TIDMBEM
RNS Number : 4058G
Beowulf Mining PLC
06 November 2018
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations ("MAR") (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of Kurt Budge, Chief Executive Officer.
6 November 2018
Beowulf Mining plc
("Beowulf" or the "Company")
Exploration Investment in Kosovo
Beowulf, the Nordic focused mineral exploration and development
company, has acquired new shares representing an initial 14 per
cent interest in Vardar Minerals Limited ("Vardar"), a private
exploration company with interests in the Balkans, for the
consideration of GBP250,000 to be satisfied in cash ("Investment").
The Company also has an option to make a further investment and
increase its ownership in Vardar. This investment provides the
Company with exposure to a number of porphyry related copper, gold
and base metal targets in the prospective Tethys Arc. The region is
rapidly becoming a focus for major exploration investment following
significant discoveries in the last decade.
Highlights
-- The investment into Vardar gives Beowulf exposure to a
portfolio of exploration licences situated in the European Tertiary
calc-alkaline Tethys Arc most notable for its lead-zinc-silver
mining districts, as well as recent porphyry related copper and
gold discoveries.
-- The Balkans are currently experiencing an increased focus
from explorers following significant recent discoveries and
generally improving conditions in the region.
-- Vardar has a highly experienced management team, which has
adopted a rigorous and methodical approach to selecting areas of
interest and acquiring licences.
-- Vardar has four wholly owned exploration licences in Kosovo
and two more under a purchase agreement whereby Vardar will own 85
per cent of the licences. The combined coverage is a total of 333.2
square kilometres ("km(2)").
-- For ease of reference the licences are split into three
projects Mitrovica, Viti, and Drazna.
-- Mitrovica, situated in northern Kosovo adjacent to the
significant Stan-Terg lead-zinc-silver mine, exhibits alteration
typical of porphyry-epithermal systems. Highlights from this
licence include gold and silver anomalies associated with advanced
argillic alteration, several iron stockworks, breccias and gossans
with associated copper and lead-zinc anomalies. The project is
prospective for high-sulphidation gold, porphyry copper-gold and
vein/replacement related base metal targets.
-- Viti is situated in south-eastern Kosovo and is made up of
three adjacent licences covering 213 km(2) . The main exploration
target is an interpreted circular intrusive body identified in
magnetic data. There is evidence of intense alteration typically
associated with porphyry systems, with several copper occurrences
and stream sample anomalies in proximity to, and within, the
licence areas. In addition, Viti is prospective for lithium-boron
mineralisation, with a geological setting similar to Rio Tinto's
Jadar deposit in Serbia.
-- Drazna is situated on Kosovo's western border, in proximity
to the Kiseljak copper-gold porphyry and Draznja lead-zinc mine.
The licence has several alteration centres typical of
porphyry/epithermal systems.
-- The net proceeds of the Investment will be used to fund
Vardar's exploration programme and general working capital
requirements.
-- So long as the Company has an interest in 14% or more of the
issued share capital of Vardar, it will be entitled to appoint a
director to the Board of Vardar. Kurt Budge will be Beowulf's
initial appointee.
Vardar is a UK registered exploration company with a focus on
the metal endowed Balkan region. Vardar was founded by Luke Bryan
and Adam Wooldridge, who together also founded Kalahari Metals
Limited, a UK company into which Metal Tiger Plc recently announced
a second significant investment. More information on Vardar can be
found at https://vardarminerals.com/.
Kurt Budge, CEO, commented:
"We are very pleased to make this investment in Vardar and we
are excited about the opportunities that this could bring to
Beowulf.
"Stepping into a new geography, like Kosovo, only makes sense if
you are collaborating with a competent team, which we have in
Vardar's founders, Luke Bryan and Adam Wooldridge, with experienced
technical and support personnel in Kosovo.
"Chris Davies Non-executive Director and I visited Kosovo and
Vardar's projects in early October. As a potential investor, we
were welcomed by a representative of the Government, and by staff
at the licencing authority, the Independent Commission for Mines
and Minerals ("ICMM"), all keen to show Kosovo as an attractive
place for companies to invest, explore and develop mining
projects.
"One of the goals for 2018 was to identify M&A opportunities
that would complement Beowulf's portfolio. With our initial
investment in Vardar, we have taken a modest step into Kosovo,
creating diversification for the Company, in commodity mix and
geography, and potential upside with additional exploration."
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Officer Tel: +44 (0) 20 3771 6993
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Soltan Tagiev Tel: +44 (0) 20 3470 0470
Blytheweigh
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138 3204
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to, (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecasts.
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contact rns@lseg.com or visit www.rns.com.
END
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