TIDMBEM
RNS Number : 8518B
Beowulf Mining PLC
15 June 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, as incorporated into UK law
by the European Union (Withdrawal) Act 2018. Upon the publication
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be in the public domain.
15 June 2021
Beowulf Mining plc
("Beowulf" or the "Company")
Kallak Iron Ore Project - Letter to Minister Baylan
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, announces the Company has sent a letter from
its CEO, Kurt Budge, to Sweden's Minister of Enterprise and
Innovation, Ibrahim Baylan, concerning the status of Beowulf's
Kallak application.
The letter is reproduced in full below.
Jokkmokk - 2021.06.14
Näringsminister Ibrahim Baylan
Näringsdepartementet
Stockholm
Näringsministern,
On 8 June 2021, Beowulf Mining was notified by the
Finansinspektionen, Sweden's financial supervisory authority, whose
role is to promote stability and efficiency in Sweden's financial
system as well as to ensure sustainability and an effective
consumer protection, of UNESCO's letter regarding our Kallak Iron
Ore Project ("Kallak") dated 2 June 2021.
Finansinspektionen wrote that UNESCO's letter had been in the
hands of members of the Swedish public (including elected Sami
officials) for several days, with associated posts on social
media.
At the time, Beowulf had not received a copy of UNESCO's letter,
but as the information was already in the public domain, with no
explanation of its significance the market reacted strongly, left
to draw its own conclusions. The Company's share price fell over 10
per cent last week.
During the last six years, there have been several occasions
where 'market sensitive' information has been made public before
Beowulf has been informed. Each time damage has been caused to the
Company's share price, individual's investments, including Swedish
shareholders who now own 72 per cent of the Company, and Sweden's
reputation as a country in which to do business.
It is the Company's experience that often public agencies do not
understand what constitutes 'market sensitive' information or
recognise the obligations of a public company to its shareholders
and the equity markets. Once again, the Company is left to deal
with the aftermath.
Since our application was returned to the Government in the
middle of 2017, there has been no transparent or predictable
process, and the UNESCO letter demonstrates an absence of control
or duty of care to Beowulf and its shareholders.
In your letter to the Company dated 30 September 2019, you
stated that a decision by the Government was 'forthcoming'.
In Norrbotten, we see downstream projects, HYBRIT and
H2GreenSteel, getting permitted in a couple of years, whereas there
is no similar consideration/treatment for unlocking secure and
sustainable upstream supply that can ensure the integrity of a
fossil-free supply chain. It makes no sense.
The Company has written to you many times about the positive
contribution that Kallak would make to Jokkmokk Municipality. On 21
May 2019, we met with the State Secretary in Stockholm, who closed
the meeting saying that the Government understood the importance of
Kallak to Jokkmokk. Despite these words and The January Agreement
nothing has been done to help Jokkmokk.
It is inaccurate to say that the Kallak case is complex because
of competing interests, as an excuse for delaying a decision.
National interests are a distraction. The evidence shows that
mining and reindeer herding coexist across Sweden, in the very few
places you actually find an operating mine, as there are only 12 in
the Country.
Beowulf has satisfied the procedural and legal requirements to
be granted the Concession and has the right to progress with its
investment, project development and environmental permitting. This
has been the case since Bergsstaten recommended to the Government
that the Concession be awarded over 5.5 years ago.
We could have been in production now. With benchmark iron ore
prices at over $200/tonne, Jokkmokk should have already been on the
road to realising its economic transformation. The opportunity cost
to stakeholders in Jokkmokk and Beowulf shareholders is
considerable.
During the last few months, you have said that a decision on
Kallak will be made once UNESCO comments are received. This was
also stated in a debate in parliament with Lars Hjälmered
(Interpellationsdebatt 2020/21:198 Tillståndsprövningen gällande
Laver och Kallak) where you said that "vi får deras synpunkter
[UNESCO's] och därefter kan gå till beslut. Då är det färdigberett,
och då är också min bedömning att det beslut som regeringen fattar
håller rättsligt."
When is the decision on the Concession for Kallak North to be
taken, as Beowulf has work to do?
Med vänliga hälsningar,
Kurt Budge
VD, Beowulf Mining plc
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 .
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END
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