Karelian Diamond Res. Issue of Equity

 
TIDMKDR 
 
This announcement contains inside information for the purposes of Article 7 of 
the Market Abuse Regulation (EU) No 596/2014. With the publication of this 
announcement via a Regulatory Information Service ("RIS"), this inside 
information is now considered to be in the public domain. 
 
                                                                  12 April 2017 
 
                Karelian Diamond Resources plc (the "Company") 
 
                                CAPITAL RAISING 
 
                              TOTAL VOTING RIGHTS 
 
                     Placing to raise GBP775,000 (EUR914,500) 
 
*          Placing of 172,222,220 new ordinary shares at 0.45 pence per share 
together with 57,407,408 warrants to raise GBP775,000 (EUR914,500) before expenses 
and issue of 22,222,223 Broker Warrants 
 
*          Proceeds of the placing to be applied to fund the advancement of the 
Company's principal diamond opportunities and in particular the Lahtojoki 
Diamond Project, its exploration at Riihivaara and for working capital 
 
Karelian Diamond Resources plc (AIM: KDR, ESM: KDRI), the diamond exploration 
company focused on Finland, is pleased to announce that it has conditionally 
raised GBP775,000 (ca.EUR915,000), prior to expenses, through a placing (the 
"Placing") of 172,222,220 ordinary shares of EUR0.00001 in the capital of the 
Company (the "Placing Shares") and 57,407,408 warrants all at an exercise price 
of 0.80 pence per warrant (the "Warrants"), together the "Placing Units", at a 
price of 0.45 pence per Placing Unit (the "Placing Price"). 
 
The Placing is conditional, inter alia, on admission of the Placing Shares to 
trading on AIM and the Enterprise Securities Market operated by the Irish Stock 
Exchange Limited ("ESM").  The Placing Shares will rank pari passu with the 
existing issued ordinary shares of EUR0.00001 in the capital of the Company 
("Ordinary Shares"). 
 
The Warrants can be exercised at any time from admission of the Placing Shares 
to the second anniversary of the anticipated admission of the Placing Shares, 
being 28 April 2019. 
 
Following the recent discovery of a diamond in a till sample, the Company 
intends to use the proceeds of the Placing to fund the further advancement of 
the Company's principal diamond opportunities and in particular the recently 
acquired Lahtojoki Diamond Project, its exploration at Riihivaara where the 
Company has discovered a potential new diamond source and for working capital 
generally. 
 
As part of the Placing, certain of the Directors have subscribed for an 
aggregate of 38,888,880 Placing Units, consisting of 38,888,880 Placing Shares 
and 12,962,960 Warrants. The Directors' participation in the Placing and their 
resultant shareholding following admission of the Placing Shares to trading 
("Admission") is as follows: 
 
                                   Placing                  Percentage 
                                    Shares                 interest in 
                       Placing  subscribed     Resultant  the enlarged    Warrants 
Director         participation         for  Shareholding  issued share    received 
                                                               capital 
 
                             GBP         No.           No.                       No. 
 
Professor 
Richard Conroy*        125,000  27,777,770   119,583,938         20.46   9,259,257 
 
Maureen Jones           27,500   6,111,110    13,221,985          2.26   2,037,037 
 
James P. Jones          22,500   5,000,000     9,481,539          1.62   1,666,666 
 
                       175,000  38,888,880   142,287,462         24.34  12,962,960 
 
* Of the 119,583,938 Ordinary Shares beneficially held by Professor Richard 
Conroy, 30,815,030 are held by Conroy Plc a company in which Professor Conroy 
has a controlling interest. 
 
The participation of Professor Richard Conroy, Maureen Jones and James P Jones 
in the Placing is a related party transaction pursuant to Rule 13 of the AIM 
Rules for Companies. The independent directors of the Company (being Séamus 
FitzPatrick, Louis Maguire, and Sor?a Conroy), having consulted with the 
Company's Nominated Adviser and ESM adviser, consider the terms of the Placing 
to be fair and reasonable insofar as the Shareholders are concerned. 
 
Application has been made to AIM and ESM for the Placing Shares to be admitted 
to trading.  It is expected that admission will become effective on 28 April 
2017. 
 
Following the issue of the Placing Shares, and for the purposes of the 
Disclosure and Transparency Rules, the Company's total issued share capital on 
Admission will consist of 584,451,698 Ordinary Shares. 
 
The above figure may be used by shareholders as the denominator for the 
calculations by which they will determine if they are required to notify their 
interest in, or a change to their interest in, the Company, under the 
Disclosure and Transparency Rules. 
 
In conjunction with the Placing the Company is issuing 22,222,223 Broker 
Warrants, also exercisable at 0.80 pence per warrant until 28 April 2019, to 
Beaufort Securities. 
 
Professor Richard Conroy, Chairman, Karelian Diamond Resources plc commented: 
 
"This placing, with the promise of more to come via the warrants, will allow us 
to do follow-up work on our diamond discovery in Kuhmo, an extremely rare and 
positive event.  It will also allow us to do further work at the Lahtojoki 
diamond deposit where we have a Mining Permit, as well as on the Riihivaara 
Kimberlite Body, which we discovered. With the funds raised we now look to 
build on these successes." 
 
Further Information: 
 
Professor Richard Conroy, Chairman, Karelian Diamond            Tel: 
Resources plc                                         [phone] 
 
Virginia Bull/James Thomas/Nick Harriss, Allenby                Tel: 
Capital Limited (Nomad)                               [phone] 
 
Ger Heffernan/Jan Fitzell, IBI Corporate Finance                Tel: 
Limited (ESM Adviser)                                 [phone] 
 
Jon Belliss/Elliot Hance, Beaufort Securities Limited           Tel: 
(Broker)                                              [phone] 
 
Michael Padley, Lothbury Financial Services Limited             Tel: 
                                                      [phone] 
 
Don Hall, Hall Communications                                   Tel: 
                                                      [phone] 
 
http://www.kareliandiamondresources.com 
 
This announcement contains inside information for the purposes of Article 7 of 
the Market Abuse Regulation (EU) No 596/2014. The information set out below is 
provided in accordance with the requirements of Article 19(3) of that 
Regulation. 
 
1   Details of the person discharging managerial responsibilities/person 
    closely  associated 
 
a)  Name                            Professor Richard Thomas Walter 
                                    Lawrence Conroy 
 
2   Reason for the notification 
 
a)  Position/status                  Director of the Company 
 
b)  Initial notification /Amendment  Initial notification 
 
3   Details of the issuer, emission allowance market participant, auction 
    platform, auctioneer or auction monitor 
 
a)  Name                            Karelian Diamond Resources plc 
 
b)  LEI                             N/A 
 
4   Details of the transaction(s):  section  to be repeated for  (i) 
    each type of instrument; (ii) each type of transaction;  (iii) 
    each date;  and  (iv) each place where transactions have been conducted 
 
a)  Description of the financial    Ordinary Shares of EUR0.00001 each 
    instrument, type of instrument  ("Ordinary Shares") 
 
 
 
    Identification code             ISIN for Karelian Diamond Resources plc 
                                    Ordinary Shares: 
                                    IE00B01ZSK94 
 
b)  Nature of the transaction       Purchase of shares via a placing 
 
c)  Price(s) and volume(s)          Price - 0.45 pence per ordinary share 
                                    Volume - 27,777,770 Ordinary Shares 
 
d)  Aggregated information          N/A 
    - Aggregated volume 
    - Price 
 
e)  Date of the transaction         28 April 2017 
 
f)  Place of the transaction        Outside a trading venue 
 
 
 
1   Details of the person discharging managerial responsibilities/person 
    closely  associated 
 
a)  Name                            Maureen Theresa Anne Jones 
 
2   Reason for the notification 
 
a)  Position/status                  Director of the Company 
 
b)  Initial notification /Amendment  Initial notification 
 
3   Details of the issuer, emission allowance market participant, auction 
    platform, auctioneer or auction monitor 
 
a)  Name                            Karelian Diamond Resources plc 
 
b)  LEI                             N/A 
 
4   Details of the transaction(s):  section  to be repeated for  (i) 
    each type of instrument; (ii) each type of transaction;  (iii) 
    each date;  and  (iv) each place where transactions have been conducted 
 
a)  Description of the financial    Ordinary Shares of EUR0.00001 each 
    instrument, type of instrument  ("Ordinary Shares") 
 
 
 
    Identification code             ISIN for Karelian Diamond Resources plc 
                                    Ordinary Shares: 
                                    IE00B01ZSK94 
 
b)  Nature of the transaction       Purchase of shares via a placing 
 
c)  Price(s) and volume(s)          Price - 0.45 pence per ordinary share 
                                    Volume - 6,111,110 Ordinary Shares 
 
d)  Aggregated information          N/A 
    - Aggregated volume 
    - Price 
 
e)  Date of the transaction         28 April 2017 
 
f)  Place of the transaction        Outside a trading venue 
 
 
 
1   Details of the person discharging managerial responsibilities/person 
    closely  associated 
 
a)  Name                             James ("Jim") Patrick Jones 
 
2   Reason for the notification 
 
a)  Position/status                  Director of the Company 
 

b)  Initial notification /Amendment  Initial notification 
 
3   Details of the issuer, emission allowance market participant, auction 
    platform, auctioneer or auction monitor 
 
a)  Name                            Karelian Diamond Resources plc 
 
b)  LEI                             N/A 
 
4   Details of the transaction(s):  section  to be repeated for  (i) 
    each type of instrument; (ii) each type of transaction;  (iii) 
    each date;  and  (iv) each place where transactions have been conducted 
 
a)  Description of the financial    Ordinary Shares of EUR0.00001 each 
    instrument, type of instrument  ("Ordinary Shares") 
 
 
 
    Identification code             ISIN for Karelian Diamond Resources plc 
                                    Ordinary Shares: 
                                    IE00B01ZSK94 
 
b)  Nature of the transaction       Purchase of shares via a placing 
 
c)  Price(s) and volume(s)          Price - 0.45 pence per ordinary share 
                                    Volume - 5,000,000 Ordinary Shares 
 
d)  Aggregated information          N/A 
    - Aggregated volume 
    - Price 
 
e)  Date of the transaction         28 April 2017 
 
f)  Place of the transaction        Outside a trading venue 
 
 
 
END 
 

(END) Dow Jones Newswires

April 12, 2017 11:34 ET (15:34 GMT)