" KU notes that the Ministry management's statement does not
seem to be in line with what the Prime Minister has stated. The
Government Offices thus seem to lack a common approach to the
possibility for parties in administrative matters to have a meeting
with the responsible ministry."
A month prior to the KU's statement, the Government consulted
with UNESCO on the Company's application . While the KU's statement
will have no bearing on the final decision, the Company believes
that once comments are received back from UNESCO a decision will be
'forthcoming', language used by the Minister in September 2019. The
Company has been in communication with UNESCO regarding its review
of Kallak.
Since the KU statement last November, political parties outside
of Government are taking a greater interest in the case and, with
the support of our advisers, we continue to inform and educate on
the facts about Kallak and dispel the perceptions that exist.
Drilling planned for 2020 as part of the European Union ("EU")
funded PACIFIC Project ("PACIFIC") was delayed until this year. The
work programme will determine if a 3D seismic model can be
constructed, using the established seismic characteristics of the
Kallak deposit, and whether the 3D model can be used to identify
additional iron ore mineralisation for the Exploration Target at
Kallak South and further south, following the magnetic signature of
mineralisation which extends into the Company's Parkijaure nr 6
exploration licence.
There is clear potential for the mine life at Kallak to be much
greater than the 14 -years included in the Kallak North
application. As can be seen with LKAB's operations at Kiruna, which
have lasted over a century, new resources are typically identified
after a mine is opened which support further investment and jobs
over decades. Mines in the north of Sweden operate in this way and
are very much part of the fabric of society.
Shareholder Base
At 31 December 2020, there were 592,321,687 Swedish Depository
Receipts representing 71.52 per cent of the issued share capital of
the Company. The remaining issued share capital of the Company is
held in the UK
Raising Finance
Maintaining sufficient funding to sustain the business is a
significant challenge for an exploration and development company in
the natural resources sector.
The Company announced, on 13 August 2020, that it had secured
bridge loan financing in Sweden of SEK 12 million (approximately
GBP1.0 million) from Nordic investors . Since 2014, this has been
the only divergence from equity capital markets fundraising. The
bridging loan demonstrated the availability of alternative
financing to the Company and good support from a group of Nordic
investors , who went on to underwrite the SDR offer and buy shares
via a Private Placement/Directed Issue in last year's Capital
Raising.
The Company announced details of the Capital Raising, on 6
November 2020 and that it would conduct an Open Offer of up to
225,841,752 new Ordinary Shares to Qualifying Shareholders at 3.16
pence per Share (the "Offer Price") on a pre-emptive basis to raise
up to approximately GBP7.3 million (gross) (the "Open Offer").
On 21 December 2020, the Company closed a fully subscribed
Capital Raising of approximately GBP7.4 million before expenses
(approx. SEK 83 million).
The Board continues to adopt the going concern basis to the
preparation of the financial statements. The going concern
assumption has been assessed by the Directors in light of the
impact of COVID-19, taking into consideration the current financial
position, ability to carry out its operations for the year and
raise new funds. The Directors are confident that there is no
immediate need for funding following the success of the Capital
Raising.
2020 Financial Performance
For the year, the consolidated loss increased from GBP428,707 in
2019 to GBP1,294,691. This increase was attributable to three main
factors:
1. As a subsidiary, no fair value gain on investments in Vardar
was accounted for, as compared to a prior year fair value gain of
GBP563,431.
2. In relation to the Bridging Loan, there was a finance charge of GBP203,321; and
3. A higher impairment charge on Ågåsjiegge, Joutsijärvi,
Polvela and Tammijärvi (GBP98,799) compared to the impairment
charge in the prior year on Sala (GBP10,270 ).
Administration expenses increased in the year from GBP904,667 to
GBP1,005,547, due mostly to more corporate time being devoted to
the Capital Raising and less time being spent on projects . This
resulted in a lower level of underlying exploration cost being
capitalised.
Consolidated basic and diluted loss per share for the 12 months
ended 31 December 2020 was 0.19 pence (2019: loss of 0.04
pence).
GBP4,329,414 in cash was held at the year-end (2019:
GBP1,124,062).
At 31 December 2020 trade and other receivables of the Group
included an amount of GBP1,392,081 relating to proceeds received in
early January 2021 from issues of shares before the year end (2019:
GBPnil).
The translation reserve losses attributable to the owners of the
parent decreased from GBP1,291,068 at 31 December 2019 to
GBP457,813 at 31 December 2020. Much of the Company's exploration
costs are in Swedish Krona which has strengthened against the pound
since 31 December 2019.
Corporate
On 10 November 2020, the Company announced that Göran Färm was
stepping down from the Board and as Non-Executive Chairman, and I
joined Beowulf as a Non-Executive Chairman and a Director of the
Company.
Staff and Employees
On behalf of the Board, and especially given the pandemic, I
would like to express my sincere thanks to our staff , employees
and consultants in Sweden and Finland, and also to the staff ,
employees and consultants of Vardar, for their significant efforts
throughout the past 12 months to drive our Company forwards.
ESG
Beowulf is a strong supporter of the Sustainable Development
Goals ("SDGs") and is currently reviewing how the Company can best
proactively support their implementation in our regions of
operation
The Company has adopted the following Disclosure Topics listed
by the Sustainability Accounting Standards Board for the Metals and
Mining sector ( https://www.sasb.org/standards/ ) as material to
the Company's stakeholders:
-- Energy Management including Green House Gas Emissions;
-- Water Management;
-- Biodiversity Impacts;
-- Rights of Indigenous Peoples;
-- Community Relations; and
-- Business Ethics and Transparency.
As at this time Beowulf has no active mining operations, these
Disclosure Topics will be integrated into the Company's policies,
corporate strategy, project development plans and management
systems.
As the Company moves forward with its ESG agenda, it will be
transparent in its communications, the progress it is making, and
sustainability results.
Outlook
We are at a tipping point where global issues are converging to
drive demand for primary raw materials. Metals are critical to
achieving the transition to a Green Economy to address the Climate
Emergency; transparent, secure, and sustainable supply chains need
to be established; and Governments are considering how to power
economic growth in a post-pandemic recovery.
Sustainability leadership is renewing the role of business in
society and its unique ability to solve society's problems and
scale-up solutions. When it comes to the Climate Emergency, all of
us are in this together, we each need to do things differently, to
play our part and not leave it to others to fix the problem.
Beowulf's purpose to be a responsible and innovative company
that creates value for our shareholders, wider society and the
environment, through sustainably producing critical raw materials,
which includes iron ore, graphite and base metals, needed for the
transition to a Green Economy and to address the Climate
Emergency.
Vardar is developing prospects that could deliver new metal
supply to Europe.
Fennoscandian is well-positioned in the Finnish battery
ecosystem as a potential future supplier of anode material for
lithium-ion batteries .
Kallak is ideally situated as a secure and sustainable supply of
high-quality iron ore to the growing fossil-free steel making
sector powered by renewables in Sweden. Kallak can produce a market
leading concentrate of 71.5 per cent iron content.
We have started this year financially strong, with a renewed
sense of purpose. We have an attractive portfolio of projects to
explore and develop and we have big ambitions. The Climate
Emergency has our attention and is focusing our minds on what we
need to do. It very much feels like it is Beowulf's time to
step-up, respond to challenges facing all of us and make a positive
difference. It will be an exciting year for the Company.
Sven Otto Littorin
Non-Executive Chairman
14 May 2021
REVIEW OF OPERATIONS AND ACTIVITIES
KOSOVO
Vardar Minerals Limited
Vardar provides Beowulf with investment exposure to the highly
prospective Tethyan Belt. During 2020, the Company invested
GBP380,000 , funding geophysics programmes at Mitrovica and Viti.
More recently, in February 2021, the Company invested a further
GBP200,000 to fund preparatory works in advance of drilling this
year. At the date of sign-off of this report, the Company owns
approximately 48.4 per cent of Vardar.
Beowulf's investments and increasing ownership in Vardar are
testament to the Company's confidence in the progress being made by
the Vardar team, exploration results and the potential shown for a
mineral deposit(s) discovery at Mitrovica and Viti.
At Mitrovica, located near to the world class Stan Terg
lead-zinc-silver mine, potential not only exists for the discovery
of additional lead-zinc-silver deposits, but also for the discovery
of high-level epithermal gold deposits and for copper-zinc
deposits.
It is simplistic to think of the targets at Mitrovica, which
occur along a seven kilometres trend, in isolation. However, Vardar
believes the targets are all related to a potentially much larger
porphyry style mineralised system, based on meticulous geological
mapping of hydrothermal alteration and interpretation of trench,
drill and soil geochemical and geophysical exploration data.
At Viti, stratigraphic holes in 2019, intersected the correct
alteration type, returning gold and visible copper mineralisation,
that indicates potential for the discovery of a mineralised
copper-gold porphyry in a hitherto unexplored area.
Kosovan Exploration Permits
Vardar has a rolling programme of exploration permit
applications and renewals.
As original permits were awarded around the same time, all
renewals have become due around the same time. Vardar's renewal
applications have also coincided with a changeover in personnel on
the board of The Independent Commission for Mines and Minerals
("ICMM"), the permitting authority in Kosovo. The ratification of a
new board has been delayed because of parliamentary elections,
which took place in February 2021. It is hoped that the new board
will soon be confirmed.
Name Licence Area (hectares) Notes
no.
Mitrovica Renewal application accepted, awaiting
(2231) 2231 2,713.51 final approval by ICMM board.
-------- ---------------- ---------------------------------------
Mitrovica Renewal application accepted, awaiting
(2541) 2541 130.20 final approval by ICMM board.
-------- ---------------- ---------------------------------------
Viti North Renewal application accepted, awaiting
(2230) 2230 3,546.74 final approval by ICMM board.
-------- ---------------- ---------------------------------------
Viti West Renewal application accepted, awaiting
(2345) 2345 5,207.78 final approval by ICMM board.
-------- ---------------- ---------------------------------------
Viti SE Renewal application accepted, awaiting
(2344) 2344 8,829.91 final approval by ICMM board.
-------- ---------------- ---------------------------------------
Exploration Overview
The Mitrovica and Viti projects are located within the Tethyan
Belt, a major orogenic metallogenic province for gold and base
metals which extends from the Alps (Carpathians/Balkans) to Turkey,
Iran and Indochina, and contains several world class
discoveries.
The Tethyan Belt of south-east Europe can be regarded as
Europe's chief copper-gold (lead-zinc-silver) province. Mitrovica
and Viti occur within calc-alkaline magmatic arc(s) which developed
during the closure of the Neotethys Ocean, primarily targeting
epithermal gold, lead-zinc-silver replacement deposits and porphyry
related copper-gold mineralisation.
The lack of modern-day exploration in the Balkans presents a
real opportunity for new mineral deposit discoveries.
Mitrovica
The Mitrovica licence is located immediately to the west and
north west of the world class Stan Terg former lead-zinc-silver
mine, which dates back to the 1930s; with current reserves of 29
million tonnes ("Mt") of ore at 3.45 per cent Pb, 2.30 per cent Zn,
and 80 g/t Ag (ITT/UNMIK 2001 report), together with the past
production of approximately 34 Mt of ore, the deposit represents an
important source of metals in the south eastern part of Europe
(Source: Strmić Palinkaš S., Palinkaš L.A et al, 2013. Metallogenic
Model of the Trepča Pb-Zn-Ag Skarn Deposit, Kosovo: Evidence from
Fluid Inclusions, Rare Earth Elements, and Stable Isotope Data.
Economic Geology, 108, 135-162).
The licence is showing its potential for a range of porphyry
related mineralisation types, including the Majdan Peak
high-sulphidation epithermal gold target, the Wolf Mountain
low-sulphidation lead-zinc-silver target and the Mitrovica South
base and precious metal target in the southern part of the licence
area. Vardar believes all the targets are related to a potentially
much larger porphyry style mineralised system.
Wolf Mountain
The Wolf Mountain target forms a prominent outcropping feature,
with strike length of more than 4 km and width ranging from almost
20 m to greater than 300 m. It represents a hydrothermal breccia
zone with stockworks, which outcrop as a gossan, with
iron-manganese oxides and hydroxides. The peripheral parts of the
zone are characterised by intense silicification corresponding to
fold structures which control the development of the hydrothermal
breccia.
The mineralisation is structurally controlled, and, for most of
the target, mineralisation is developed in the basement, broadly
following a tectonic contact between ultramafic rocks and phyllite,
and mainly within ultramafic units. Mineralisation is likely
vein/replacement-type related to Oligocene magmatic activity
responsible for the hydrothermal systems mapped in the southern
portion of the licence area.
In October, the Company reported highly anomalous IP
chargeability zones, considered high priority targets for drill
testing, defined beneath areas of laterally extensive Pb-Zn gossans
and hydrothermal alteration.
The IP anomalies are located below, often straddling, the
contact between younger Oligocene volcanoclastic rocks and
ultramafic basement, in agreement with mapped and drill tested
mineralisation, adding further support for a source of the observed
mineralisation.
Importantly, anomalies follow established regional structural
trends suggesting they may be representative of high-grade Pb-Zn-Ag
feeder structures, often a characteristic of the deposit type.
Resistivity results correlate very well with geological mapping,
drilling and trenching, delineating the lateral and vertical extent
of the low resistivity volcanoclastic units over the higher
resistivity ultramafic basement.
In December, the Company announced that an exceptional high
chargeability anomaly had been identified to the east of the main
Wolf Mountain prospect, correlating with anomalous soil samples (up
to 1.0 per cent Zn and 0.5 per cent Pb and rock samples from
gossans (including 3.5 per cent Zn, 1.8 per cent Pb, 93 g/t silver
Ag.
The chargeable source follows a prominent northwest trending
structure which connects to the Zijaca deposit (non-JORC compliant
5.2 Mt containing 2.83 per cent Zn, 2.83 per cent Pb and 16 g/t Ag)
located just two kilometres to the southeast and it remains open
ended to the northwest.
Results to date suggest that the Wolf Mountain prospect covers a
much larger area than previously considered.
Referring back to 2019, a total of 278.5 m of trenching and
1,609 m of drilling were completed at Wolf Mountain. Drilling and
trenching results confirmed extensive lead-zinc-silver
mineralisation over an area of 800 m in length and 400 m in
width.
Trenching highlights include:
-- Trench WM-T01: 18 g/t silver, 2.01 per cent lead and 3.17 per
cent zinc over 12.5 m, within a longer 51 m in length cross-section
returning 11 g/t silver, 1.43 per cent lead and 1.87 per cent
zinc;
-- Trench WM-T02: 14 g/t silver, 3.6 per cent lead and 0.64 per cent zinc over 8 m.
Drilling highlights include:
-- Drillhole WM004: 8 g/t silver, 1.27 per cent lead and 0.91
per cent zinc over 6.6 m (estimated true thickness); and
Drillhole WM007: 16 g/t silver, 2.69 per cent lead and 0.4 per
cent zinc over 4.3 m (estimated true thickness).
Results to date suggest that the Wolf Mountain prospect consists
of several structurally controlled targets, often occurring along
geological contacts in the basement rocks and covering a larger
area than previously considered.
Majdan Peak
Majdan Peak is situated in the central portion of the Mitrovica
licence area. Results to date have identified the main Majdan Peak
gold target and a second target to the south, Majdan Peak
South.
In June, the Company reported results from soil sampling which
highlighted epithermal gold potential. An extensive gold anomaly
was identified over an area approximately 1400 m x 700 m, with
individual soil samples returning up to 0.36 g/t gold. The scale
and size of the anomaly, together with coincidental multi-element
anomalies and extensive hydrothermal alteration, are comparable to
significant high-sulphidation epithermal gold deposits within the
region. The gold anomaly correlates well with anomalous arsenic,
copper, lead, mercury, strontium and antimony and geological
mapping has shown the presence of advanced argillic alteration.
In July, Beowulf reported results from a grab sampling
programme. 96 samples were collected from outcrop and subcrop, 42
of which assayed in excess of 0.1 g/t gold. The anomalous results
from this correlate well with gold in soils and alteration
intensity and again confirmed the significant scale of the Majdan
Peak gold anomaly, which remains open to the east.
Sample results over 1 g/t gold include:
-- 7.2 g/t; 4.6 g/t; 2.8 g/t; 2.0 g/t; 1.5 g/t; 1.3 g/t; 1.3 g/t; and 1.1 g/t.
In addition to the primary gold target at Majdan Peak, a new
multi-element anomaly delineated to the south of the main peak
correlates well with anomalous rock grab samples, including samples
with up to 0.79 g/t gold. Galena (lead sulphide) veins are also
apparent in some of the outcropping gossans.
In November, the Company announced results from an IP and
resistivity survey, where highly anomalous chargeability targets
were mapped for both Majdan Peak and Majdan Peak South. These
chargeability targets correlated well with anomalous rock and soil
samples, mapped alteration and zones of demagnetisation identified
by a high-resolution drone magnetic survey. The IP anomalies
demonstrate depth extent and suggest that the mapped surficial gold
mineralisation is related to a potentially large underlying source
which is over 700 m in strike length with significant width and
thickness.
The zones of high resistivity correlate well with mapped
silicification and advanced argillic alteration which appear to
overlay the main IP chargeability target, as would be expected in a
typical high-sulphidation gold deposit. Shallow IP anomalies follow
structural trends mapped in the magnetic data suggesting a
structural control to the distribution of mineralisation which may
link up to the carbonate replacement lead-zinc ore bodies of the
neighbouring Stan Terg deposit.
Mitrovica South
A new lead-zinc-copper-gold target has been identified in the
southern part of the licence, particularly significant given its
proximity, approximately 4 km, to the Stan Terg mine.
The Vardar team has mapped zinc mineralisation associated with
trachyte dykes and soil sampling results, identifying distinctive
zinc, copper, lead, silver, and gold anomalies extending laterally
from known mineralisation, suggest that the mineralised system may
be larger than initially indicated by geological mapping.
Viti
The Viti project is located in south-eastern Kosovo and
encompasses an interpreted circular intrusive, indicated by
regional airborne magnetic data. There is evidence of intense
alteration typically associated with porphyry systems, with several
copper occurrences and stream sample anomalies in proximity to, and
within the project area. In the south-east of the project area,
reconnaissance mapping has identified several zones of intense
argillic alteration, hydrothermal breccias and iron oxide
stockworks.
In In 2019, two stratigraphic holes, totalling 439 m, were
drilled to test for alteration type and potential associated
mineralisation in the gossanous zone, and identified highly altered
trachyte porphyry dykes with associated copper and gold
mineralisation, with down the hole intersections of 1 m at 0.5 g/t
and 10 m at 0.12 g/t.
During the year, the Company reported results from detailed 3D
IP and resistivity surveys undertaken over the Metal Creek
prospect, which forms part of the Viti project. High chargeability
anomalies associated with an extensive north-northwest trending
zone of alteration and anomalous multi-element soil sample and rock
grab sample results were delineated. The newly defined high
chargeability anomalies sit near gold and copper mineralisation,
associated with altered porphyritic trachyte dykes, intersected by
previous stratigraphic drilling. These anomalies could represent
higher grade mineralised zones and Vardar is now planning to drill
two short holes to test chargeability 'hot spots'.
Post-Year End
Beowulf announced on 8 February 2021, that the Company had
invested GBP200,000 to fund preparatory works, building access
roads and drilling platforms, across the Mitrovica licence,
lead-zinc targets at Wolf Mountain and gold targets at Majdan Peak.
It is hoped that drilling can commence in the third quarter of
2021. The investment increased the Company's ownership in Vardar
from 46.1 per cent to 48.4 per cent approximately.
FINLAND
Fennoscandian
Fennoscandian is pursuing a strategy to develop a resource and
production base of graphite that can provide security of supply and
contribute to Finland's ambitions of achieving battery
manufacturing self-sufficiency, focusing on both natural flake
graphite production and a Circular Economy/recycling strategy to
produce high-value graphite products. The Company is also
developing its knowledge in processing and manufacturing
value-added graphite products, including anode material for
lithium-ion batteries.
Since Fennoscandian was acquired by Beowulf in January 2016, the
Company has invested approximately EUR2.2 million in graphite
exploration, resource development, metallurgical testwork and the
assessment of market applications for graphite supplied from its
Aitolampi project, including lithium-ion battery applications.
Finnish Exploration Permits
Fennoscandian has a rolling programme of exploration permit
applications and renewals.
Tukes (the permitting authority) processes the Company's
exploration permit applications, which if deemed satisfactory, are
published as a 'Hearing' for one month, during which time appeals
can be submitted.
With the prevalence of 'not in my backyard' or NIMBYism, the
right of appeal is often exercised, and an Administrative Court
takes over the case.
In the case of Rääpysjärvi 1, Tukes granted a permit on 25 April
2019. On 27 April 2020, the Administrative Court of Eastern Finland
rejected an appeal, but a further appeal has been made to the
Supreme Administrative Court of Finland. The case continues.
Permit Name Licence no. Area (hectares) Notes
Karhunmäki ML2019:0113 964.99 Exploration permit application
1 submitted 31 Dec 2019. Hearing
published 31 March 2021. Deadline
for appeals 3 May 2021.
------------ ---------------- ------------------------------------
Merivaara ML2020:0059 957.20 Exploration permit application
1 submitted
1 Dec 2020.
------------ ---------------- ------------------------------------
Pitkäjärvi ML2016:0040 407.45 Exploration permit granted and
1 appealed.
------------ ---------------- ------------------------------------
Rääpysjärvi ML2017:0104 716.25 Exploration permit granted. Ongoing
1 appeals process.
------------ ---------------- ------------------------------------
Aitolampi (Pitkäjärvi 1 Exploration Permit) - Graphite
Introduction
The Aitolampi graphite project sits within the Pitkäjärvi 1
licence and is located in eastern Finland, approximately 40 km
southwest of the well-established mining town of Outokumpu.
Discovered in 2016, the licence covers an area of graphitic
schists on a fold limb, coincidental with an extensive
electro-magnetic ("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.
Mineral Resource Estimate:
In 2019, Fennoscandian delivered an upgraded Mineral Resource
Estimate ("MRE") for Aitolampi, with an 81 per cent increase in
contained graphite (compared to the 2018 MRE) for the higher-grade
western zone with an Indicated and Inferred Mineral Resource of
17.2 Mt at 5.2 per cent Total Graphitic Carbon ("TGC") containing
887,000 tonnes of contained graphite.
An unchanged Indicated and Inferred Mineral Resource of 9.5 Mt
at 4.1 per cent TGC for 388,000 tonnes of contained graphite for
the eastern lens.
In total, an Indicated and Inferred Mineral Resource of 26.7 Mt
at 4.8 per cent TGC for 1,275,000 t of contained graphite. All
material is contained within two graphite mineralised zones, the
eastern and western lenses, interpreted above a nominal three per
cent TGC cut-off grade.
An augmented global Indicated and Inferred Mineral Resource of
11.1 Mt at 5.7 per cent TGC for 630,000 t of contained graphite,
reporting above a five per cent TGC cut-off, based on the
grade-tonnage curve for the resource.
The Mineral Resource was estimated by CSA Global of Australia
following the guidelines of the JORC Code 2012 edition. See table
below:
Zone Classification Mt TGC S Density Contained
% % (t/m(3) graphite
) (kt)
Western
lens Indicated 9.2 5.1 5.0 2.80 468
---------------- ----- ---- ---- --------- ----------
Inferred 8.0 5.2 4.7 2.80 419
-------------------------- ----- ---- ---- --------- ----------
Indicated
+
Inferred 17.2 5.2 4.8 2.80 887
-------------------------- ----- ---- ---- --------- ----------
Eastern
lens Indicated 1.8 4.1 4.4 2.82 74
---------------- ----- ---- ---- --------- ----------
Inferred 7.7 4.1 4.5 2.82 314
-------------------------- ----- ---- ---- --------- ----------
Indicated
+
Inferred 9.5 4.1 4.5 2.82 388
-------------------------- ----- ---- ---- --------- ----------
Indicated
+
TOTAL Inferred 26.7 4.8 4.7 2.81 1,275
---------------- ----- ---- ---- --------- ----------
2020 Summary
During the year, test work on a composite sample for Karhunmäki,
a new graphite prospect, was found by Fennoscandian to produce a
concentrate grade of 96.4 per cent TGC, with 51.3 per cent
large/jumbo flakes (+180 micron). The Company has applied for an
Exploration Permit for the project.
Fennoscandian continued to assess the results of spheroidization
and battery tests on its Aitolampi graphite.
Fennoscandian also joined, as a consortium member, the Business
Finland funded BATTrace project, which aims to improve traceability
along the battery raw materials value chain using
mineralogical/geochemical fingerprinting, to validate responsible
and sustainable sourcing of cobalt, nickel, lithium, and
graphite.
2021 Update
In March 2021, Fennoscandian signed a Memorandum of
Understanding ("MoU") with Epsilon Advance Materials Limited
("EAMPL"). The MoU enables Fennoscandian to build its downstream
capability, collaborating with a strong and innovative
technology/processing partner, and for EAMPL to firmly establish
itself in Finland, as a market-entry point for supplying pre-cursor
anode material into Europe.
A Scoping Study contract for the Aitolampi graphite project has
also been awarded to AFRY Finland Oy. The purpose of the Scoping
Study is to verify the robustness of the work completed by
Fennoscandian, and to provide a roadmap for the next project
development stage, most likely a Pre-feasibility Study. The output
of the Scoping Study will enable Fennoscandian to better explain
the Aitolampi project to the local community and other important
stakeholders.
SWEDEN
Permits
Beowulf, via its subsidiaries, currently holds four exploration
permits, together with one registered application for an
Exploitation Concession, as set out in the table below:
Name Licence Area (hectares) Valid Valid to Notes
no. from
Åtvidaberg 2016:51 12533 30/05/16 30/05/2022 -
nr 1(2,4)
--------- ---------------- --------- ----------- -------------------
Kallak nr 2006:197 500 28/06/06 28/06/2022 Kallak iron ore
1(1) project
--------- ---------------- --------- ----------- -------------------
Parkijaure 2019:81 999 10/10/19 10/10/2022 Exploration ground
nr 6(1,4) to the south
of Kallak
--------- ---------------- --------- ----------- -------------------
Parkijaure 2008:20 285 18/01/08 18/01/2024 Kallak iron ore
nr 2(1) project
--------- ---------------- --------- ----------- -------------------
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) Due to COVID-19, valid exploration permits have been awarded
an additional year to their existing term. The Mining Inspectorate
is yet to complete updating its registers and will directly inform
each permit holder of the change that applies to their respective
permits. As such the extension year, which should extend the term
of these licences to 2023, has not been added to the licence 'Valid
To' dates shown above.
Introduction
The Company's most advanced project is the Kallak magnetite iron
ore deposit located approximately 40 km west of Jokkmokk in the
County of Norrbotten, Northern Sweden, 80 km southwest of the major
iron ore mining centre of Malmberget, and approximately 120 km 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 (the "Exploitation
Concession").
On 17 September 2020, the Company published the market leading
potential of Kallak's magnetite concentrate following an assessment
by Dr. Arvidson MSc Mining/Mineral Processing, PhD Mineral
Processing (equivalent), Royal Institute of Technology, Stockholm,
as Qualified Person.
Kallak is excellently positioned as a secure and sustainable
future supplier of high-quality iron ore powered by renewables to
Sweden's growing fossil-free steel making sector.
The deposit is benefitted by excellent local infrastructure with
all-weather gravel roads passing through the project and forestry
tracks allowing for easy access throughout the licence. 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, passes approximately 40 km to the east.
The Inlandsbanan meets the Malmbanan railway at Gällivare, which
provides routes to the Atlantic harbour at Narvik in Norway or to
the Bothnian Sea harbour at Luleå in Sweden.
Kallak Resource
The Kallak North and Kallak South orebodies are centrally
located and cover an area approximately 3,700 m in length and 350 m
in width, as defined by drilling. The MRE for Kallak North and
South is based on drilling conducted between 2010-2014, a total of
131 holes and 27,895 m.
A 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 iron has been used.
(4) Mineral Resource, which is not Mineral Reserves, has no
demonstrated economic viability.
(5) An exploration target of 90-100 Mt 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 1,100 m
long, from south to north, and, at its widest part in the centre,
is approximately 350 m wide.
The deepest drill hole intercept is located some 350 m below the
surface in the central part of the mineralisation. In the southern
and northern parts, the intercepts are shallower at 150-200 m.
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 750 m from
north to south and has an accumulated width of 350 m. The deepest
drill hole intercept is located some 350 m below the surface in the
southern-most part of the mineralisation. In the southern part, the
mineralisation extends approximately 500 m from north to south and
has a maximum width of just over 300 m. The deepest drill hole
intercept is located some 200 m to 250 m below the surface in the
central part of the mineralisation.
Approximately 800 m in between the southern and northern parts
of Kallak South has not been investigated by systematic drilling.
An exploration target of 90 -100 Mt at 22-30 per cent iron has been
assigned to the area between the southern and northern parts.
2020 Update
Throughout 2020, Beowulf continued to push for a decision from
with the Swedish Government on its application for an Exploitation
Concession, while demonstrating its approach to developing an
innovative, modern, and sustainable mining operation at Kallak. The
Company continued to work with the Mayor in Jokkmokk, Norrbotten
Regional Council Members and Norrbotten Members of Parliament to
lobby the Government.
In May, the Company announced that it had awarded a drilling
contract for Kallak to Kati Oy for up to 1,650 m diamond drilling,
targeting additional potential iron ore mineralisation at Kallak
South. The work programme, now postponed until later in 2021, will
determine if a 3D seismic model can be constructed, using the
established seismic characteristics of the Kallak deposit, and
whether the 3D model can be used to help define additional iron ore
resource. If successful, the set-up could then be applied to the
Exploration Target at Kallak South and further south, following the
magnetic signature of mineralisation which extends into the
Company's Parkijaure nr 6 exploration licence.
There is clear potential for the mine life at Kallak to be much
greater than the 14 -years included in the Kallak North
application. As can be seen with LKAB's operations at Kiruna, which
have lasted over a century, new resources are typically identified
after a mine is opened .
The work is being undertaken as part of the EU funded PACIFIC
Project ("PACIFIC"). The aim of PACIFIC is to develop a new
low-cost and environmentally friendly tool for exploring for
sub-surface mineral deposits. The programme will test a multi-array
method in parallel with drilling at Kallak South, with noise from
drilling providing a passive seismic source
On 17 September 2020, the Company published the market leading
potential of Kallak's magnetite concentrate following an assessment
by Dr. Arvidson as Qualified Person, the highlights of which can be
summarised as follows:
-- testwork on Kallak ore has produced an exceptionally
high-grade magnetite concentrate at 71.5 per cent iron content with
minimal detrimental components;
-- this would make Kallak the market leading high-grade product
among known current and planned future producers;
-- the next best magnetite product is LKAB's (the state-owned
Swedish iron ore company), which produces magnetite fines ("MAF")
with a target specification of 70.7 per cent iron and is regarded
as unique, until now, due to its exceptionally high iron content;
and
-- Kallak magnetite concentrate would reduce the carbon
footprint of traditional steel manufacturing, improve energy
efficiency in any downstream process and reduce waste. Magnetite
has inherent energy content, which ultimately results in lower
energy demand for steel manufacturing when compared to current
common practice.
Globally, the feedstock for steelmaking is 80 per cent. hematite
and 20 per cent. magnetite. The demand for high-quality feedstock
and therefore magnetite should increase as producers look to
protect the environment by improving energy efficiency, minimising
waste and the impact of waste disposal.
The Constitutional Committee ("KU"), which has been reviewing
the Swedish Government's handling of the Company's application for
an Exploitation Concession for Kallak North met in November and
made the following statement (translation):
"KU has examined the application for a processing concession for
Kallak. In the Government case, no visible administrative measures
were implemented for almost three years. This means a delay that is
not acceptable, according to KU.
It also appears that the applicant has on several occasions
asked the Ministry of Trade and Industry for a meeting. The
Ministry has then stated that this is not possible because the
issue concerns a forthcoming Government decision and is a matter
under consideration.
KU notes that the Ministry management's statement does not seem
to be in line with what the Prime Minister has stated. The
Government Offices thus seem to lack a common approach to the
possibility for parties in administrative matters to have a meeting
with the responsible ministry."
A month prior to the KU's statement, the Government consulted
with UNESCO on the Company's application . While the KU's statement
will have no bearing on the final decision, the Company believes
that once comments are received back from UNESCO a decision will be
'forthcoming', language used by the Minister in September 2019. The
Company has been in communication with UNESCO regarding its review
of Kallak.
2021 Outlook
It remains the Directors' view that the Company's application
for an Exploitation Concession fully meets the requirements of the
prescribed process, and that it has done so since the Mining
Inspectorate recommended to the Government, in October 2015, that
the Concession be awarded.
In Sweden, the acknowledged direction of travel is that more
mining is needed to produce the metals to facilitate the transition
to a Green Economy and the electrification of society to address
the Climate Emergency. It would seem illogical to consider that
given this context the Concession, which has been in development
for almost 15 years since the first exploration permit was awarded,
is not granted, despite the inordinate time the Company has had to
wait for a decision.
The Directors believe that the award of the Exploitation
Concession would result in a re-rating of the Company's value and
prospects by investors. The 'big picture' for Kallak is that a mine
could be in production within four to five years.
If the Swedish Government approves the Exploitation Concession,
and with funding from the Capital Raising, the Company's immediate
plan is to complete a scoping study within 12 months, and in
parallel a plan for a Pre-feasibility Study and initiate
environmental permitting.
While the Company waits for a decision on the Exploitation
Concession, exploration work can continue under valid work plans,
with drilling at Kallak South later this year. Work is continuing
on firmly establishing the resource upside and the potential for a
much longer life mining operation, beyond the 14 years included in
the Kallak North application, which can support a sustainable
mining operation over decades, and secure supply of high-quality
iron ore to the growing fossil-free steelmaking industry.
In addition, the Company is continuing to work with consultants
on assessing new processing innovations, which will remove the
necessity for flotation and enable the Kallak design to move away
from a wet tailings storage towards dry-stacking, thereby reducing
the environmental footprint of a future operation.
Finally, the Company has embarked on advancing social studies,
specifically aimed at advancing discussions on formal agreements
with key stakeholders including the Jokkmokk municipality and the
Sami reindeer herders. The Company considers this work as critical
to maximising the benefits that Kallak will generate for all
stakeholders. These specific studies and work programmes, are
beneficial to optimising the environmental and social aspects of
the Kallak project, reducing its impacts and maximising its
benefits.
REMUNERATION REPORT
The Directors have chosen to voluntarily present an unaudited
remuneration report although is not required by the Companies Act
2006. Details of the Remuneration Committee's composition and
responsibilities are set out in the Corporate Governance Report and
its terms of reference can be found on the Group's website:
beowulfmining.com
Executive Directors' terms of engagement
Mr Budge is the sole Executive Director and Chief Executive
Officer. His annual salary is GBP150,000. Mr Budge has a notice
period of 12 months.
Non-Executive Directors' terms of engagement
The Non-Executive Directors have specific terms of engagement
under a letter of appointment. Their remuneration is determined by
the Board. In the event that a Non-Executive Director undertakes
additional assignments or work for the Company, this is covered
under a separate consultancy agreement.
Mr Davies annual fee is GBP31,000 per annum. Mr Davies has a
consultancy agreement with the Company for the provision of
exploration advice over and above his Non-Executive duties. Mr
Davies has a one month notice period under his letter of
appointment.
Mr Färm was appointed as Non-Executive Chairman on 30 October
2017. Under Mr Färm's letter of appointment, he was paid an
equivalent fee in Swedish Krona of GBP33,975 per annum. Mr Färm had
a one month notice period under his letter of appointment. Mr Färm
resigned on 10 November 2020.
Mr Littorin was appointed as Non-Executive Director on 10
November 2020. Under Mr Littorin's letter of appointment, he is
paid a fee in Swedish Krona of 450,000 per annum. Mr Littorin has a
notice period of one month under his letter of appointment.
Indemnity Agreements
Pursuant to the Companies Act 2006 and the Company's articles of
association, the Board may exercise the powers of the Company to
indemnify its Directors against certain liabilities, and to provide
its Directors with funds to meet expenditure incurred, or to be
incurred, in defending certain legal proceedings or in connection
with certain applications to the court. In exercise of that power,
and by resolution of the Board on 26 July 2016, the Company has
agreed to enter into this Deed of Indemnity with each Director.
Aggregate Directors' Remuneration
The remuneration paid to the Directors in accordance with their
agreements, during the years ended 31 December 2020 and 31 December
2019, was as follows:
Name Position Salary Benefits(2) Pension(3) 2020 2019
& Fees(1) Total Total
GBP GBP GBP GBP GBP
----------------- ---------- ----------- ---------- ------- -------
Chief Executive
Mr K R Budge Officer 150,000 874 13,000 163,874 215,434
----------------- ---------- ----------- ---------- ------- -------
Non-Executive
Mr C Davies Director 31,000 - - 31,000 76,954
----------------- ---------- ----------- ---------- ------- -------
Non-Executive
Mr G Färm Chairman 25,193 - - 25,193 49,956
----------------- ---------- ----------- ---------- ------- -------
Mr Sven Non-Executive
Littorin Director 6,654 - - 6,654 -
----------------- ---------- ----------- ---------- ------- -------
Total 212,847 874 13,000 226,721 341,975
---------- ----------- ---------- ------- -------
Notes:
(1) Does not include expenses reimbursed to the Directors.
(2) Personal life insurance policy
(3) Employer contributions to personal pension.
Each Director is also paid all reasonable expenses incurred
wholly, necessarily, and exclusively in the proper performance of
his duties.
The beneficial and other interests of the Directors holding
office on 31 December 2020 in the issued share capital of the
Company were as follows:
ORDINARY SHARES 31 December 31 December
2020 2019
Mr K R Budge 3,322,585 2,416,426
------------ ------------
Chris Davies 88,800 -
------------ ------------
As at 31 December 2020, all options have vested.
ORDINARY SHARES UNDER NUMBER EXERCISE EXPIRY DATE
OPTION PRICE
Mr K R Budge 9,000,000 1.66 pence 17 July 2021
---------- ----------- -------------
Mr K R Budge 3,500,000 7.35 pence 14 January
2024
---------- ----------- -------------
Mr C Davies 2,500,000 12 pence 26 January
2022
---------- ----------- -------------
Mr C Davies 2,500,000 7.35 pence 14 January
2024
---------- ----------- -------------
As at 31 December 2019, all options have vested.
ORDINARY SHARES UNDER NUMBER EXERCISE EXPIRY DATE
OPTION PRICE
Mr K R Budge 9,000,000 1.66 pence 17 July 2020
---------- ----------- -------------
Mr K R Budge 3,500,000 7.35 pence 14 January
2024
---------- ----------- -------------
Mr C Davies 2,500,000 12 pence 26 January
2022
---------- ----------- -------------
Mr C Davies 2,500,000 7.35 pence 14 January
2024
---------- ----------- -------------
ON BEHALF OF THE REMUNERATION COMMITTEE
Sven Otto Littorin
Non-Executive Chairman
14 May 2021
CONSOLIDATED INCOME STATEMENT
FOR THE YEARED 31 DECEMBER 2020
2020 2019
Note GBP GBP
CONTINUING OPERATIONS
Administrative expenses (1,005,547) (904,666)
Impairment of exploration costs (98,799) (10,720)
Share based payment expense - (119,720)
Gain on step acquisition - 563,431
OPERATING LOSS (1,104,346) (471,675)
Finance costs 2 (203,576) (410)
Finance income 2 594 6,298
Grant income 12,637 37,080
LOSS BEFORE TAX (1,294,691) (428,707)
Tax expense - -
LOSS FOR THE YEAR (1,294,691) (428,707)
============ ==========
Loss attributable to:
Owners of the parent (1,128,512) (267,000)
Non-controlling interests 7 (166,179) (161,707)
(1,294,691) (428,707)
============ ==========
Loss per share attributable to the
ordinary equity holder of the parent:
Basic and diluted (pence) 3 (0.19) (0.04)
------------ ----------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2020
2020 2019
Note GBP GBP
LOSS FOR THE YEAR (1,294,691) (428,707)
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently
to profit or loss:
Exchange losses arising on translation
of foreign operations 854,020 (794,299)
854,020 (794,299)
TOTAL COMPREHENSIVE LOSS (440,671) (1,223,006)
============ ============
Total comprehensive loss attributable
to:
Owners of the parent (294,716) (1,037,811)
Non-controlling interests 7 (145,955) (185,195)
(440,671) (1,223,006)
============ ============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
Note 2020 2019
GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 4 11,371,916 10,011,494
Property, plant and equipment 145,094 86,998
Loans and other financial assets 5,468 5,212
Right-of-use asset 1,937 7,324
11,524,415 10,111,028
------------- -------------
CURRENT ASSETS
Trade and other receivables 5 1,566,848 167,261
Cash and cash equivalents 6 4,329,414 1,124,062
5,896,262 1,291,323
------------- -------------
TOTAL ASSETS 17,420,677 11,402,351
============= =============
EQUITY
SHAREHOLDERS' EQUITY
Share capital 8 8,281,751 6,022,446
Share premium 8 24,684,737 20,824,009
Capital contribution reserve 46,451 46,451
Share based payment reserve 732,185 732,185
Merger reserve 137,700 137,700
Translation reserve (457,272) (1,291,068)
Accumulated losses (17,083,185) (15,781,161)
16,342,367 10,690,562
Non-controlling interests 7 394,113 326,555
TOTAL EQUITY 16,736,480 11,017,117
------------- -------------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 9 538,772 242,885
Grant Income 143,399 134,877
Lease liability 2,026 7,472
TOTAL LIABILITIES 684,197 385,234
------------- -------------
TOTAL EQUITY AND LIABILITIES 17,420,677 11,402,351
============= =============
The financial statements were approved and authorised for issue
by the Board of Directors on 14 May 2021 and were signed on its
behalf by:
Mr K Budge - Director
Company Number 02330496
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2020
Share
Capital based Non -
Share Share Merger contribution payments Translation Accumulated controlling
capital premium reserve reserve reserve reserve losses Totals interest Totals
Note GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2019 5,663,072 19,266,271 137,700 46,451 612,465 (520,257) (15,311,933) 9,893,769 (160,587) 9,733,182
--------- ----------- ------- ------------ --------- ----------- ------------ ----------- ----------- -----------
Loss for the
year - - - - - - (267,000) (267,000) (161,707) (428,707)
Foreign
exchange
translation - - - - - (770,811) - (770,811) (23,488) (794,299)
Total
comprehensive
income - - - - - (770,811) (267,000) (1,037,811) (185,195) (1,223,006)
--------- ----------- ------- ------------ --------- ----------- ------------ ----------- ----------- -----------
Transactions
with
owners
Issue of share
capital 357,707 1,642,293 - - - - - 2,000,000 - 2,000,000
Cost of issue - (93,305) - - - - - (93,305) - (93,305)
Share based
payment
expense 1,667 8,750 - - 119,720 - - 130,137 - 130,137
Issues of
shares - - - - - - (202,228) (202,228) 672,337 470,109
At 31 December
2019 6,022,446 20,824,009 137,700 46,451 732,185 (1,291,068) (15,781,161) 10,690,562 326,555 11,017,117
========= =========== ======= ============ ========= =========== ============ =========== =========== ===========
Loss for the
year - - - - - - (1,128,512) (1,128,512) (166,179) (1,294,691)
Foreign
exchange
translation - - - - - 833,796 - 833,796 20,224 854,020
Total
comprehensive
income - - - - - 833,796 (1,128,512) (294,716) (145,955) (440,671)
--------- ----------- ------- ------------ --------- ----------- ------------ ----------- ----------- -----------
Transactions
with
owners
Issue of share
capital 8 2,259,305 5,165,060 - - - - - 7,424,365 - 7,424,365
Cost of issue 8 - (1,304,332) - - - - - (1,304,332) - (1,304,332)
Issue of
shares - - - - - - (173,512) (173,512) 213,513 40,001
At 31 December
2020 8,281,751 24,684,737 137,700 46,451 732,185 (457,272) (17,083,185) 16,342,367 394,113 16,736,480
========= =========== ======= ============ ========= =========== ============ =========== =========== ===========
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2020
2020 2019
Note GBP GBP
Cash flows from operating activities
Loss before income tax (1,294,691) (428,707)
Depreciation charges 35,608 20,971
Share based payment expense - 119,720
Impairment of exploration costs 98,799 10,720
Finance income 2 (594) (6,298)
Finance cost 2 203,576 410
Grant income (12,637) (37,080)
Shares in Lieu 2,806 10,417
Gain on step acquisition - (563,431)
Amortisation of right -of -use asset 5,777 4,615
Unrealised foreign exchange (gains)
/ losses (12,590) 2,121
(973,946) (866,542)
(Increase) in trade and other receivables (2,203) (106,009)
Increase in trade and other payables 97,623 14,930
Net cash used in operating activities (878,526) (957,621)
------------ ------------
Cash flows from investing activities
Purchase of intangible assets 4 (622,501) (1,304,896)
Purchase of property, plant and equipment (89,436) (77,615)
Sale of investments - 7
Acquisition of subsidiary / associate - (500,000)
Cash acquired with subsidiary - 530,031
Grant receipt 25,796 -
Interest received 594 6,298
Net cash used in investing activities (685,547) (1,346,175)
------------ ------------
Cash flows from financing activities
Proceeds from issue of shares 8 3,827,717 1,906,695
Lease principal (5,840) (4,467)
Lease interest paid (255) (410)
Proceeds from borrowings 11 932,309 -
Interest paid on loan and borrowings 11 (93,935) -
Investment by minority interest 40,000 -
Net cash from financing activities 4,699,996 1,901,818
------------ ------------
Increase / (Decrease) in cash and
cash equivalents 3,135,923 (401,978)
Cash and cash equivalents at beginning
of year 1,124,062 1,533,232
Effect of foreign exchange rate changes 69,429 (7,192)
Cash and cash equivalents at end
of year 4,329,414 1,124,062
------------ ------------
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 2020, the Group had a cash balance of GBP4.33
million and the Company had a cash balance of GBP4.24 million.
The Company announced, on 13 August 2020, that it had secured
bridge loan financing in Sweden of SEK 12 million (approximately
GBP1.0 million) from Nordic investors. Since 2014, this has been
the only divergence from equity capital markets fundraising. The
bridging loan demonstrated the availability of alternative
financing to the Company and good support from a group of Nordic
investors, who went on to underwrite the SDR offer and buy shares
via a Private Placement/Directed Issue in the Capital Raising.
On 21 December 2020, the Company closed a fully subscribed
Capital Raising of approximately GBP7.4 million before expenses
(approx. SEK 83 million).
Management have prepared cash flow forecasts confident that they
are taking all necessary steps to ensure that the Group has the
required cash to pursue it strategic objectives, an assertion
supported by the significant equity finance raised prior to year
end. They have therefore concluded that it is appropriate to
prepare the financial statements on a going concern basis.
Management implemented logistical and organisational changes to
underpin the Group's resilience to the impact felt by the COVID-19
pandemic, with the key focus being protecting all personnel,
minimising the impact on critical work streams and ensuring
business continuity. The effect on the economy may impact the Group
in varying ways, which could lead to a direct bearing on the
Group's ability to generate future cash flows for working capital
purposes. The inability to gauge the length of such disruption
further adds to this uncertainty. For these reasons, the generation
of sufficient operating cash flows remain a risk. Management is
closely monitoring commercial and technical aspects of the Group's
operations to mitigate risk and is confident that the Group has
access to sufficient working capital to continue operations for the
foreseeable future.
Basis of preparation
The consolidated financial statements have been prepared in
accordance with applicable International Accounting Standards as
applied in accordance with the provisions of the Companies Act 2006
("IAS") and with those parts of the UK Companies Act 2006
applicable to companies reporting under IAS. The policies have been
consistently applied to both the parent Company and Group. 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.
Merger relief under s612 of the Companies Act 2006 removes the
requirement to credit the share premium account and where the
conditions are met, the relief must be applied. However, it allows
the investment to be accounted for at the nominal value of the
shares issued or the fair value of the consideration. Where the
investment is to be recorded at fair value, then the credit will be
to the merger relief reserve.
The conditions to qualify for merger relief are:
-- the consideration for shares in another company includes issued shares;
-- on completion of the transaction, the company issuing the
shares will have secured at least a 90% equity holding in the other
company.
Merger relief was required to be applied in acquisition of
Fennoscandian Resources, in which the Company obtained 100% of the
share capital of Fennoscandian for shares issued by the
Company.
Prior year restatement
The Company has amended certain prior year comparatives to
correctly present amounts in the Company financial statements for
the year ended 31 December 2020. The Company determined that a
correction of an error was required related to financing of
subsidiary amounts totalling GBP465,000 presented as cash outflows
from financing activities, specifically to present these amounts as
cash flows from investing activities in the Company statement of
cash flows. The cash outflows related to additional investments
made in subsidiaries which, in accordance with IAS 7 must be
classified as investing activities in the company cash flow
statement and not financing as would be the case in the group cash
flow statement. As this is a material error, the company is
required to correct it retrospectively. This amendment had no other
impact on the consolidated and Company financial statements for the
year ended 31 December 2020.
New standards, amendments and interpretations
There are several standards, amendments to standards, and
interpretations which have been issued by the IASB that are
effective in future accounting periods that the group has decided
not to adopt early. The most significant of these are as follows,
which are all effective for the period beginning 1 January
2020:
-- IAS 1 Presentation of Financial Statements and IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors
(Amendment - Definition of Material)
-- IFRS 3 Business Combinations (Amendment - Definition of Business)
-- Revised Conceptual Framework for Financial Reporting
-- Interest Rate Benchmark Reform (IBOR) reform Phase 1
(Amendments to IFRS 9, IAS 39 and IFRS 7)
The Directors have assessed there to be no material impact of
these new accounting standards on the Group financial
statements.
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.
A principal source of risk and judgement is that the
Exploitation Concession (the "Concession") for Kallak North will
not be awarded. Management maintains that its application for the
Concession has satisfied the requirements of the Swedish Minerals
Act and Environmental Code. In October 2015, the Mining
Inspectorate recommended to the Swedish Government that the
Concession be awarded.
The Company's application for the Concession remained with the
Government through 2020, and as such, Swedish authorities other
than the Government were not actively engaged in the permitting
process.
The Constitutional Committee ("KU"), which has been reviewing
the Swedish Government's handling of the Company's application for
an Exploitation Concession for Kallak North met 26 November 2020
and disclosed in a statement that no viable administrative measures
were implemented by the Government for almost three years,
resulting in an unacceptable delay.
A month prior to the KU's statement, the Government consulted
with United Nations Educational, Scientific and Cultural
Organization UNESCO on the Company's application . While the KU's
statement will have no bearing on the final decision, the Company
believes that once comments are received back from UNESCO a
decision will be 'forthcoming', language used by the Minister in
September 2019. The Company has been in communication with UNESCO
regarding its review of Kallak.
Since the KU statement last November, political parties outside
of Government are taking a greater interest in the case and, with
the support of our advisers, we continue to inform and educate on
the facts about Kallak and dispel the perceptions that exist. It is
management's judgement that it is appropriate to remain optimistic
about the Government, the decision maker in the application
process, awarding a Concession, and therefore Kallak has not been
impaired.
Management's judgement is based on several factors: Kallak is
ideally situated as a secure and sustainable supply of high-quality
iron ore to the growing fossil-free steel making sector powered by
renewables in Sweden; it can produce a market leading concentrate
of 71.5 per cent iron content; if the Government were to say 'no'
they would have said 'no' before now; the Minister for Business,
Industry and Innovation, Mr. Ibrahim Baylan is under pressure to
take decisions from politicians in his own and other political
parties; Sweden's reputation as a mining investment destination is
being significantly damaged.
The Åtvidaberg licence is located in the Bergslagen area,
southern Sweden. It was renewed during 2019 and now expires on 30
May 2022. Due to COVID-19, the exploration permit is likely to be
awarded an additional year to the existing term. The Mining
Inspectorate is yet to complete updating its registers and will
directly inform each permit holder of the change that applies to
their respective permits. As such the extension year, which should
extend the term of these licence to 2023, has not been added to the
licence 'Valid To' date shown in the Annual Report.
Bergslagen is one of Europe's oldest mining districts and
yielded a substantial portion of Sweden's mineral wealth in the
1800-1900s, with several large mines and hundreds of smaller mines
producing copper, zinc, lead, gold, silver, and iron ore. Current
operating mines in the area include Boliden's Garpenberg and Lundin
Mining's Zinkgruvan. Most of southern 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. During the year, no fieldwork was undertaken, due to COVID-19
restrictions and as the Company's exploration focus moved to
Kosovo. However, the Company is now in discussions with potential
partners to continue with the next stage of work on the licence. At
the date of this report the Company will have two years remaining
on the term of the licence.
Another source of risk and judgement is that the renewal
applications for exploration licences at Mitrovica and Viti have
been accepted but are yet to receive final approval.
As original permits were awarded around the same time, all
renewals have become due around the same time. Vardar's renewal
applications have also coincided with a changeover in personnel on
the board of The Independent Commission for Mines and Minerals
("ICMM"), the permitting authority in Kosovo. The ratification of a
new board has been delayed because of parliamentary elections,
which took place in February 2021. It is hoped that the new board
will soon be confirmed.
Management considers that in each case licence conditions have
been met and applications or renewals have been accepted by
receiving authorities. Management have included this in the
principal risks and estimates due to material nature of these
licences.
The Board has considered the impairment indicators as outlined
in the Company's accounting policies and having done so is of the
opinion that no impairment provisions are required for Company's
main assets, Kallak, Aitolampi, Mitrovica, Viti and Åtvidaberg (see
note 4).
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 is the judgment exercised in assessing the
control of the Vardar Group and in respect of the Parent Company
the recoverability of the loans made to subsidiary
undertakings.
The Company was assessed to have control on the 1 April 2019 as
the Company was able to exercise power over Vardar through the
appointment of Kurt Budge as Investor Director. The investment
agreement conveyed substantive rights to the Investor Director and
through the combination of the increased shareholding and these
rights the Company was able to affect the overall returns of the
investee.
The Parent Company, in applying the ECL model under IFRS 9, must
make assumptions when implementing the forward-looking ECL model.
This model is required to be used to assess the intercompany loans
receivable from subsidiaries for impairment.
Estimations were made regarding the credit risk of the
counterparty and the underlying probability of default in each of
the credit loss scenarios. The scenarios identified by management
included Production, Divestment, Fire-sale and Failure. These
scenarios considered technical data, necessary licences to be
awarded, the Company's ability to raise finance, and ability to
sell the project. A reasonable change in the probability weightings
of 3% would result in further impairment of GBP573,813 (2019
:GBP552,193).
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
Basis of consolidation
(i) Subsidiaries and acquisitions
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(and 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.
(ii) Equity accounted investees
Associates
Associates are entities over which the Group has significant
influence but not control, generally accompanying a shareholding of
between 20% and 50% of the voting rights. Significant influence is
the power to participate in the financial and operating policy
decisions of the investee but not the ability to control or jointly
control those policies. Investments in Associates are accounted for
using the equity method of accounting.
Equity method of accounting - Associates
Under the equity method of accounting, interests in Associates
are initially recognised at cost. The Group's share of Associates
post acquisition profit / loss after tax and other comprehensive
income/ loss are presented as the 'Share of results of Equity
accounted investees' in the Group income statement and Group
Statement of other comprehensive income respectively. The
cumulative post-acquisition movements are adjusted against the
carrying amount of the investment less any impairment in value.
Where indicators of impairment arise, the carrying amount of the
Associate is tested for impairment by comparing its recoverable
amount against its carrying value. Unrealised gains arising from
transactions with Associates are eliminated to the extent of the
Group's interest in the entity. Unrealised losses are similarly
eliminated to the extent that they do not provide evidence of
impairment of a transferred asset. When the Group's share of losses
in an Associate equal or exceeds its interest in the Associate, the
Group does not recognise further losses unless the Group has
incurred obligations or made payments on behalf of the Associate.
When the Group ceases to have or significant influence, any
retained interest in the entity is re-measured to its fair value at
the date when or significant influence is lost with the change in
carrying amount recognised in the income statement. The Group also
reclassifies any movements previously recognised in other
comprehensive income to the income statement.
(iii) 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.
Business combinations
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 aggregate of the acquisition-date
fair value of the consideration transferred and the amount
recognised for the non-controlling interest (and where the business
combination is achieved in stages, the acquisition-date fair value
of the acquirer's previously held equity interest in the acquiree)
is lower than the fair value of the assets, liabilities and
contingent liabilities and the fair value of any pre-existing
interest held in the business acquired, the difference is
recognised in profit and loss.
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. Each asset is evaluated annually at 31
December, to determine whether there are any indications that
impairment exists.
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 include:
-- 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.
Once the decision for investment is taken, the assets will be
assessed for impairment and to the extent that these are not
impaired, will be classified as development assets. At the point
that production commences these assets will be depreciated.
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.
Office equipment - 25 per cent on reducing balance
Computer equipment - 25 per cent on reducing balance
Motor Vehicles - 20 per cent on reducing balance
Machinery and - 20 to 25 per cent on reducing balance
equipment
The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at each balance sheet date.
Leased assets
When entering into a contract the Group assesses whether or not
a lease exists. A lease exists if a contract conveys a right to
control the use of an identified asset under a period of time in
exchange for consideration. Leases of low value items and
short-term leases (leases of less than 12 months at the
commencement date) are charged to the profit or loss on a
straight-line basis over the lease term in administrative
expenses.
The Group recognises right-of-use assets at cost and lease
liabilities at the lease commencement date based on the present
value of future lease payments. The right-of-use assets are
amortised on a straight-line basis over the length of the lease
term. The lease liabilities are recognised at amortised cost using
the effective interest rate method. Discount rates used reflect the
incremental borrowing rate specific to the lease.
Investments in subsidiaries
Investments in subsidiary undertakings are stated at cost less
provision for any impairment in value.
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.
Financial assets
The Group classifies all of its financial assets at amortised
cost. Management determines the classification of its financial
assets at initial recognition.
Amortised cost
The Group's financial assets held at amortised cost comprise
trade and other receivables and cash and cash equivalents in the
consolidated statement of financial position.
These assets are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. They
arise principally through the provision of goods and services to
customers (e.g. trade receivables), but also incorporate other
types of financial assets where the objective is to hold their
assets in order to collect contractual cash flows and the
contractual cash flows are solely payments of the principal and
interest. They are initially recognised at fair value plus
transaction costs that are directly attributable to their
acquisition or issue and are subsequently carried at amortised cost
using the effective interest rate method, less provision for
impairment.
Impairment provisions for trade receivables are recognised based
on the simplified approach within IFRS 9 using the lifetime ECLs.
During this process the probability of the non-payment of the trade
receivables is assessed. This probability is then multiplied by the
amount of the expected loss arising from default to determine the
lifetime ECL for the trade receivables. For trade receivables,
which are reported net; such provisions are recorded in a separate
provision account with the loss being recognised within
administrative expenses in the consolidated statement of
comprehensive income. On confirmation that the trade receivable
will not be collectable, the gross carrying value of the asset is
written off against the associated provision.
Expected credit loss provisions for other receivables are
recognised based a forward-looking expected credit loss model. The
methodology used to determine the amount of the provision is based
on whether there has been a significant increase in credit risk
since initial recognition of the financial asset. For those where
the credit risk has not increased significantly since initial
recognition of the financial asset, twelve month expected credit
losses along with gross interest income are recognised. For those
for which credit risk has increased significantly, lifetime
expected credit losses along with the gross interest income are
recognised. For those that are determined to be credit impaired,
lifetime expected credit losses along with interest income on a net
basis are recognised.
Financial liabilities
The Group's financial liabilities include trade and other
payables and loans and borrowings. All financial liabilities are
recognised initially at fair value, net of transaction costs
incurred, and are subsequently stated at amortised cost, using the
effective interest method.
Loans and borrowings with settlement terms that that fail the
fixed for fixed criterion will be treated as a containing an
embedded derivative liability, where this is recognised the loan
value will be allocated between the derivative value and the loan
residual which will be carried amortised cost. Loans and borrowings
are derecognised when the obligation is extinguished.
Unless otherwise indicated, the carrying values of the Group's
financial liabilities measured at amortised cost represents a
reasonable approximation of their fair values.
Fair value
All assets and liabilities for which fair value is measured or
disclosed in the consolidated financial statements are
categorised within the fair value hierarchy. The fair value
hierarchy prioritises the inputs to valuation techniques used to
measure fair value. The Group uses the following hierarchy for
determining and disclosing the fair value of financial instruments
and other assets and liabilities for which the fair value was
used:
- level 1: quoted prices in active markets for identical assets or liabilities;
- level 2: inputs other than quoted prices included in level 1
that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices); and
- level 3: inputs for the asset or liability that are not based
on observable market data (unobservable inputs).
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.
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
substantively 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.
Government grant
Government grants received on capital expenditure are generally
deducted in arriving at the carrying amount of the asset purchased.
Grants for revenue expenditure are recorded gross in the Group
income statement. Where retention of a government grant is
dependent on the Group satisfying certain criteria, it is initially
recognised as deferred income. When the criteria for retention have
been satisfied, the deferred income balance is released to the
consolidated statement of comprehensive income or netted against
the asset purchased.
2. FINANCE INCOME AND COSTS
2020 2019
GBP GBP
Finance income:
Deposit account interest 594 6,298
-------- ------
594 6,298
======== ======
Finance costs:
Interest on lease liabilities 255 410
Interest on loans and borrowings 203,321 -
-------- ------
203,576 410
======== ======
3. BASIC AND DILUTED LOSS PER SHARE
The calculation of basic and diluted loss per share at 31
December 2020 was based on the loss attributable to ordinary
shareholders of GBP1,128,512 (2019: GBP267,000 ) and a weighted
average number of Ordinary Shares outstanding during the year ended
31 December 2020 of 607,815,562 (2019: 585,102,740) calculated as
follows:
2020 2019
GBP GBP
Loss attributable to ordinary shareholders (1,128,512) (267,000)
============ ==========
Weighted average number of ordinary shares
2020 2019
Number Number
Number of shares in issue at the beginning
of the year 585,102,740 554,716,045
Effect of shares issued during year 20,712,822 30,386,695
Weighted average number of ordinary shares
in issue for the year 607,815,562 585,102,740
============ ============
The diluted earnings per share is identical to the basic loss
per share as the exercise of warrants and options would be
anti-dilutive.
4. INTANGIBLE ASSETS - Group
Exploration
Costs
GBP
COST
At 1 January 2019 8,285,547
Additions for the year 1,304,896
Additions arising from the step-up in interest in
Vardar 1,203,685
Foreign exchange movements (771,914)
Impairment (10,720)
------------
At 31 December 2019 10,011,494
------------
At 1 January 2020 10,011,494
Additions for the year 612,062
Foreign exchange movements 847,159
Impairment (98,799)
------------
At 31 December 2020 11,371,916
------------
NET BOOK VALUE
------------
At 31 December 2020 11,371,916
============
At 31 December 2019 10,011,494
============
The net book value of exploration costs is comprised of
expenditure on the following projects:
2020 2019
GBP GBP
Kallak 7,533,388 6,675,124
Åtvidaberg 393,303 345,978
Ågåsjiegge - 15,568
Pitkäjärvi 1,333,114 1,058,078
Joutsijärvi - 19,095
Karhunmaki 41,017 24,078
Rääpysjärvi 47,053 39,905
Mervivaara 36,965 17,846
Polvela - 31,316
Tammijärvi - 24,278
Mitrovica 1,387,030 1,243,194
Viti 600,046 517,034
11,371,916 10,011,494
=========== ===========
Total Group exploration costs of GBP11,371,916 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 GBP68,508
was recorded against the projects for services provided by the
Directors during the year (2019: GBP91,231).
The Company's application for the Concession remained with the
Government through 2020, and as such, Swedish authorities other
than the Government were not actively engaged in the permitting
process.
The Constitutional Committee ("KU"), which has been reviewing
the Swedish Government's handling of the Company's application for
an Exploitation Concession for Kallak North met 26 November 2020
and disclosed in a statement that no viable administrative measures
were implemented by the Government for almost three years,
resulting in an unacceptable delay.
A month prior to the KU's statement, the Government consulted
with United Nations Educational, Scientific and Cultural
Organization UNESCO on the Company's application . While the KU's
statement will have no bearing on the final decision, the Company
believes that once comments are received back from UNESCO a
decision will be 'forthcoming', language used by the Minister in
September 2019. The Company has been in communication with UNESCO
regarding its review of Kallak.
Since the KU statement last November, political parties outside
of Government are taking a greater interest in the case and, with
the support of our advisers, we continue to inform and educate on
the facts about Kallak and dispel the perceptions that exist. It is
management's judgement that it is appropriate to remain optimistic
about the Government, the decision maker in the application
process, awarding a Concession, and therefore Kallak has not been
impaired.
Management's judgement is based on several factors: Kallak is
ideally situated as a secure and sustainable supply of high-quality
iron ore to the growing fossil-free steel making sector powered by
renewables in Sweden; it can produce a market leading concentrate
of 71.5 per cent iron content; if the Government were to say 'no'
they would have said 'no' before now; the Minister for Business,
Industry and Innovation, Mr. Ibrahim Baylan is under pressure to
take decisions from politicians in his own and other political
parties; Sweden's reputation as a mining investment destination is
being significantly damaged.
The Åtvidaberg licence is located in the Bergslagen area,
southern Sweden. It was renewed during 2019 and now expires on 30
May 2022. Due to COVID-19, the exploration permit is likely to be
awarded an additional year to the existing term. The Mining
Inspectorate is yet to complete updating its registers and will
directly inform each permit holder of the change that applies to
their respective permits. As such the extension year, which should
extend the term of these licence to 2023, has not been added to the
licence 'Valid To' date shown in the Annual Report.
Bergslagen is one of Europe's oldest mining districts and
yielded a substantial portion of Sweden's mineral wealth in the
1800-1900s, with several large mines and hundreds of smaller mines
producing copper, zinc, lead, gold, silver, and iron ore. Current
operating mines in the area include Boliden's Garpenberg and Lundin
Mining's Zinkgruvan. Most of southern 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. During the year, no fieldwork was undertaken, due to COVID-19
restrictions and as the Company's exploration focus moved to
Kosovo. However, the Company is now in discussions with potential
partners to continue with the next stage of work on the licence. At
the date of this report the Company will have two years remaining
on the term of the licence.
Another source of risk and judgement is that the renewal
applications for exploration licences at Mitrovica and Viti have
been accepted but are yet to receive final approval.
As original permits were awarded around the same time, all
renewals have become due around the same time. Vardar's renewal
applications have also coincided with a changeover in personnel on
the board of The Independent Commission for Mines and Minerals
("ICMM"), the permitting authority in Kosovo. The ratification of a
new board has been delayed because of parliamentary elections,
which took place in February 2021. It is hoped that the new board
will soon be confirmed.
Management considers that in each case licence conditions have
been met and applications or renewals have been accepted by
receiving authorities. Management have included this in the
principal risks and estimates due to material nature of these
licences.
The Board has considered the impairment indicators as outlined
in the Company's accounting policies and having done so is of the
opinion that no impairment provisions are required for Company's
main assets, Kallak, Aitolampi, Mitrovica, Viti and Åtvidaberg
In the year, an impairment provision of GBP98,799 was recognised
for project costs capitalised for projects at Ågåsjiegge,
Joutsijärvi, Polvela and Tammijärvi (31 December 2019: Sala
GBP10,270) on the basis that no further exploration would be
carried out on those projects. In respect of the other license
areas, no impairment indicators have been identified. The
impairment is charged as an expense and included within the
consolidated income statement.
5. TRADE AND OTHER RECEIVABLES
2020 2019
GBP GBP
Other receivables 1,428,491 94,653
VAT 123,638 60,819
Prepayments and accrued
income 14,719 11,789
---------- --------
1,566,848 167,261
========== ========
Included in other receivables is a deposit of GBP17,854 held by
Finnish regulatory authorities (2019: GBP16,927).
Included in other receivables of both the Group is a balance of
GBP1,392,081 funds due to be received for shares issued (2019:
GBPnil). This amount should be considered as a reconciling item to
the working capital movements included the operating line of the
statement of cashflows, as this amount has been offset against the
gross cash proceeds received from the issue of shares.
6. CASH AND CASH EQUIVALENTS
2020 2019
GBP GBP
Bank accounts 4,329,414 1,124,062
4,329,414 1,124,062
========== ==========
7. NON-CONTROLLING INTERESTS
The Group has material non-controlling interests arising from
its subsidiaries Wayland Copper Limited and Vardar Minerals
Limited. These non-controlling interests can be summarised as
follows;
2020 2019
GBP GBP
Balance at 1 January 326,555 (160,587)
Total comprehensive loss allocated to NCI (145,955) (185,195)
Effect of step acquisitions 213,513 672,337
Total 394,113 326,555
========== ==========
2020 2019
GBP GBP
Wayland Copper Limited (161,677) (161,291)
Vardar Minerals Limited 555,790 487,846
---------- ----------
Total 394,113 326,555
========== ==========
Wayland Copper Limited is a 65.25 per cent owned subsidiary of
the Company that has material non-controlling interests
("NCI").
Summarised financial information reflecting 100 per cent of the
Wayland's relevant figures is set out below:
2020 2019
GBP GBP
Administrative expenses (1,471) (1,537)
Loss after tax (1,471) (1,537)
Loss allocated to NCI (512) (534)
Other comprehensive income allocated to
NCI 126 (169)
Total comprehensive loss allocated to NCI (386) (703)
Current assets 4,391 5,385
Current liabilities (469,644) (469,531)
Net liabilities (465,253) (464,146)
Non-Controlling Interest (161,677) (161,291)
---------- ----------
Vardar Minerals Limited, a 46.1% per cent owned subsidiary of
the Company that has material non-controlling interests
("NCI").
Summarised financial information reflecting 100 per cent of the
Vardar Minerals relevant figures is set out below:
2020 2019
GBP GBP
Administrative expenses 284,281 (248,836)
Loss after tax 284,281 (248,836)
Loss allocated to NCI (165,668) (161,173)
Other comprehensive income allocated to
NCI 20,099 (23,319)
Total comprehensive loss allocated to NCI (145,569) (184,492)
Current assets 101,029 118,289
Non-Current assets 1,047,809 746,097
Current liabilities (134,829) (30,462)
Net Assets 1,014,009 833,924
Non-Controlling Interest 555,790 487,846
---------- ----------
8. SHARE CAPITAL
2020 2020 2019 2019
Number GBP Number GBP
Allotted, called up
and fully paid
At 1 January 602,244,672 6,022,446 566,307,254 5,663,072
Issued for cash 225,841,752 2,258,417 35,770,751 357,707
Issued for fees 88,800 888 166,667 1,667
At 31 December 828,175,224 8,281,751 602,244,672 6,022,446
============ ========== ============ ==========
All issues are for cash unless otherwise stated.
Share Share Premium
Capital Total
Number GBP GBP GBP
At 1 January 2019 566,307,254 5,663,072 19,266,271 24,929,343
1 April - Issue of new
shares(1) 13,636,364 136,363 575,917 712,281
16 April - Issue of
new shares(2) 8,695,652 86,957 387,817 474,774
13 October - Issue of
fee shares 166,667 1,667 8,750 10,417
24 October - Issue of
new shares(3) 9,090,909 90,909 383,911 474,820
13 November - Issue
of new shares(4) 4,347,826 43,478 201,342 244,820
At 31 December 2019 602,244,672 6,022,446 20,824,009 26,846,455
============ ========== ================ ===========
(1) Includes issue costs of GBP37,719
(2) Includes issue costs of GBP25,226
3Includes issue costs of GBP25,180
(4) Includes issue costs of GBP5,180
Share Capital Share Premium Total
Number GBP GBP GBP
At 1 January 2019 602,244,672 6,022,446 20,824,009 26,846,455
21 December - Issue
of new shares(1) 225,841,752 2,258,417 3,858,810 6,117,227
21 December - Issue
of fee shares 88,800 888 1,918 2,806
At 31 December 2019 828,175,224 8,281,751 24,684,737 32,966,488
============ ============== ============== =============
(1) Includes issue costs of GBP1,304,322
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 2020
On 21 December 2020, the Company announced the completion of a
rights issue in Sweden, open offer and subscription to issue a
combined 197,599,345 ordinary shares of GBP0.01 to raise
GBP6,500,000 before expenses. As part of this offering, director
fees outstanding to Chris Davies of GBP2,806 (2019:nil) were
settled in shares.
On 21 December 2020, the Company announced a fully subscribed
placing to 28,331,207 ordinary shares at GBP0.01 raising GBP900,000
before expenses.
Shares issued in 2019
On 1 April 2019, the Company announced a subscription for
13,636,364 new ordinary shares of GBP0.01 each to raise GBP750,000
before expenses.
On 16 April 2019, the Company announced a subscription for
8,695,652 new ordinary shares of GBP0.01 each to raise GBP500,000
before expenses.
The Company announced, on 13 October 2019, that as a part of
compensation for 500,000 options at 4p forgone Kurt Budge was to be
issued was issued 166,667 new ordinary shares with a commensurate
value of approximately GBP10,417 being the equivalent to the
economic value of the lapsed options.
The Company announced, on 24 October 2019, a subscription for
9,090,909 new ordinary shares of GBP0.01 each to raise
GBP500,000.
The Company announced, on 8 November 2019, a subscription for
4,347,826 new ordinary shares of GBP0.01 each to raise
GBP250,000.
9. TRADE AND OTHER PAYABLES
2020 2019
GBP GBP
Current:
Trade payables 406,503 151,332
Social security and
other taxes 13,197 11,623
Other payables 15,149 10,619
Accruals 103,923 69,311
538,772 242,885
======== ========
Included in other trade and other payables of both the Group is
a balance of GBP190,984 due be to paid for issue costs relating to
share issues (2019: GBPnil). This amount should be considered as a
reconciling item to the working capital movements included the
operating line of the statement of cashflows, as this amount
decreases the cash issue costs displayed in the cashflow statement
rather than presenting as a movement in working capital.
10. BORROWINGS
2020 2019
GBP GBP
Opening balance - -
Funds advanced 932,309 -
Finance costs 203,321 -
Effect of FX 20,802 -
Funds repaid (1,156,432) -
------------ -----
- -
============ =====
On 1 3 August 2020, the Company secured a Bridging loan from
Nordic investors of SEK 12 million (approximately GBP1.0 million)
The Loan has a fixed interest rate of 1.5 percent per stated 30-day
period during the duration. Accrued interest is non-compounding.
The Loan had a commitment fee of 5 per cent and a Maturity Date of
15 January 2021.
Beowulf had the option to repay the Loan and accrued interest at
any time prior to the Maturity Date. If the Loan and accrued
interest was not repaid by 15 February 2021, at the latest, the
Creditors had the right to convert the Loan and accrued interest
into Swedish Depository Receipts ("SDR") at a price per SDR
calculated with a 10 per cent discount on the volume weighted
average price of the SDR during the preceding 5 trading days to the
conversion decision.
The Loan was accounted for using an amortised cost using an
effective rate of interest. The conversion feature contained within
the loan is considered an embedded derivative and was not assessed
to be significant given the available inputs. The Loan was fully
repaid on 17 December 20, following successful capital
raisings.
11. CHANGES IN LIABILITIES FROM FINANCING ACTIVITIES
Leases Borrowings Total
GBP GBP GBP
Opening balance 1 January
2020 7,472 - 7,472
Cash movements
Drawdown of borrowings 932,309 932,309
Interest paid (93,935) (93,935)
Repayment of loan principal (1,062,497) (1,062,497)
Lease payments (6,095) - (6,095)
Total 1,377 (224,123) (222,746)
======= =========== ===========
Non-cash movements
Finance cost 255 203,321 203,576
Effect of FX 394 20,802 21,196
Closing balance 31 December
2020 2,026 - 2,026
======= =========== ===========
Leases Total
GBP GBP
Opening balance 1 January - -
2019
Cash movements
Drawdown of borrowings
Interest paid
Repayment of loan principal
Lease payments (4,465) (4,465)
Total (4,465) (4,465)
======= =======
Non-cash movements
Recognition of right of use
lease liabilities 12,144 12,144
Effect of FX (207) (207)
Closing balance 31 December
2019 7,472 7,472
======= =======
In the consolidated and company cashflow statements, the cash
repayment of the bridging loan of GBP1,062,497 has been offset
against the gross proceeds from the issue of shares, this is due to
the proceeds from the issue of shares being received net of the
debt repayment.
12. RELATED PARTY DISCLOSURES
Transactions with subsidiaries
During the year, cash advances of GBP170,257 (2019: GBP286,045)
were made to Jokkmokk Iron Mines AB and incurred costs of GBP68,130
that were paid on behalf by the Company (2019: GBP131,948). The
advances are held on an interest free inter-group loan which has no
terms for repayment. At the year end the inter-Group loan amounted
to GBP7,407,215 (2019: GBP7,241,374).
Beowulf Sweden AB received cash advances of GBPnil (2019:
GBP72,290) and settled had net settled costs with the Company of
(GBP2,512) (2019: GBP5,057). The advances are held on an interest
free inter-Group loan which has no terms for repayment. At the year
end the inter-Group loan amounted to GBP358,947 (2019:
GBP361,772).
OY Fennoscandian AB received cash advances of GBP206,513 (2019:
GBP479,458) and incurred costs of GBP19,936 (2019: GBP31,296) that
were paid on behalf by the Company. The advances are held on an
interest free inter-Group loan which has no terms for repayment. At
the year end the inter-Group loan amounted to GBP1,572,369 (2019:
GBP1,383,518).
In accordance with its service agreement, Fennoscandian charges
Beowulf Mining plc for time incurred by its staff on exploration
projects held by other entities in the Group. In turn Beowulf
Mining plc recharges the other entities involved.
In addition, Beowulf Mining plc charges entities in the Group
for time and expenses spent by Directors on providing services. An
arm's length margin has been included at entity level, but this is
subsequently eliminated on consolidation.
The Company has made unsecured interest-free loans to its
subsidiaries. Although they are repayable on demand, they are
unlikely to be repaid until the projects becomes successful and the
subsidiaries start to generate revenues.
Transactions with other related parties
Key management personnel include all Directors and those who
have authority and responsibility for planning, directing and
controlling the activities of the entity, the aggregate
compensation paid to key management personnel of the Company is set
out below,
2020 2019
GBP GBP
Short-term employee benefits (including
employers' national insurance contributions) 435,353 489,727
Bonus 4,608 -
Post-retirement benefits 26,710 30,364
Share based payments - 105,359
Share settled expense - 10,417
Insurance 874 809
467,545 636,676
======== ========
Mr Blomqvist incurred a charge of GBPnil with respect of
remaining unvested options (2019: GBP22,976). Mr Blomqvist is
considered key management personnel in his role as the Group's
Exploration Manager.
Key management personnel commitments and shareholdings
On 6 November 2020, included in the Company's announcement
regarding a partially secured capital raising, certain of the
Directors and Rasmus Blomqvist agreed to subscribe for Open Offer
Shares and Additional Subscription Shares. The Company received
pre-subscription commitments totalling approximately GBP87,000
regarding the Open Offer and Additional Subscription from certain
members of the Directors and Rasmus Blomqvist, as below:
Name Number and type of New Ordinary Number of Ordinary Shares
Shares at the end of the period
Kurt Budge Open Offer Shares 906,159 3,322,585
Additional Subscription Shares
Christopher Davies 88,800 88,800
Rasmus Blomquist Open Offer Shares 1,743,750 6,393,750
13. EVENTS AFTER THE REPORTING DATE
On 8 February 2021, Beowulf invested GBP200,000 in Vardar
Minerals limited, increasing the Company's investment in Vardar
from 46.1% to 48.4%.
On 12 March 2021, Fennoscandian has recently signed a Memorandum
of Understanding ("MoU") with Epsilon Advance Materials Limited
("EAMPL"). The MoU enables Fennoscandian to build its downstream
capability, collaborating with a strong and innovative
technology/processing partner, and for EAMPL to firmly establish
itself in Finland, as a market-entry point for supplying pre-cursor
anode material into Europe. The MoU addresses the development of a
strategic processing hub for both natural flake and recycled
graphite to be located in Finland.
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END
FR USSBRASUVAAR
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