Beowulf Regulatory News (BEM)

9 May 2005 08:30

Beowulf Mining PLC09 May 2005 9 May 2005 Beowulf Mining plc Admission to AIM Beowulf Mining plc ("Beowulf" or the "Company"), today announces that, witheffect from 08.00am today (9 May 2005), its existing ordinary shares of 1p each("Ordinary Shares") have been admitted to AIM. Ruegg & Co Limited is acting asthe nominated adviser and Phillip Securities (UK) Limited is acting as broker. Words and expressions defined in the Admission Document dated 29 April 2005shall have the same meaning as in this announcement. Key Statistics Number of Ordinary Shares in issue at Admission 56,023,247Number of options and warrants outstanding upon Admission* 29,817,033Market Capitalisation of the Company at 9.75p per Ordinary Share** £5.46 million * Full details of the options and warrants are set out in the Admission Document** Being the mid-price per Ordinary Share at the close of business on 6 May 2005as quoted on OFEX The Company is engaged in mineral exploration and is focused primarily onexploration for copper and gold deposits in three areas of northern Sweden: 1. The "Jokkmokk" area, consisting of the Majves 1 and 2, Tjaula and Karvoexploration permits covering 8,200 hectares. 2. The "Grundtrask" area, consisting of the Grundtrask 1, 2 and 3exploration permits covering 4,276 hectares. 3. The "Ussalahti" area, consisting of the Ussalahti 1, 2 and 3 explorationpermits covering 923 hectares. Zones of mineralisation have been identified in two of these areas and will bethe subject of further investigation during 2005, including a diamond drillingprogramme. The Directors will attempt to secure additional exploration claims inSweden and possibly other Scandinavian countries during 2005 and 2006. In orderto expand its activities Beowulf will seek other joint venture partners. Bob Young, Managing Director at Beowulf, said, "We are very pleased to see our company commence trading on AIM and we look forward to keeping the market updated as progress is made". - Ends - For further information, please contact:Beowulf Mining plc Ruegg & Co Limited Phillip Securities (UK) LimitedBob Young Gavin Burnell Nick Bealer Brett MillerT: 01353 649701 T: 020 7584 3663 T: 020 7426 5986 NOTES TO EDITORS About Beowulf Mining plc The Company is engaged in mineral exploration and is focused primarily onexploration for copper and gold deposits in three areas of northern Sweden: 1. The "Jokkmokk" area, consisting of the Majves 1 and 2, Tjaula and Karvoexploration permits covering 8,200 hectares. 2. The "Grundtrask" area, consisting of the Grundtrask 1, 2 and 3exploration permits covering 4,276 hectares. 3. The "Ussalahti" area, consisting of the Ussalahti 1, 2 and 3 explorationpermits covering 923 hectares. Zones of mineralisation have been identified in two of these areas and will bethe subject of further investigation during 2005, including a diamond drillingprogramme. The Directors will attempt to secure additional exploration claims inSweden and possibly other Scandinavian countries during 2005 and 2006. In orderto expand its activities Beowulf will seek other joint venture partners. The Beowulf project areas in northern Sweden are located in areas underlain bygeology with a proven potential for hosting iron oxide copper gold, orogeniclode-gold and stratiform copper-gold deposits. The first two of these types ofmineralisation support mining operations in northern Sweden - the Aitik coppermine and the Svartliden gold mine. The first project area is at Jokkmokk, where a boulder containing a high gradeof copper was located by geological investigations in 2003. During 2004, Beowulfand Phelps Dodge via the Joint Venture, conducted drilling and mobile metal iongeochemistry over the Majves claims. This showed an intersection of 110 metresof 0.82% copper equivalent. Drilling of an initial 1,500 metres has commenced in2005 under the Joint Venture and if the drill results are positive it isanticipated that additional drilling will be undertaken. It is hoped that aniron oxide copper gold deposit will be outlined in 2005. By an option agreement between the Company and Phelps Dodge Exploration SwedenAB ("Phelps Dodge") dated 2 April 2004 and as amended by a further agreementbetween the parties on 28 June 2004, the Company has granted Phelps Dodge theright to earn up to 80% ownership of any development projects on any of theMajves 1, Majves 2, Karvo 1 and Tjaula 1 licence areas by funding allexploration costs, including the cost of a full (bankable) feasibility study onany deposit found. Following a decision to proceed to development, Beowulf willhave to fund its share of the development costs in order to retain its 20%interest, or revert to a 1.5% net smelter return. Phelps Dodge is currentlyincurring expenditure on the licence areas, but as at 25 April 2005 (being thelatest practicable date prior to the publication of this document) had notformally elected to earn the first portion of its potential 80% interest. The second project area is Grundtrask in the Skellefte mining district.Diamond drilling during 2004 revealed gold mineralisation of over one gram per tonne of ore over widths of up to 17 metres. Diamond drilling undertaken inFebruary 2005 was to test a geophysical anomaly with associated sulphide boulders containing up to 11 grams of gold per tonne of ore and 208 grams of silver per tonne of ore. Whilst the gold assay results have not yet beencompleted by the laboratory in Canada, the Competent Person's Report confirmsthat the mineralisation extends for at least 600 metres. The Skellefte mining district contains several large base metal and gold deposits, where mining has taken place since the 1920's. The third project area is at Ussalahti in the Kiruna mining district where theexploration rights owned by Beowulf cover approximately 9 square kilometres. The concessions were granted in January and February 2005 and are considered by the Directors to be prospective for copper and gold volcanogenic massive sulphide deposits.The interest in these Swedish project areas by Beowulf comes at a time whenworld commodity prices have been increasing in the face of rising demand from the newly-emerging industrial nations of China and India. Sweden, with favourable fiscal legislation for mining and exploration companies, isexperiencing a boom in exploration for metals. A number of the world's major mining companies are actively exploring or reappraising Sweden'sestablished mineral areas, as are several junior exploration companies.The Company's executive Directors have a proven track record of operating innorthern Sweden and believe that Beowulf enjoys good relations with the national and local mining authorities and is well regarded by the local populace. Directors Robert Douglas Young, BSc MSc PhD, (aged 60) - Executive ChairmanDr Young holds a first class honours degree in geology and chemistry, an MSc inMineral Exploration and a PhD in geochemistry. He has over 30 years of varied experience in the mining industry of Europe and South East Asia. Positions held include director of Minerex Limited (Ireland) between 1972 and 1977 and Chief Metals Geologist for Shell Minerals (Indonesia) between 1980 and 1984. Dr Young was the founding Managing Director of Cambridge Mineral Resources PLC, where he was a director between 1992 and 1997 and was a director of Angus & Ross PLC between 1999 and 2002, both of which he floated on Ofex and then moved to AIM. Jan-Ola Larsson, Fil.kand, PhD, DIC, (aged 63) - Technical DirectorDr Larsson holds a geology degree from Uppsala University and a PhD in geochemistry from The Royal School of Mines, Imperial College of Science and Technology, London University. He studied with Dr Young between 1968 and 1971. He has over 30 years experience of mining and mineral exploration in Canada, Brazil and Sweden. He has held positions with Barringer Research (Canada), Tetron Mineracao S/A (Brazil) LKAB Exploration (Sweden), North Star Diamonds AB (Sweden) and was Head of Geochemistry for the SGU. Anthony Charles Raby Scutt ACIS (aged 64) - Non-executive DirectorMr Scutt is a Chartered Secretary and a Certified Internal Auditor with the U.S.Institute of Internal Auditors. He has 34 years of financial management experience with Shell International Petroleum and has worked in many parts of the world, including the Malagasy Republic, East and Central Africa, South Vietnam, Singapore, the Philippines, Gabon, and latterly as the Chief Internal Auditor of Shell UK. He then went on to become an investment analyst, writer and investor, and was one of the very first investors in, and supporters of, Beowulf. He is also a non-executive director of Starvest plc. Edward Taylor (Aged 57) - Non-executive Director and Company SecretaryMr Taylor has worked in various accounting, human resources, administration andcompany secretary positions in the natural resources sector including for Hardy Oil and Gas, British Borneo Oil and Gas plc, LASMO (now AGIP (UK) plc and Angus & Ross PLC. Presently he has assignments for Yukos Services (UK) Ltd and EstelarResources PLC. This announcement is not for release, distribution or publication in whole or in part in or into the United States, Japan or Australia. The information contained herein does not constitute an offer of securities for sale in the United States, Canada, Japan or Australia. This announcement has been issued by the Company and is the sole responsibility of the Company and has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000 by Ruegg & Co Limited of 39 Cheval Place, London SW7 1EW. This announcement does not constitute or form part of an offer, or any solicitation of an offer, for securities and any purchase of shares in the Company should only be made on the basis of information contained in the Admission Document. The price and value of, and income from, shares may go down as well as up. Persons needing advice should consult a professional adviser. The information contained herein is not for publication or distribution in or into the United States. The materials do not constitute an offer of securities for sale in the United States, nor may the securities be offered or sold in the United States, nor may the securities be offered or sold in the United States absent registration or an exemption from registration as provided in the Securities Act of 1933, as amended, and the rules and regulations thereunder. There is no intention to register any portion of the offering in the United States or to conduct a public offering of securities in the United States. The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption of registration or qualification under the securities laws of any such jurisdiction. Ruegg & Co Limited ("Ruegg") is regulated in the United Kingdom by the Financial Services Authority and is acting solely for the Company in connection with Admission and no one else. Ruegg has been appointed as nominated adviser to the Company. Ruegg will not regard any other person as its client or be responsible to any other person for providing the protections afforded to clients of Ruegg nor for providing advice in relation to Admission. Ruegg is not making any representation or warranty, express or implied, as to the contents of this announcement. Ruegg accepts no liability whatsoever for the accuracy of any information or opinions expressed in this announcement or for the omission of any information. Phillip Securities (UK) Limited ("Phillip Securities") is regulated in the United Kingdom by the Financial Services Authority and is acting solely for the Company in connection with Admission and no one else. Phillip Securities has been appointed as broker to the Company. Phillip Securities will not regard any other person as its client or be responsible to any other person for providing the protections afforded to its clients nor for providing advice in relation to Admission. Phillip Securities is not making any representation or warranty, express or implied, as to the contents of this announcement. Phillip Securities accepts no liability whatsoever for the accuracy of any information or opinions contained in this announcement or for the omission of any information. 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