Beowulf Mining PLC
01 June 2007
BEOWULF MINING PLC
PRESS RELEASE
OPTION AND EARN-IN AGREEMENT
ON BALLEK EXPLORATION PERMITS, NORTHERN SWEDEN
1 June 2007
The directors of Beowulf Mining PLC ('Beowulf') the AIM listed
copper, gold and uranium explorer, are pleased to report the signing of an
option and earn-in agreement on the Ballek 2, 3, 4 and 5 exploration permits
that cover 110 square kilometres of Arjeplog County of Northern Sweden.
Agricola Resources PLC ('Agricola') has been granted an option to
acquire a 51% interest in the licences by undertaking magneto telluric, induced
polarisation and resistivity surveys, followed by 3,000 metres of diamond
drilling. Agricola has agreed to conduct the programme by 31 December 2008.
The surveys are intended to identify targets associated with the gravity anomaly
under the claim block, and to identify any iron oxide copper gold (IOCG)
deposits that may be present in the Ballek area.
It is intended that Beowulf will incorporate a new subsidiary company to hold
the Ballek exploration permits and that, following completion of the agreed work
programme, Agricola will be given a 51% shareholding in this company. By
spending an additional US$500,000 Agricola can increase its interest in the
Ballek licences to 70%.
Subsequent expenditure on the Ballek exploration permits will be made pro rata
to Beowulf and Agricola's respective interests, subject to adjustment in the
event that one party chooses not to fund their proportion of such expenditure.
Agricola Resources PLC (www.agricolaesources.com) is a company engaged in
uranium exploration and development. The Company has registered claims for 137
sq. km. in Sweden called Manakjaure 1 and Geddaur 1, 2 and 3 claims. In Finland
Agricola has applied for contiguous exploration claims Kuuajaervi 1, 2 and 3.
They are located around the Paukkajavaara uranium area in Eno county, Eastern
Karelia.
Agricola Resources PLC (www.agricolaresources.com) is a public company whose
shares are traded on the PLUS Market. It recently raised £467,800 in exploration
finance. This later investment in Agricola was made by Energy Ventures Limited
(ASX: EVE), a Perth based company listed on the ASX Australian Stock Exchange.
EVE will give technical backing to Agricola.
This agreement enables Beowulf to advance its projects whilst maintaining its
existing cash resources.
Agricola's shares are traded on the PLUS Market and it is a related party to
Beowulf under the AIM Rules since R Young, J O Larsson and A C R Scutt, who are
directors of Beowulf are also directors of Agricola.
Because the above agreement constitutes a related party transaction for the
purposes of the AIM Rules, the Independent Director of Beowulf - Ed Taylor
considers, having consulted with the Company's Nominated Adviser, Ruegg & Co
Limited, that the terms of the agreement are fair and reasonable insofar as the
Company's shareholders were concerned.
For further information contact :
Dr Robert Young, Beowulf Mining plc Tel. +44 (0) 1353 649 701
Mr Gavin Burnell, Ruegg & Co Limited Tel. +44 (0) 207 584 3663
Mr Gary Middleton, St. Swithins PR Tel. +44 (0) 207 929 4391
Mr. Nick Bealer, King & Shaxson Tel. +44 (0) 207 426 5986
This information is provided by RNS
The company news service from the London Stock Exchange