Beowulf said on Monday it would double its holding in the company to 31.3% and raise £750,000 at 5.5p, a 21% discount to the previous closing price.
The announcement sent its share price down 14% to 6p.
CEO Kurt Budge said the capital raise was needed to keep the company's diversification plan going as it struggles to get a licence for its iron ore project in Sweden.
"Given the current adverse market conditions affecting the junior mining sector and the uncertainty surrounding Brexit, I am pleased to have completed the subscription which helps maintain our strong cash position and enables us to keep investing across our business areas," he said.
"Kallak is a quality asset and its value has enabled us to successfully raise modest amounts of funding over recent years, which we have used to maintain our commitment to Kallak and broaden our exploration activities with graphite in Finland and, more recently, base metals and precious metals in Kosovo."
Vardar is exploring for base metals, gold and lithium in Kosovo.