LONDON (ShareCast) - Shares in Boewulf Mining tumbled after the mineral exploration and development company said it has raised £650,000 before expenses from a placing and subscription.
It placed 49.6m shares and directors subscribed for 2.4m new shares at a price of 1.25p per share.

Chief executive officer Kurt Budge subscribed to 1.2m, increasing his holding to just over 2.2m shares, or 0.52%, while chairman Bevan Metcalf subscribed to 1.2m, raising his holding to just under 2.2m shares, or a 0.51% stake.

Beowulf also issued 617,284 new ordinary shares to Beaufort Securities at a price of 2.025p in lieu of their broker fees for six months.

Application will be made to the London Stock Exchange for the new ordinary shares to be admitted to trading on AIM on 23 July 2015.

CEO Budge said: "With limited cash Beowulf has been able to further demonstrate the quality of Kallak North and move closer to what we hope is a positive decision on the Exploitation Concession; news of both developments being well received by the market.

"It is a real challenge to create value without the cash to develop ideas; with the proceeds of this fundraising we can now accelerate the implementation of our strategy."

At 1508 BST, the company's shares were down 36% at 1,3890p.

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