(Alliance News) - Beowulf Mining PLC has been awarded an exploration permit for Parkijaure 6, situated to the south of Kallak North and South deposits in Sweden, the exploration company said Thursday.
The Parkijaure 6 licence covers almost 1,000 hectares and has magnetite iron ore similar to the Kallak North and South deposits.
"The magnetic signature of mineralisation at Kallak, extends southwards from Kallak North to Kallak South, and then beyond to Parkijaure. Interpretation of geophysical data suggests the potential for additional magnetite mineralisation, which could add to the Kallak North and Kallak South resource," Beowulf said.
Beowulf Chief Executive Kurt Budge said: "Having been awarded the Parkijaure 6 exploration licence, we are reviewing existing geophysics and have already begun testing passive seismic technology at Kallak, with a view to using this non-invasive exploration technology to help define additional iron ore resource."
Beowulf has awarded a contract to GeoVista AB in Sweden to re-assess existing geophysical data and determine if an additional exploration target is warranted at Parkijaure, to add to the Kallak South Exploration Target.
The Sweden-focused separately said it has raised GBP500,000 via a share subscription. The company issued 9.1 million new ordinary shares at 5.5 pence each. Beowulf shares were down 14% at 6.25p each in London on Thursday morning.
The funds will be used for general working capital purposes, as well as legal advice in respect of the Kallak North application and give the company financial flexibility to support Vardar Mineral's plans for the Mitrovica and Viti Projects in Kosovo. Beowulf Mining owns a 40% stake in exploration company Vardar.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Beowulf (BEM)