Beowulf Mining (AIM:BEM) has announced an agreement for a £3.5m investment from Bacchus Capital & Affiliates, as part of a total £4m financing that's intended to recapitalise the company and fund work at the Kallak project in Sweden and Grafintec in Finland.
The strategic investment would be conducted at 3p per share, and would see Bacchus owning 59% of the enlarged company.
Beowulf, meanwhile, said the funds will underwrite updated scoping and progress towards a PFS at Kallak, including infill and exploration drilling and environmental work, advance the GAMP EIA and pilot testing in Kotka, and review value-add drilling at Rääpysjärvi.
Bacchus and a third party have provided interim financing and acquired royalties totalling 2.25% over Finland for US$200,000 and 2.25% over Sweden for US$100,000, with repurchase options for the Sweden royalty and an option to repurchase 50% of the Finland royalty for specified sums.
"Securing this proposed Strategic Investment will represent a watershed moment for the company," said Ed Bowie, Chief Executive.
Its anticipated that the parties will sign definitive documentation by 12 June, followed by a shareholder vote by 24 July.
