LONDON (ShareCast) - AIM and Sweden-listed iron play Beowulf Mining has agreed to raise £1.6m from institutions and its major shareholder, with plans to raise a further £0.4m in an open offer to retail investors.

The explorer, which is focused on the Kallak iron ore projects in northern Sweden, wants the funds to continue exploration at Kallak and for general working capital purposes.

It cited "very promising assay results" from Kallak North's second phase of drilling recently, with the first four holes totalling 1,191m all having returned long intercepts of mineralisation with two running at over 40% iron.

A full 11,000m of drilling is planned under the existing permit, taking Beowulf up to October 2015.

At Kallak South, 5,000m of "encouraging" drilling was completed in the 2014 winter programme and a new work programme is now in place including up to 18,000m of drilling before the end of 2015.

The boardroom has also been reshuffled with Anthony Scutt and Edward Taylor set to retire as non-executives, to be replaced by Kurt Budge and Bevan Metcalf who have both recently held senior positions at other AIM-listed iron ore companies.

House broker Cantor said: "The additional funds will clearly be useful as the company seeks to push on with the evaluation of its project portfolio."

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