Beowulf Mining Buys Iron of Sweden From Tasman Metals

12th Jul 2010 07:46

LONDON (Dow Jones)--Beowulf Mining PLC (BEM.LN), a mineral exploration company, said Monday it entered into an agreement with Tasman Metals Ltd (TSX.V: TSM) to acquire its wholly owned U.K. subsidiary, Iron of Sweden Ltd, for C$40,000 and added that half of the drilling program on its wholly-owned Kallak Iron Ore deposit, located within the municipality of Jokkmokk in northern Sweden, has now been completed. MAIN FACTS: -The acquisition consideration will be satisfied by the allotment of 691,921 new ordinary shares of 1p each in Beowulf at a deemed price of 3.7p per share; Tasman has agreed not to trade the consideration shares for a period of 12 months following their date of issue. -In addition, Tasman will retain a 1.5% Net Smelter Royalty on any future production in the three permit areas. -Under the acquisition of Iron of Sweden, Beowulf will acquire two permits just south of Kallak and one in the Kiruna region which will be transferred by Tasman to Iron of Sweden; Iron of Sweden Ltd will shortly own, subject to Swedish regulatory approval, certain permits to the south of Beowulf's Kallak project. -The Kallak drill program comprises a grid pattern of 35 holes, totalling 3,500 meters of drilling covering the entire deposit which, from ground magnetic surveys, has been defined as being up to 300 meters wide and extending more than 1,000 meters. -The drilling program is expected to be completed by the end of July 2010 with all analytical testing completed during September 2010. -Shares on Beowulf in pre-market trading up 0.25 pence or 6.9%, at 3.9 pence, valuing the company at GBP5.7 million. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, [email protected] (END) Dow Jones Newswires July 12, 2010 02:46 ET (06:46 GMT)