Beowulf Mining warns on funding as regulator probes Bacchus deal

Beowulf Mining PLC late Thursday announced that the Swedish Inspectorate of Strategic Products is reviewing its proposed investment from Bacchus Capital & Affiliates.

Shares in Beowulf plummeted 37% to 6.95 pence each on Friday in London.

The iron ore, graphite, gold and base metals explorer and developer said the ISP has informed Bacchus of its decision to initiate a review of the latter's proposed strategic investment in Beowulf.

Beowulf announced in June that Bacchus had agreed to invest £3.7 million as part of a total proposed £4.3 million financing. The deal remains subject to Swedish Foreign Direct Investment approval.

The miner said on Thursday that the ISP has three months in which to approve the investment, but noted that this can be extended to six months in "special cases".

Beowulf, which is targeting assets in Sweden, Finland and Kosovo, noted that the current long stop date for the £4.3 million financing is September 30. The same deadline applies for its settlement agreement with Alumni Capital. Back in December, Alumni agreed to subscribe for £500,000 in unsecured convertible loan notes. Beowulf also granted Alumni warrants to subscribe for 4.3 million shares.

Beowulf said that in light of the review, all parties will need to agree on an extension of the long stop date. However, it cautioned that while Bacchus "remains supportive," an extension is not guaranteed.

Beowulf added that it "has been managing its cash position for an extended period of time".

Since the start of 2026, this has included the deferring of invoices from suppliers, contractors, consultants and advisers, with senior management and the board also deferring their fees and salaries.

"The company is grateful for the patience shown by our service providers and suppliers to date and hopes to be able to provide greater clarity on the timing of the [Swedish Foreign Direct Investment] approval process in the near term," it said.

Nonetheless, it said the implications of the approval process being further delayed are "significant". Both Beowulf and Bacchus "are seeking clarification from the ISP of its decision and the timing implications," it added.

Looking ahead, Beowulf warned that it "will need to secure additional financing within the next month in order to provide working capital for its operations".

"Bacchus Capital continues to engage with the company as it, with support from its advisers, seeks an interim funding solution," the firm continued.

Copyright 2026 Alliance News Ltd. All Rights Reserved.