Karelian Diamond Res. PLC Placing to Raise GBP250,000

 
TIDMKDR 
 
17 May 2016 
 
                          KARELIAN DIAMOND RESOURCES 
 
                          STRATEGIC FINANCING UPDATE 
 
                     Placing to raise GBP250,000 (EUR317,000) 
 
* Placing of 31,250,000 new ordinary shares at 0.8 pence per share together 
with 31,250,000 warrants to raise GBP250,000 (EUR317,000) before expenses 
 
* Proceeds of the placing to be applied to fund the advancement of the 
Company's principal diamond opportunities and in particular the recently 
acquired Lahtojoki Diamond Project and for working capital generally 
 
Karelian Diamond Resources plc (AIM: KDR, ESM: KDRI), the diamond exploration 
company focused on Finland, is pleased to announce that it has conditionally 
raised GBP250,000 (EUR317,000), prior to expenses, through a placing (the 
"Placing") of 31,250,000 ordinary shares of EUR0.01 in the capital of the Company 
(the "Placing Shares") and 31,250,000 warrants at an exercise price of 1.6 
pence per warrant (the "Warrants"), together the "Placing Units", at a price of 
0.8 pence per Placing Unit (the "Placing Price") being a premium of 2.56 per 
cent. to the closing mid-market-price on 16 May 2016 (being the last 
practicable date prior to the completion of the Placing). 
 
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 EUR0.01 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 admission of the Placing Shares being 24 May 
2018. The Warrants also contain a mandatory exercise clause if the closing 
price of the Ordinary Shares remains at 5p pence or higher for 10 or more 
consecutive business days. 
 
The Company intends to use the proceeds of the Placing to fund the advancement 
of the Company's principal diamond opportunities and in particular the 
Lahtojoki Diamond Project, the acquisition of which was announced on 19th April 
2016 and for working capital generally. 
 
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 24 May 2016. 
 
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 317,785,034 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. 
 
Professor Richard Conroy, Chairman, Karelian Diamond Resources plc commented: 
 
"We are pleased to announce this strategic placing which provides the funds to 
enable the Company to step up its activities. We were particularly delighted to 
succeed in the acquisition of the Lahtojoki Diamond Project as announced 
recently. With the funds raised we can start to demonstrate the potential this 
project has to offer and also further the work at Riihivaara where the Company 
has discovered a potential new diamond source". 
 
Further Information: 
 
Professor Richard Conroy, Chairman, Karelian        Tel: [phone] 
Diamond Resources plc 
 
Virginia Bull / James Thomas, Allenby Capital       Tel: [phone] 
Limited (Nomad) 
 
Ger Heffernan, IBI Corporate Finance Limited (ESM   Tel: [phone] 
Adviser) 
 
Jon Belliss/Elliot Hance, Beaufort Securities       Tel: [phone] 
Limited (Broker) 
 
Michael Padley, Lothbury Financial Services Limited Tel: [phone] 
 
Don Hall, Hall Communications                       Tel: [phone] 
 
http://www.kareliandiamondresources.com 
 
 
 
END 
 

(END) Dow Jones Newswires

May 17, 2016 07:03 ET (11:03 GMT)