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Beowulf Mining

  • BY: Andrew Hore |
  • POSTED: 10/07/2013 |

Beowulf Mining is the latest Aim company to enter into an equity swap agreement.

Unlike Quindell, Beowulf has been upfront about everything and given a thorough explanation.

Beowulf is raising £4.125m at 6.25p a share, of which £4m is subject to the equity swap with Lanstead. The shares relating to the equity swap will be issued in 24 monthly tranches of 2,667,000 shares. Lanstead is also being issued 6.4m shares in return for the agreement. Lanstead will end up with 24.9% of Beowulf’s share capital.

The benchmark price has been set at 8.33p a share. If the company’s share price is higher than that benchmark then Beowulf will receive more than the £167,000 expected at the 6.25p placing price. If the share price is less then Beowulf will receive less.

At 6.5p a share, down 0.5p, Beowulf is valued at £15.7m. If the share price were to stay at this level then £130,000 would be raised in the first month.

Beowulf requires £800,000 for working capital. Beowulf also needs cash to finance the 3,000m of drilling at its Ballek copper-gold joint venture project and to invest in its Kallak iron ore project, where test mining has commenced.

Beowulf hopes that positive news from this work will boost the share price and help to raise additional cash.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2013_46.pdf

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