TIDMBEM
RNS Number : 7167E
Beowulf Mining PLC
08 July 2019
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.
8 July 2019
Beowulf Mining plc
("Beowulf" or the "Company")
Almedalen 2019 and Future Plans for the Kallak Iron Ore
Project
Beowulf (AIM: BEM; Spotlight: BEO), the Nordic focused mineral
exploration and development company, provides an update on the
CEO's attendance at the Almedalen Political Week ("Almedalen")
which takes place every year in Visby, Sweden. Almedalen provides a
unique arena for Swedish decision-makers in politics, government
agencies, business, and NGOs to meet, build relationships, discuss,
and debate.
During Almedalen the CEO discussed Jokkmokk's economic
situation, the SEK 28 million cuts announced by Jokkmokks Kommun to
balance its budget and the local and regional support for the
Kallak Iron Ore Project ("Kallak ") from Jokkmokks Kommun,
Jokkmokks Allmänning, local entrepreneurs, the Mayor of Luleå and
leaders in Region Norrbotten. The CEO therefore explained the role
that Kallak would play in transforming Jokkmokk's economic future,
to one that is 'thriving, diversified and sustainable' and lives
beyond mining.
Additionally, the CEO received a number of questions regarding
what Beowulf's plans would be should the Company be awarded an
Exploitation Concession (the "Concession") for Kallak. In response
to these queries the CEO shared the Company's immediate plans for
Kallak, should the Concession be awarded, and described the
Company's ambition to build a modern, sustainable and innovative
mining operation.
In order to keep all shareholders up to date, the Company has
outlined the CEO's responses to these queries below.
Plans for Kallak
-- The Company has an immediate three-step plan for advancing
the Kallak project, in the event the Swedish Government awards the
Concession:
1. Scoping Study (the "Study") - completion within 12 months of
the Concession being awarded - and in parallel develop a roadmap
for environmental permitting.
In October 2017, the Company initiated the Study to consolidate
the technical work carried out on the Kallak project, since the
Company first started its investigations in 2010, and to develop
the roadmap for advancing Kallak to pre-feasibility stage.
The planned Study was curtailed, because of the continued delays
in processing the Kallak application, with SRK Consulting (UK)
Limited completing an audit of the geological database and model,
and validation of the Kallak mineral resource estimate.
Focus areas of the Study will be:
o the assessment of logistics, transport options from the mine
to the Inlandsbanan (alternative methods and power supplies) and
routes, with specific emphasis on the interaction with reindeer
herding activities;
o market opportunities for Kallak's production, including a
potential 'super' high-grade magnetite concentrate', over 71 per
cent iron content with low deleterious elements (silica, alumina,
phosphorous and sulphur), and what 'value add' processing steps
might be possible at Kallak;
o the partnerships, organisational structures and programmes
that are needed to prepare a workforce in readiness for mine
construction and operation; and
o the development of Kallak as an Innovation Centre, an
incubator for start-up enterprises, to be based in Jokkmokk, that
can build their businesses off a mine and diversify to other
sectors over time.
Jokkmokk and the north of Sweden have a long tradition of
entrepreneurship, and the Company has already discussed with Luleå
University of Technology opportunities to work together, using
Kallak as a 'live' case study, as part of the national strategic
innovation programme for the Swedish Mining and Metal Producing
Industry, SIP STRIM, which is part of a joint investment in
strategic innovation areas (SIP) by Vinnova, Formas and the Swedish
Energy Agency.
2. Formation of a 'Development Taskforce' with Jokkmokks Kommun
and other key partners, intended to coordinate the activities of
interested parties in Kallak, such that project development of
Kallak and the development of Jokkmokk can be fully
coordinated.
As has previously been stated by the Company, the Kallak project
is not just about a mine. Kallak is the asset on Jokkmokk's
doorstep that can give the town a 'thriving, diversified and
sustainable' economy that lives beyond mining.
The Company's ambition is to develop a 'smart and sustainable
mine', and at the same time to work in partnership with Jokkmokks
Kommun and contribute to the development of Jokkmokk into a 'smart
and sustainable city', creating the conditions for people to live
and work in the town.
3. To advance discussions with the Sami reindeer herding
communities, to listen to their concerns, find solutions together
to problems that might exist, working towards reaching mutually
beneficial agreements that ensure Sami reindeer herding,
livelihoods and culture are protected, and that Sami communities
benefit from the development of a mine at Kallak.
The Company has been a supporter of OECD initiatives over the
last 18 months, including the OECD's Rural Policy Review 'Linking
the Indigenous Sami People with Regional Development in Sweden',
and the Company intends to use the OECD's recommendations in the
development of Kallak.
One of the OECD's findings was that there is insufficient
support for Sami entrepreneurs. The Company has an established
Collaboration Agreement (the "Agreement") with Jokkmokks
Allmänning, the main purpose of the which is to invest funds and
support the development of small-medium enterprises ("SMEs") in
Jokkmokk. To date, the Company has invested SEK 500,000, and has
recently committed a further SEK 300,000 in the event the
Concession is awarded.
The Agreement provides a template for setting-up a similar
agreement with Sami communities, that supports the development of
Sami SMEs.
Kurt Budge, Chief Executive Officer of Beowulf, commented:
"Following a successful AGM in London on 29 June, I headed to
Almedalen last week.
"It is my fourth Almedalen and being there demonstrates
Beowulf's commitment to doing business in Sweden and making a
positive contribution to Swedish society, locally in Jokkmokk,
regionally in Norrbotten and as part of the world leading mining
sector in Sweden.
"Whereas, on previous visits I have focused on explaining the
protracted permitting process for Kallak, this year, in response to
a number of queries, I have been presenting the Company's plans
should the Concession be granted, against the backdrop of iron ore
prices reaching five year highs during the last week. From a
technical perspective, the completion of a Scoping Study, and from
a societal perspective, the creation of formal partnerships and
agreements with Jokkmokks Kommun and Sami reindeer herding
communities.
"Kallak is the foundation asset of Beowulf and has been in
development for 10 years. During my time as CEO, it has enabled us
to continue to raise capital from equity markets and to diversify
into new geographies and commodities, but it remains our flagship
asset, one that we are firmly committed to developing in
partnership with the community in Jokkmokk.
"On many occasions, the Company has stated its ambition to build
the most modern, sustainable and innovative mining project, but
equally exciting is to contribute to the economic resurgence of
Jokkmokk.
"The Company's investment in Kallak is aligned to the
Government's 'January Agreement' from this year, in which the
Government made the commitment that all rural areas across Sweden
should be able to develop, to build and equip railways, roads and
housing so that people can live, live and work throughout the
Sweden.
"While not wanting to rely on imports of metals and minerals
from countries that might have lower standards of environmental,
health and safety performance, and lack transparency, Sweden has
seen no greenfield mines started in more than a decade.
"Kallak would showcase the best of Swedish design, engineering
and innovation, be developed in partnership with the community,
including the Sami, safeguarding reindeer herding, their
livelihoods and culture.
"The Company has done the work required to be granted a
Concession. We hope that the Government is satisfied that is the
case, and that the patience shown by our supporters in Jokkmokk and
Norrbotten, and our 62 per cent Swedish and 38 per cent UK
long-standing individual shareholders is rewarded.
"I look forward to keeping the market updated on further
developments."
Enquiries:
Beowulf Mining plc
Kurt Budge, Chief Executive Tel: +44 (0) 20 3771
Officer 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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END
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