The directors of Beowulf Mining PLC ('Beowulf' or 'the Company') the AIM listed copper, gold and uranium explorer, are pleased to announce that they have signed a convertible loan agreement with Starvest Plc.
The loan is for £250,000, bears interest at 4% per annum, and is convertible in to new ordinary shares of Beowulf at 4p per share at any time prior to 31 July 2012 at the option of Starvest Plc.
Starvest Plc are an AIM-traded company and constitute a related-party to Beowulf since they are a major shareholder in Beowulf and Mr A C R Scutt is a director of both companies.
Because the above agreement constitutes a related party transaction for the purposes of the AIM Rules, the Independent Director's of Beowulf - Dr Robert Young, Ed Taylor and Jan-Ola Larsson consider, having consulted with the Company's Nominated Adviser, Ruegg & Co Limited, that the terms of the agreement are fair and reasonable insofar as the Company's shareholders were concerned.
Commenting on the loan provision, Dr. Robert Young, Chairman of Beowulf stated 'The new funds will allow us to expand our exploration projects in Northern Sweden this year, especially the Ruoutevare iron ore project'.
