Beowulf raises £6.7m for assets that could go on block

Mineral explorer Beowulf said it had successfully raised £6.7m in a share placement with UK and Swedish institutional and other investors.

The company intends to use the proceeds to finance further exploration at its Kallak iron ore projects, as well as planned drilling acitivities on its Ballek copper and gold joint venture project, both in Sweden.

Remaining funds would be used for general working capital purposes, the firm said.

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The new shares would represent approximately 21% of Beowulf's enlarged issued share capital, it said.

At the same time the firm it said it had entered into a non-binding letter of intent with a third party which wanted to conduct a comprehensive six month due diligence exercise and analysis of Beowulf's iron ore projects at Kallak and Ruoutevare.

The unnamed firm was doing the research with a view to potentially tabling a proposal "to acquire a majority interest in, or the whole of, the company's iron ore assets subject, inter alia, to requisite shareholder and board approvals at such time", Beowulf said.

"Shareholders should note that there can be no certainty that any proposal, on terms acceptable to the Board or otherwise, will ultimately be received and a further announcement will be made if and when appropriate," it added.