Beowulf Mining PLC (AIM:BEM) announced it has raised £1 million in a placing, as part of a broader funding, with proceeds earmarked for the Kallak iron ore project in Sweden and the GAMP graphite project in Finland.
Also, it is planning a rights issue and a retail share offer, to raise another £1.1 million, and the firm is also taking a bridge loan of around £760,000.
“The significant progress the company has made across its core assets has not been reflected in the company's share price performance and the proposed capital raise will inevitably result in further equity dilution at a depressed valuation,” chief executive Ed Bowie said in a statement.
“Given the challenging markets, the company's directors have sought to structure the transaction and position the company in a way to ensure that, with the minimum net proceeds, the projects can be progressed, albeit at a reduced rate until at least the end of the year.”
In London, Beowulf shares fell 19% to trade at 17p.