Press release from Companies
Published: 2019-06-19 08:00:14
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. 19 June 2019 Beowulf Mining plc ("Beowulf" or the "Company") Management Update Beowulf (AIM: BEM; Spotlight: BEO), the Nordic focused mineral exploration and development company, provides a management update. Kallak North Supporting Small and Medium Enterprise (“SME”) Development in Jokkmokk 3rd OECD Meeting for Mining Regions and Cities, Skellefteå, Sweden, 11-13 June Vardar Minerals (“Vardar”) Kurt Budge, Chief Executive Officer of Beowulf, commented: “Our involvement in OECD reviews and meetings reminds us of the contribution that mining investments can make to regional economies that are endowed with minerals and metals, but also that future mining projects need to be developed in partnership with communities, so the benefits are maximised. Since I joined the Company in September 2014, this is the approach Beowulf has taken to the development of Kallak. “At the recent OECD meeting, Mikael Staffas, CEO of Boliden spoke about the rapid growth in demand for metals as society moves towards a fossil-free and ‘Clean Energy’ economy, and the EU’s current dependence on imports. Again, he mentioned permitting as a problem. In January 2019, he made similar comments at the Future Mine and Mineral Conference in Stockholm, when he said that if authorities grant exploration permits and an exploration company invests and finds a mining opportunity, then that company needs to be able to develop the opportunity. “As the EU’s largest iron ore producer, LKAB also presented at the OECD meeting, and showed the stark reality that steel production capacity reliant on iron ore, as part of a ‘Circular Economy,’ is forecast to grow from 1 billion tonnes in 2010 to 1.4 billion tonnes in 2050. “Despite these demand drivers for future sources of production and the need for ‘security of supply’ in an ever more uncertain world, progress with Kallak has been derailed by perceived issues, the possible impact of a mine on Sami reindeer herding and the World Heritage Status of Laponia. “Across Sweden, the mining industry and other sectors reach practical and commercial agreements with Sami communities and work together. While at the local level we have had difficulty engaging with Sami reindeer herding communities, as they wait for a decision from the Government, we are engaging with Sami parliamentarians as we seek to present Kallak and our approach to its development. With regards to Laponia, it has been stated by the Swedish Environmental Protection Authority (Naturvårdsverket) and the Swedish National Heritage Board (Riksantivarieämbetet) that Kallak would have no direct impact. Of relevance, is that Aitik, Sweden’s largest open pit copper mine, is situated in closer proximity to Laponia than Kallak, and Laponia received its World Heritage Status almost 30 years after Aitik was established, and in spite of Aitik. “We have been granted exploration and other permits by Swedish authorities, we have invested over SEK 77 million and, since October 2015, we have a recommendation from the Mining Inspectorate that an Exploitation Concession for Kallak North should be awarded. During this period, the County Administrative Board for the County of Norrbotten has failed to follow the prescribed assessment process for an application such as ours and has never been held to account for its inaccurate and misleading statements. These are the facts. “It is incomprehensible to me that the Swedish Government could ignore the facts and, for whatever reason, find a way not to award the Concession; causing further damage to Sweden’s reputation as an attractive destination for mining investors. We have it, that the Government recognises the importance of Kallak to Jokkmokk’s economic future, and, if this is truly their mind, then we should have no cause for concern. “I look forward to keeping the market updated on further developments.” Enquiries: 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.
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