Divestment of Grundtrask Exploration Licences

RNS Number : 5002M

Beowulf Mining PLC

14 October 2016

 

14 October 2016

Beowulf Mining plc

("Beowulf" or the "Company")

Divestment of Grundtrӓsk Exploration Licences

Beowulf (AIM: BEM; Aktietorget: BEO), the mineral exploration and development company, focused on the Kallak magnetite iron ore project and the Åtvidaberg Volcanogenic Massive Sulphide ("VMS") lead-zinc-copper-silver exploration licence in Sweden, and its graphite portfolio in Finland, is pleased to announce the divestment of its Grundtrӓsk gold exploration licences.

Highlights

·   The Company has divested its Grundtrӓsk nr 6 and nr 7 gold exploration licences to Erris Resources Limited ("Erris", http://errisresources.com).

·   Erris is a private exploration and development company, founded in 2013 by David Hall, Chairman of Horizonte Minerals plc and founder of Stratex International plc.

·   The cash consideration paid by Erris is deferred.

·   Beowulf will receive a first payment of US $200,000 on announcement by Erris of an independently audited JORC Code compliant indicated resource of 100,000 ounces of gold.

·   In addition, a second payment of US $2 per ounce, on announcement by Erris of an independently audited JORC Code compliant indicated resource for Grundtrӓsk of at least one million ounces.

·   And finally, a 1% net smelter royalty payment ("NSR") for gold produced from the licence areas being transferred to Erris.  Erris has the right to buy back the NSR for US $2 million.

·   The Company has applied to the Mining Inspectorate of Sweden for a transfer of the licences to Erris. The transfer of the licences is conditional on approval by the Mining Inspectorate.

Kurt Budge, CEO, commented:

"I am very pleased to announce the divestment of Grundtrӓsk to Erris.

"Beowulf rationalised its exploration portfolio in 2015, reducing the total area held and associated running costs, while maintaining the most interesting parts of Grundtrӓsk.

"Grundtrӓsk has remained a non-core asset to Beowulf, and, in Erris, we have found a company with the ambition and requisite expertise to advance our mutual interests and potentially realise value from these licences."

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

Beowulf Mining plc
Kurt Budge, Chief Executive Officer	Tel: [phone]
Cantor Fitzgerald Europe (Nominated Advisor & Broker)
David Porter / Phil Davies	Tel: [phone]
Blytheweigh
Tim Blythe / Megan Ray	Tel: [phone]

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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