TIDMBEM
RNS Number : 8718P
Beowulf Mining PLC
22 October 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
of this announcement, this inside information is now considered to
be in the public domain.
22 October 2021
Beowulf Mining plc
("Beowulf" or the "Company")
Kallak Update
Beowulf (AIM: BEM; Spotlight: BEO), the mineral exploration and
development company, provides an update on recent developments in
Sweden, the completion of a concept Mining Study for Kallak, and
the Company's application for an Exploitation Concession for Kallak
North.
CEO Visit to Sweden
The CEO visited Sweden between 3-9 October 2021 travelling to
Luleå, Boden, Jokkmokk, and Stockholm. Discussions with politicians
in Norrbotten and Stockholm indicate that permitting, sustainable
and secure supply chains, the transition to a Green Economy and the
need for more mines in Sweden are priorities for several political
parties right now, especially those parties contesting to be in
government after the next election in September 2022.
Mining Study and Transport Infrastructure Developments
With the support of Carci Mining Consultants Limited ("Carci"),
the Company has completed a concept Mining Study for Kallak North
which shows that the mine could produce approximately 2.7 million
tonnes ("Mt") per annum of concentrate based on the existing
resource for Kallak North only and modelled over an initial 15
years.
There exists the potential for a longer life mining operation,
when considering Kallak South and the Company's exploration ground
further south, which have both additional defined iron ore
mineralisation and an Exploration Target.
(See RNS Announcement on 25 May 2021 - Kallak Iron Ore Project -
Mineral Resource Estimate and Exploration Target Upgrade
https://polaris.brighterir.com/public/beowulf_mining_plc/news/rns/story/x8q5k9x
)
This production rate is one scenario and given the forecast
demand for high quality iron ore being created by projects such as
HYBRIT and more specifically H2 Green Steel, there could well be a
requirement for a higher production rate. The Company will be using
the results of the concept Mining Study as the basis for
discussions with The Swedish Transport Agency (Trafikverket), the
Inlandsbanan (the Inland Railway) and emerging fossil-free steel
producers in Norrbotten.
Dependent on customer locations, domestic and export, the
Inlandsbanan and the Malmbanan are the obvious rail routes to
market for Kallak, but in the case of Malmbanan there is clearly
competition for access.
Recent discussions in Sweden suggest that a rail connection
between Jokkmokk and Boden has been discussed, which in the
Company's view would be of clear benefit to a variety of users
including mining, forestry, hydrogen transport and others, as well
as future investors in projects such as Kallak and
H2GreenSteel.
More broadly, the Company understands that transport
infrastructure in the north of Sweden is in the spotlight, as one
enabler to securing future capital investments as part of the
transition to a Green Economy/European Green Deal. This renewed
impetus is good news and builds on previous EU funded studies
between 2011-2013, led by Sweden, the Bothnian Green Logistic
Corridor.
Application Process
On 20 October 2021, Minister Baylan gave his standard response
to a question raised by Mr Mattias Karlsson, Member of Parliament
for the Moderaterna Party. Minister Baylan is leaving office at the
end of the month, so the lack of a more detailed response and any
timeline for a decision is unsurprising. He stated that the
Government's review of the case is ongoing.
Constitutional Committee
In recent weeks, The Constitutional Committee ("KU"), which has
previously reviewed the Swedish Government's handling of the
Company's Kallak application and criticised the Government in late
2020, has initiated a new review of minerals permitting which
includes the Kallak case. The Ministry of Enterprise gave direct
responses to KU's questions which were evidently lacking in detail.
The Company is interested to see the conclusions of the KU's latest
review.
Kurt Budge, CEO, commented:
"This week, the outgoing Prime Minister Stefan Löfven visited H2
Green Steel in Boden and Luleå Hamn (the regional port),
demonstrating his support for two companies creating a fossil-free
industrial future, and playing a significant role in supplying
Europe.
"Stating the obvious, but you can't make steel without iron ore
and steel making in the future will rely on robust supply
chains.
"Despite Stefan Löfven's exit from the stage, there's lots
happening politically in Norrbotten and Stockholm and the Company
has renewed optimism, that with a new Prime Minister and Minister
of Enterprise due to take office in the coming weeks, a change in
leadership has to be a stimulus for decisions on permit
applications and Kallak.
"The Board will be watching closely to see if there are signs of
a decision being taken. If not, then we will seek alternative
recourse.
"Since the last Company announcement over a month ago, I have
spent a week in India visiting Epsilon Carbon, including its
production facilities in Karnataka State, and was able to discuss
our joint plans to develop an anode materials plant in Finland. I
also visited Finland last week for meetings regarding Grafintec's
business, and, as mentioned previously, I was in Sweden earlier in
the month.
"In Kosovo, we are still waiting for final approval of Vardar's
licence applications. The appointment by the Kosovan Government of
new members to the Independent Commission on Mines and Minerals
("ICMM") Board, the body that administers mineral licence
permitting in Kosovo, renews licences and issues new licences, is
still to be completed. The Company is now discussing plans with
Vardar for a Winter drilling programme to catch-up on some of the
lost time this year.
"It's a busy time for Beowulf, with many plans being worked on,
and I look forward to updating shareholders on developments in due
course."
Kurt Budge, vd, kommenterar:
"Under den här veckan besökte statsminister Stefan Löfven H2
Green Steel i Boden samt Luleå Hamn (den regionala hamnen) och
visade sitt stöd för två bolag som skapar en fossilfri industriell
framtid samt har en viktig del som europeiska leverantörer.
"Det kan låta självklart, men man kan inte tillverka stål utan
järnmalm, och ståltillverkning i framtiden kommer att förlita sig
på robusta leveranskedjor.
"Trots Stefan Löfvens avgång sker det mycket politiskt i
Norrbotten och Stockholm. Bolaget har en förnyad optimism om att en
ny statsminister och näringsminister som tillträder de kommande
veckorna, bidrar till en stimulans för beslut om
tillståndsansökningar och Kallak.
"Styrelsen kommer noga följa detta för att se om det finns
tecken på att beslut fattas. Om så inte sker, kommer vi söka
alternativa lösningar.
"Sedan Bolagets senaste offentliga utlåtande för över en månad
sedan har jag tillbringat en vecka i Indien för att besöka Epsilon
Carbon och dess produktionsanläggningar i Karnataka-provinsen. Där
kunde jag diskutera våra gemensamma planer för att utveckla en
anodmaterialfabrik i Finland. Vidare besökte jag Finland förra
veckan för möten om Grafintecs verksamhet. Härutöver var jag som
tidigare nämnts i Sverige tidigare under månaden.
"I Kosovo väntar vi fortfarande på slutligt godkännande av
Vardars licensansökningar. Regeringen i Kosovos arbete med att utse
nya ledamöter till den oberoende kommittén för gruvor och mineraler
("ICMM"), vilket är organet som administrerar mineraltillstånd,
förnyar licenser samt utfärdar nya licenser, återstår att slutföra.
Bolaget diskuterar för närvarande med Vardar kring ett
vinterborrningsprogram för att accelerera och ta igen delar av den
förlorade tiden från detta år.
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 .
About Beowulf Mining plc
Beowulf Mining plc ("Beowulf" or the "Company") is an
exploration and development company, listed on the AIM market of
the London Stock Exchange and the Spotlight Exchange in Sweden.
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.
The Company's asset portfolio is diversified by commodity,
geography and the development stage of its various projects.
The Company's most advanced project is the Kallak iron ore asset
in northern Sweden. A potential 389 million tonne resource which
can produce a 'market leading' concentrate of 71.5% iron content
and is a potential source of supply for fossil-free steel
production in Sweden for decades to come.
Grafintec (previously Fennoscandian Resources), a wholly-owned
subsidiary, through its Memorandum of Understanding ("MoU") with
Epsilon Advance Materials Limited ("EAMPL") is enhancing its
position within the Finnish battery ecosystem, collaborating with a
strong and innovative technology/processing partner, with plans to
develop an anode materials plant in Finland to supply the growing
lithium-ion battery sector.
In Kosovo, the Company owns approximately 4 9 . 4 % of Vardar
Minerals ("Vardar"), which is focus on exploration in the Tethyan
Belt, a major orogenic metallogenic province for gold and base
metals. Vardar is delivering exciting results for its Mitrovica
licence which has several exploration targets, including lead,
zinc, copper and gold. It also has the Viti licence which is
showing potential for copper-gold porphyry mineralisation. With
Beowulf's support, Vardar is focused on making a discovery.
Kallak is the foundation asset of the Company, but with Vardar
and Grafintec, the Company has many opportunities to grow, each
business area displaying strong prospects.
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END
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