The Company wishes to announce that it has agreed, subject to approval being given by shareholders at the forthcoming AGM to increase the authorised share capital of the Company, to authorise the directors of the Company to allot the newly created shares and waive pre-emption rights, to accept an investment of GBP500,000 from RAB Special Situations LP (""RAB Special Situations"") being a fund managed by RAB Capital plc.
In the opinion of the directors of the Company, RAB Special Situations is an important player within the investment community for small cap mining and exploration companies and the Company would welcome RAB Special Situations as a shareholder.
The terms of the investment are 11,111,111 shares at 4.5p per share. Each share purchased will come with one warrant attached, convertible into one new ordinary share and exercisable at 5.5p for a period of two years from date of issue.
The Directors of the Issuer accept responsibility for the content of this announcement.
For further information please contact;
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Gary Middleton
Matt Scuffam
St Swithin’s Public Relations
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+44 (0) 1353 649 701
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+44 (0) 207 429 4391
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Gavin Burnell
Ruegg & Co. Limited
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Nick Bealer
Phillip Securities (UK) Ltd
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+44-(0)207 584 3663
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+44-(0)207 553 8281
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NOTE: Beowulf has exclusive prospecting rights over 82 square kilometres in the Jokkmokk Region. Over these rights Phelps Dodge Exploration Sweden AB has signed a Joint Venture Agreement with Beowulf. Under its terms, Phelps Dodge will have the right to earn up to 80% (eighty per cent) ownership of any deposits by funding all exploration costs, including the cost of a full (""bankable"") feasibility on any deposit found. Following a decision to proceed to development Beowulf will have to fund its development costs to retain its interest, or revert to a 1.5% Net Smelter Return. Phelps Dodge Exploration Sweden AB is a subsidiary of the Phelps Dodge Corporation, one of the world''s leading producers of copper and molybdenum.
