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The dwarf, incensed at losing the treasure, pronounced a most dreadful curse upon it and its possessors, saying that it would be the death of those who should get hold of it. Thus Hreithmar, its first owner, was slain in his sleep by his son Fafnir, who carried the treasure away to the Gnita Heath, where, having taken the form of a dragon, he guarded it.

So strong was, in Scandinavia, the tradition of the Teutonic origin of the tale, down to the twelfth century, that, in a geographical work written in Norse by the Abbot Nicolaus, the Gnita Heath, where Sigurd was said to have killed the Dragon, was still placed half-way between Paderborn and Mainz. Thus it was from Germany that this grand saga spread all over the North, including the Faröer.

Andwari pronounces a terrible curse upon the treasure and its possessors, and this curse passes from Loki to the Giant Hreithmar, who is murdered when asleep by his two sons "Fafnir" and "Regin". The latter, however, is cheated out of the coveted prize by Fafnir, who carries it away to the "Gnita" heath, where he guards it in the form of a dragon.

And having come as far as those hills he bade his men return to King Alv's hall with the spoils he had won. They went, and Sigurd stayed upon the hills and looked across Gnita Heath to where Fafnir the Dragon had his lair. All blasted and wasted was the Heath with the fiery breath of the Dragon. And he saw the cave where Fafnir abode, and he saw the track that his comings and goings made.

If thou dost ride to the crest of the hills thou mayst look across to the desolate land where Fafnir has his haunt. Know that once it was fair land where men had peace and prosperity, but Fafnir came and made his den in a cave near by, and his breathings as he went to and came from the River withered up the land and made it the barren waste that men called Gnita Heath.