(Sharecast News) - Beowulf Mining announced on Wednesday that it will seek to raise £1.5m for its graphite exploration efforts through the placement of 30m new shares at five pence per share.
Specifically, the AIM-traded company will use the proceeds to fund the exploration, drilling and further development of the Kallak magnetite iron ore project in Sweden, which the company has already invested £42.8m.
The new shares will bring the company's total shares to 566.3m.
Kurt Budge, chief executive of Beowulf Mining, said: "It is disappointing to raise funds at a lower price than one year ago, a result of further delays in the Kallak permitting process, but we are very pleased to have completed this fundraising, which maintains our strong cash position, and enables us to keep investing and developing projects across Beowulf's three main business areas."
Beowulf has recorded no revenue in the last two years and in 2017 the company's pretax loss widened by 58% to £1m due to impairments and higher administrative expenses.
Beowulf's pretax loss widened to £1m in 2017 from £633,229 the year before due to impairments and higher administrative expenses and it recorded no revenue in either 2017 or 2016.
"While we wait for the government to decide on our application, we are not sitting idle.
I am excited with the progress we are making with both our graphite portfolio and with our Atvidaberg licence, and we continue to look outside the company for merger and acquisition opportunities," said Budge. As of 1615 BST, Beowulf Mining's shares were down 15.91% at 5.55p.
Investors should be aware that past performance is not a reliable indicator of future results and that the price of shares and other investments, may fall as well as rise and the amount realised may be less than the original sum invested.
Walker Crips Group plc (Old Change House, 128 Queen Victoria Street, London EC4V 4BJ), registered in England, registered number 1432059, incorporates the following companies which are authorised and regulated by the Financial Conduct Authority: Walker Crips Investment Management Limited registered in England number 4774117 member of the London Stock Exchange, Walker Crips Wealth Management Limited registered in England number 3790291, Ebor Trustees Limited registered in England number 3514268, Barker Poland Asset Management LLP registered in England and Wales number OC341149.