JOHANNESBURG (miningweekly.com) – Aim-listed mineral explorer Beowulf Mining, which is mainly focused on its Kallak iron-ore project, in Sweden, has added four early-stage graphite exploration projects located in Finland to its portfolio through the acquisition of exploration company Oy Fennoscandian Resources.

The transaction would be settled through 2.1-million Beowulf common shares and a deferred payment of 450 000 shares.

In addition, two equal tranches of shares would be issued on achievement of certain performance milestones.

The total number of ordinary shares that could be issued, if all performance milestones were achieved, was 6.75-million.

Through the acquisition, Beowulf would also enjoy greater exposure to the Fennoflake project, a collaborative group with partners representing the entire graphite value chain, from identification to exploration and mining, processing to end products and market applications.

“This will provide us with access to market insight and assist in the allocation of resources to projects that demonstrate the greatest commercial potential,” the company said in a statement.

All projects would be held by Fennoscandian under 100%-owned claim reservations and included Viistola – a potentially high-grade deposit anticipated to contain graphitic carbon (Cg) grading 20% to 35%; Haapamäki – a high-grade Cg project with attractive flake sizes; Piipumäki, which had shown evidence of high-quality graphite flakes with visible hexagonal growth; and Kolari, where a single diamond drill hole R1 intersected 170 m of mineralisation starting from surface, with an average grade of 8.9% Cg.

Beowulf CEO Kurt Budge outlined that, with graphite being a strategic mineral, declared supply-critical by both the US and the EU, and being an important ingredient in advanced technology manufacturing, Fennoscandian provided Beowulf with a jump-start into the graphite sector.

The company believed large flake graphite also held potential long-term growth in demand, particularly in the electric car battery, aerospace, sensor and solar industries.

Analysts at SP Angel said Beowulf’s move away from the iron-ore mining sector was not surprising given the current environment.

Meanwhile, Beowulf had also signed a memorandum of understanding with Oy Fennoscandian Investment Group, a Finnish company wholly owned by Fennoscandian founder Rasmus Blomqvist to evaluate nickel and polymetallic exploration assets across the Nordic region.

Blomqvist would also remain with the company as exploration manager.