Beowulf confirms terms of £4.6m capital raise
By Josh White
Date: Friday 04 Apr 2025
(Sharecast News) - Beowulf Mining confirmed the final terms of its multi-part capital raise on Friday, aiming to generate up to £4.6m in gross proceeds to support the development of its Kallak iron ore project in Sweden and a graphite anode materials plant in Finland.
The AIM-traded firm said the raise would include a £1m conditional placing, a SEK 38.2m (£3m) preferential rights issue of Swedish depository receipts (SDRs), and a retail offer of up to £0.7m via the Winterflood Retail Access Platform in the UK.
It said the rights issue was partially underwritten, with commitments covering SEK 15m, or about 40% of the total offer.
Shares in the UK would be offered at 11e each, while SDRs in Sweden would be priced at SEK 1.40, reflecting a 31% discount to the theoretical ex-rights price based on recent trading.
Existing shareholders would be given priority in the UK retail offer, though the offering would also be open to new investors in Sweden without preferential rights.
Net proceeds from the raise, estimated at £4m, would primarily fund completion of the pre-feasibility and environmental studies at Kallak, advance permitting and technical work for the Finnish graphite project, and cover working capital through the first quarter of 2026.
A portion of the funds would also be used to repay bridge loan financing.
Issue of the new shares and SDRs would be subject to shareholder approval at the upcoming general meeting on 8 April.
"The company has made significant progress across the portfolio over the last 12 months," said chief executive officer Ed Bowie.
"Completing the PFS at the GAMP represents a major step forward in defining the technical and economic parameters of the project.
"Meanwhile at Kallak, we have substantially completed many of the workstreams required for both the PFS and the environmental permit application."
Bowie said both projects were now attracting the interest of potential strategic partners, adding that the company would continue to advance those discussions.
"At the same time, the security of supply chains, not least for the defence agenda, has never been more at the forefront of international news.
"We have benefited from generous support through the Business Finland BATCircle grant funding programmes and continue to review opportunities for similar support."
The current capital raise would enable the firm to continue to advance its assets while seeking alternative and less- or non-dilutive forms of capital, Ed Bowie explained.
"Completing the GAMP PFS represented the first step in demonstrating the true potential and value of the portfolio.
"We thank shareholders for their support in getting to this point and hope you will continue to support through the next exciting phase as we unlock further value."
At 1153 BST, shares in Beowulf Mining were down 39% at 12.2p.
Reporting by Josh White for Sharecast.com.
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