Beowulf Mining PLC (AIM:BEM) has confirmed a £4.6 million equity raise to advance Scandinavian projects.
It comprises a share placing, a rights issue of Swedish Depository Receipts, and a UK retail offer via the Winterflood platform.
New shares will be issued at 11p each, a deep discount from Thursday’s close, whilst the Swedish SDRs will be priced at 1.4 Kronas.
Proceeds are earmarked for the Kallak iron ore project in Sweden and the Graphite Anode Materials Plant in Finland.
Chief executive Ed Bowie told investors the injection will allow Beowulf to advance the assets whilst seeking less dilutive sources of funds, and unlock “the true potential and value” of its portfolio.
"The company has made significant progress across the portfolio over the last twelve months … Both projects are now attracting the interest of potential strategic partners and we will continue to advance these discussions,” Bowie said.
Beowulf expects to complete pre-feasibility studies and environmental assessments with the proceeds.
In London, Beowulf shares were down sharply, losing 38% to trade at 12.4p.