The company will issue 30 million new ordinary shares at a price of 5p per share, bringing its total ordinary shares in issue up to 566.3 million at 1p each. It said it had applied to admit the subscription shares to trading on AIM on or around May 18.

The subscription price was down 23% from a year ago when it issued 23.1 million shares at 6.5p each to raise the same amount. 

The funds will be used specifically for a scoping study on the Aitolampi graphite project in Finland, drilling at Åtvidaberg, exploration and development work at Kallak and surrounding exploration licenses.

Beowulf CEO Kurt Budge said it was disappointing that the funds were being raised at a lower price, due to further delays in the Kallak permitting process in Sweden, but on the upside, the fundraising would maintain its strong cash position and enable the company to keep investing and developing projects across its business areas.

He said the Kallak permit application had met all requirements in the prescribed process, in accordance with the Minerals Act and the Environmental Code, and in compliance with Swedish law, with additional studies and a heritage impact assessment also submitted, although the upcoming general elections in Sweden could further delay the exploitation concession decision.

"We have invested SK77 million (US$8.8 million) in Kallak, a project that has the potential to positively transform Jokkmokk, and our commitment is firm to the responsible development of a modern, sustainable, and innovative mining operation in partnership with the local community", Budge said.

Cantor Fitzgerald Europe director of metals & mining research Asa Bridle said the subscription left Beowulf "well-financed to continue the exploration and development work on its property portfolio in 2018".

He left the company's 6.6p target price and recommendation under review until there was greater clarity on the Kallak project.

Beowulf's shares were trading at 5.4p Wednesday, down 18.18% from the previous close.