Shares jump as Beowulf's Kallak deposits are designated 'Area of National Interest'

Shares in AIM-listed mineral exploration company Beowulf Mining rose after the company reported that its Kallak deposits had been designated an 'Area of National Interest' for minerals by the Swedish Geological Society.

The designation affords protection, to the extent possible, against competing land use and measures that may hinder future potential mineral extraction in the Kallak project area.

Beowulf Mining reported that the designation had been granted because the Swedish Geological Society deemed that the area contained "deposits of substances or minerals of national interest".

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Clive Sinclair-Poulton, Executive Chairman of Beowulf Mining, commented: "We are delighted with the SGU's [Swedish Geological Society's] decision to designate our Kallak deposits as an Area of National Interest with respect to its valuable mineral content.

"The designation should be taken into account by the relevant Swedish authorities when assessing the group's future Kallak permitting applications and be of great assistance as we proceed to prove up the project's significant iron ore potential."

Beowulf is focussed on developing its Kallak North and Kallak South iron ore deposits in northern Sweden.

The Kallak project currently covers a total area of approximately 161.67 square kilometres, comprising seven separate licences.

According to the Swedish Geological Society, Sweden is currently the largest producer of iron ore in the EU with over 26m tonnes of the mineral produced in Sweden from four mines during 2012.

Following a day-high of 13.49p per share, Beowulf Mining's share price was up 2.94% to 13.12p at 11:51 on Monday.

MF