Beowulf Mining plc (LON:BEM) saw shares tank nearly 39% in early London deals as its most advanced project was dealt a bitter blow.
The county administrative board for Norrbotten (CAB) in Sweden has not recommended to the government an exploitation licence for the Kallak North project.
"Beowulf are reviewing the response in detail and will update the market as and when appropriate," the firm said in a brief regulatory statement after market close on Thursday.
Kallak is a magnetite iron ore deposit
Shore Capital, in a note this morning, said: "Oh dear. The County Administrative Board for Norrbotten County (CAB) has decided not to play ball."
Kallak is mainly a magnetite iron ore deposit in northern Sweden. It has a JORC compliant indicated resource of 118.5 million tonnes at 27.5% iron and an inferred resource of 33.8 million tonnes at 26.2% iron.
Beowulf shares slid 38.82% to 6.50p.