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Subscription in Sweden and the UK to raise approximately £1.0 million

21 December 2016

Beowulf Mining plc

(“Beowulf” or the “Company”)

Subscription in Sweden and the UK to raise approximately £1.0 million

Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company focused on the Kallak magnetite iron ore project and the Åtvidaberg polymetallic exploration licence in Sweden, and its graphite portfolio in Finland, is pleased to announce a subscription for new ordinary shares to raise approximately £1.0 million before expenses (the “Subscription”).

Background to the Subscription and Use of Proceeds

As announced on 1 December 2016, the Company was, at that time, 49.52% owned by Swedish shareholders. During the last two years, ownership in Sweden has more than tripled, and the Company’s shares are actively traded on the AktieTorget.

With the increased level of ownership and market liquidity in Sweden, the Company recently engaged Stockholm Corporate Finance (“SCF”) as its financial adviser, to investigate the potential for raising funds from Swedish investors and, as a result, Beowulf has raised approximately £860,000 (before expenses).

On completion of the current fundraising the percentage owned by Swedish shareholders will increase to 51.50%.

In addition, the Company has raised an additional £140,000 in the UK to complete the £1.0 million raise.

The funds will be used for:

  • exploration and development activities on the Company’s graphite projects, including a 2,000 metre drilling programme at Haapamäki, Pitkäjärvi and Aitolampi, sampling, assays, metallurgical testwork, resource definition and a preliminary economic study;
  • a desktop review of the recently discovered historical archive of information on some of Beowulf’s brownfield exploration targets at Åtvidaberg, in support of further geophysics later in the year;
  • a Scoping Study on the Kallak North project, to be conducted after the award of the Exploitation Concession; and
  • general working capital purposes.

Details of the Subscription, Issue of Equity and Total Voting Rights

Pursuant to the Subscription, the Company will issue to Swedish investors 20,000,000 new ordinary shares (the “Swedish Subscription Shares”) to raise approximately £860,000 (before expenses) at a price of 0.5 SEK per new ordinary share.

Pursuant to the Subscription, the Company will also issue to UK investors 3,333,333 new ordinary shares (the “UK Subscription Shares”) (the Swedish Subscription Shares and the UK Subscription Shares together referred as the “Subscription Shares”) to raise approximately £140,000 (before expenses) at a price of 4.2 pence per new ordinary share.

Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM on or around 22 December 2016 (“Admission”). The Subscription Shares will rank pari passu with the existing ordinary shares.

Following Admission, and in accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, the Company hereby announces that it will have 502,630,331 ordinary shares of £0.01 each in issue, each share carrying the right to one vote. The Company does not hold any ordinary shares in treasury.

Following Admission, the above figure of 502,630,331 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

Kurt Budge, Chief Executive Officer of Beowulf, commented:

“It is an important milestone for the Company to have raised funds in Sweden, and now over half the Company is owned by Swedish investors.

“It is therefore important to reflect on the progress that we have made over the last two years, which began in early 2015, with Beowulf voicing the approach of new management; one of respect for our stakeholders; becoming a local partner; and delivering responsible development. Later that year, the Company also gained the support of the County Administrative Board and the recommendation of the Mining Inspectorate of Sweden for our Kallak North application.

“More recently, we have been hearing and reading positive statements, made by key stakeholders in Jokkmokk, regarding the potential of Kallak and have now completed a £1.0 million fundraising (before expenses), which was 86% funded by Swedish investors.

“Beowulf is committed to building a modern and sustainable mining business, in partnership with our stakeholders and with the support of our shareholders; Sweden is a great place to do just that.

“We finish 2016 with sufficient funds to enable us to get straight to work in January 2017. It will be another busy year.

“All of us at Beowulf would like to wish our stakeholders and shareholders a Merry Christmas and a Happy New Year.

”God Jul och Gott Nytt År”

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

Beowulf Mining plc

 

Kurt Budge, Chief Executive Officer

Tel: +44 (0) 20 3771 6993

Cantor Fitzgerald Europe

(Nominated Advisor & Broker)

 

Phil Davies / David Porter

Tel: +44 (0) 20 7894 7000

Blytheweigh

 

Tim Blythe / Megan Ray

Tel: +44 (0) 20 7138 3204

Cautionary Statement

Statements and assumptions made in this document with respect to the Company’s current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of Beowulf. Forward-looking statements include, but are not limited to, those using words such as “may”, “might”, “seeks”, “expects”, “anticipates”, “estimates”, “believes”, “projects”, “plans”, strategy”, “forecast” and similar expressions. These statements reflect management’s expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where Beowulf operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Beowulf’s continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) metal prices, particularly as regards iron ore. In the light of the many risks and uncertainties surrounding any mineral project at an early stage of its development, the actual results could differ materially from those presented and forecast in this document. Beowulf assumes no unconditional obligation to immediately update any such statements and/or forecasts.