LONDON (ShareCast) - Beowulf Mining, a mineral exploration company, raised on Tuesday £350,000 via a share placement which according to analysts should help see it through most of the summer.
The firm placed 29.2m shares at a price of 1.2p per share, a sharp 22.6% discount from Monday's closing price.

Management believes the fresh funds will provide it "with the working capital to focus on gaining an early and positive decision by the Swedish Government on the Kallak North Exploitation Concession, and to concurrently advance other value creating opportunities."

Chief executive Kurt Budge emphasised how the funds had been raised "in a tough market for junior mining companies".
The miner's portfolio of assets ranges from gold, iron and copper to molybdenum and uranium.

At year-end 2014 the company had £190,000 of cash on hand, supplemented by another £150,000 from the settlement of the Lanstead swap in early January 2015.

Those financial resources would suffice to see the company through the summer but imply that another round of fund-raising will be necessary before then, said analysts at Shore Capital.

Furthermore, "the timing of a final decision [on Kallak North] is thus uncertain," its analysts added.

As of 15:04 shares in Beowulf were trading 17.74% lower at 1.27p.

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