Beowulf Notes Minister Comment That Kallak Decision "Forthcoming"

(Alliance News) - Beowulf Mining PLC on Friday said Sweden's minister for enterprise & innovation will not meet with the firm's chief executive as the meeting "concerns a forthcoming government decision".

Shares in Beowulf were up 4.1% at 6.38 pence in London in morning trade.

The miner also said an undisclosed Stockholm law firm had been hired to review Beowulf's Kallak mine concession application.

"The legal analysis is unequivocal, that the company has robustly argued its case for a concession to be awarded," said Beowulf.

Beowulf has been trying, without success, to gain government approval for its Kallak iron ore project in Sweden. Its CEO, Kurt Budge, had requested a meeting with Enterprise & Innovation Minister Ibrahim Baylan to discuss the application.

However, the minister said he cannot meet with Budge because his request "concerns a forthcoming government decision - a dossier that is currently under preparation", meaning the government cannot meet or comment on the "ongoing review".

Budge commented: "It is positive that Baylan writes about a 'forthcoming decision'.

"It's six and a half years since the Kallak application was first submitted and it's widely recognised in Sweden that the company's application has been completely mishandled, and the case is rightly a focus for investors considering the feasibility of Swedish mining projects."

The CEO added: "We appear to be moving towards a decision by the government, our discussions in Jokkmokk are about the future of Kallak and the town, working in partnership with the municipality, the community and the Sami reindeer herding community.

"Beowulf's Swedish and UK shareholders are justifiably exasperated by the Kallak saga. Their investment of SEK80 million, about GBP6.6 million, in Kallak over a decade deserves more. The legal analysis of our case is unequivocal and there should be no impediment to the concession for Kallak being granted. I look forward to keeping the market updated."

By Anna Farley; annafarley@alliancenews.com

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