Via Dannys on Avanza5 Oct 2020 11:05
Från: Kurt Budge
Skickat: den 1 oktober 2020 17:28
Till: Peder Nielsen
Ämne: Beowulf Mining - Kallak
Dear Mr Nielsen,
Further to the Committee’s review of the Government’s handling of our Kallak North application (the
“Application”) for an Exploitation Concession (the “Concession”), I wanted to provide you with some
comments from Beowulf Mining (“Beowulf” or the “Company”).
Beowulf has been working with Kallak since 2006. Over the last 14 years, the Company has spent
over SEK 80 million in developing the Kallak resource and preparing an Application for an Exploitation
Concession for the Kallak North deposit.
The Company’s Application has been on the Government’s desk since July 2017. This is the second
time the Government has had the Application. The Application was also on the Government’s desk
between February 2015 and July 2016.
In October 2015, Bergsstaten, part of the Government Office Sveriges geologiska undersökning
(“SGU”), recommended to the Government that the Concession be awarded. Bergsstaten is also the
authority that awarded the original exploration licence, subsequent licences and granted renewals.
In September 2017, Minister Damberg was quoted in the Swedish media as saying that Swedish law
is enough for testing our Application, and that the permitting process should be ‘by the book’.
In September 2019, in response to a letter I had written to him, Minister Baylan explained that since
the CEO"s request for a meeting "concerns a forthcoming Government decision - a dossier that is
currently under preparation", the Government is unable to meet or comment with regard to its
"ongoing review". That response was 12-months ago.
I attach correspondence between me and Minister Baylan from 2019 and 2020, and a letter from our
Chairman to Minister Baylan sent last year. I have provided further background information below on
the chronology of events.
Minister Baylan has spoken publicly about the need for transparency and predictability in permitting
processes. However, Beowulf has no idea what process is being followed or the timeline for a
decision being taken by the Government.
As a public company, listed in London and Stockholm, over 67% owned by Swedish shareholders, the
uncertain status of our Application has significant implications for the Company’s share price and our
ability to raise capital from equity markets.
I apologise for the delay in getting this email to you. Please do not hesitate to contact me if you have
any questions.
Kind regards,
Kurt
Kurt Budge
Chief Executive Officer