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KDR Karelian Diamond Resources Plc

2.05
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Karelian Diamond Resources Plc LSE:KDR London Ordinary Share IE00BD09HK61 ORD EUR0.00025 (CDI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 2.05 2.00 2.10 2.15 2.05 2.15 2,642 08:00:04
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Misc Nonmtl Minrls, Ex Fuels 10k -291k 0.0000 N/A 149.68M

Karelian Diamond Res. Financing of £600,000

28/05/2021 12:03pm

UK Regulatory


 
TIDMKDR 
 
28 May 2021 
 
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF 
EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE 
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("EUWA")) ("UK MAR"). IN ADDITION, MARKET 
SOUNDINGS (AS DEFINED IN UK MAR) WERE TAKEN IN RESPECT OF CERTAIN OF THE 
MATTERS CONTAINED WITHIN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN 
PERSONS BECAME AWARE OF INSIDE INFORMATION (AS DEFINED UNDER UK MAR). UPON THE 
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THOSE 
PERSONS THAT RECEIVED INSIDE INFORMATION IN A MARKET SOUNDING ARE NO LONGER IN 
POSSESSION OF SUCH INSIDE INFORMATION, WHICH IS NOW CONSIDERED TO BE IN THE 
PUBLIC DOMAIN. 
 
                        Karelian Diamond Resources plc 
 
                    ("Karelian Diamonds" or the "Company") 
 
                             Financing of £600,000 
 
Karelian Diamond Resources plc (AIM: KDR), the diamond exploration company 
focused on Finland, is pleased to announce a placing and subscription to raise 
a total of £520,000 (before expenses) (the "Fundraising") in conjunction with 
the conversion of £80,000 of existing debt into new ordinary shares in the 
Company (the "Debt Capitalisation") for a total financing of £600,000 (the " 
Financing"). 
 
HIGHLIGHTS 
 
  * Karelian Diamonds has raised funds to conduct drilling at its 100% owned 
    Lahtojoki diamond deposit, investigate the prevalence of pink diamonds 
    discovered at site and, following new results released from its ongoing 
    diamond exploration programme in the Lahtojoki South exploration area, 
    continue work to identify other potentially diamondiferous kimberlite 
    structures in the vicinity. 
 
  * The Preliminary Economic Assessment ("PEA") of the Lahtojoki diamond 
    deposit, based on earlier data and details of which were announced by the 
    Company on 1 August 2017, stated the diamond deposit has 2.11 million 
    carats potentially recoverable with a gross value of US$211 million over a 
    9-year mine life, with a capital expenditure of US$22 million, resulting in 
    a Net Present Value (calculated using 8%) of US$39.1 million. 
 
  * The Karelian Craton (Baltic Shield) straddles Finland and Russia and is 
    larger in area than the diamond rich Canadian Slave Lake Craton. The 
    Company plans to also carry out geophysics at its second target district, 
    being the Kuhmo region of Eastern Finland, to continue to build evidence of 
    further diamond deposits. 
 
  * The work planned at the primary Lahtojoki deposit is intended to elevate it 
    to test mining stage (bulk sampling) in the lead up to the anticipated 
    granting of its mining permit which is currently in the final stages of the 
    formal approval process. 
 
FINANCING SUMMARY 
 
The Financing was arranged at 4 pence per share (the "Issue Price"), 
representing a discount of 11 per cent. to the closing bid price of 4.5 pence 
on 27 May 2021. 
 
  * Placing and subscription of 13,000,000 ordinary shares of ?0.00025 each (" 
    Ordinary Shares") at a price of 4 pence per Ordinary Share to raise £ 
    520,000 before expenses (the "Financing Shares"). 
 
  * In conjunction with the Fundraising certain parties, including Professor 
    Richard Conroy (Chairman of the Company) and Maureen Jones (Managing 
    Director of the Company), have also capitalised amounts owed to them 
    totalling £80,000 through the issue of 2,000,000 new Ordinary Shares at the 
    Issue Price (the "Debt Capitalisation Shares"). 
 
  * The Financing increases the Company's exploration capacity and strengthens 
    its working capital position. 
 
  * Each Financing Share and Debt Capitalisation Share carries a warrant to 
    subscribe for one new Ordinary Share at a price of 8 pence per Ordinary 
    Share exercisable for a period of 30 months from the admission to trading 
    on AIM of the Financing Shares and the Debt Capitalisation Shares (" 
    Admission"), creating 15,000,000 Financing Warrants. 
 
  * The Fundraising has been arranged by the Company's broker, First Equity 
    Limited, who will be issued with 1,250,000 Financing Warrants. 
 
  * Should all the above Financing Warrants be exercised on or before 9 
    December 2023, this would generate an additional £1,300,000 of funding for 
    the Company over and above the amount secured through this Financing. There 
    can be no guarantee that any warrants will be exercised in the future and 
    that additional proceeds will be received by the Company. 
 
  * The Financing Shares will represent approximately 19.0 per cent. of the 
    enlarged issued share capital of the Company and has been issued to a 
    combination of mainly new investors and certain existing shareholders. The 
    Financing comprises 12,250,000 new Ordinary Shares to be issued to 
    investors pursuant to a placing arranged by First Equity Limited and 
    750,000 new Ordinary Shares to be issued to certain existing shareholders 
    pursuant to a subscription with the Company. 
 
  * The Debt Capitalisation Shares will represent approximately 2.9 per cent. 
    of the enlarged issued share capital of the Company. 
 
  * The Financing has been conducted within the Company's existing share 
    authorities and is conditional on admission of the Financing Shares and the 
    Debt Capitalisation Shares to trading on AIM becoming effective. 
 
Professor Richard Conroy, Chairman, commented: "I am delighted with the success 
of the fundraising which comes as we look to receive a full Mining Permit for 
our Lahtojoki diamond deposit, with its exciting potential for pink diamonds, 
and also progress with our promising diamond exploration programme both around 
Lahtojoki and in the known diamondiferous Kuhmo region of Finland". 
 
DEBT CAPITALISATION 
 
In conjunction with the Financing and conditional on Admission, Professor 
Richard Conroy (Chairman of the Company) and Maureen Jones (Managing Director 
of the Company), have capitalised amounts owed to them totalling £80,000. The 
debts will be satisfied through the issue by the Company of a total of 
2,000,000 Debt Capitalisation Shares. The Debt Capitalisation Shares will have 
Financing Warrants attached. 
 
Professor Richard Conroy is capitalising a total of £74,000 into 1,850,000 Debt 
Capitalisation Shares at the Issue Price and will be issued with 1,850,000 
Financing Warrants. Upon completion of the Financing, Professor Richard Conroy 
will be interested in 10,263,912 Ordinary Shares equivalent to 14.97% of the 
enlarged issued share capital of the Company and 1,850,000 Financing Warrants. 
The interest of Professor Conroy comprises 9,031,311 Ordinary Shares held in 
his own name and 1,232,601 Ordinary Shares held by Conroy PLC, a company in 
which Professor Conroy has a controlling interest. 
 
Maureen Jones is capitalising a total of £6,000 into 150,000 Debt 
Capitalisation Shares at the Issue Price and will be issued with 150,000 
Financing Warrants. Upon completion of the Financing, Maureen Jones will be 
interested in 789,990 Ordinary Shares equivalent to 1.15% of the enlarged 
issued share capital of the Company and 150,000 Financing Warrants. 
 
RELATED PARTY TRANSACTIONS 
 
Professor Richard Conroy, a director of the Company and therefore a related 
party of the Company for the purposes of the AIM Rules for Companies, has 
participated in the Debt Capitalisation and is being issued with 1,850,000 Debt 
Capitalisation Shares at the Issue Price and 1,850,000 Financing Warrants. The 
participation by Professor Richard Conroy in the Debt Capitalisation is deemed 
to be a related party transaction pursuant to rule 13 of the AIM Rules for 
Companies. 
 
Maureen Jones, a director of the Company and therefore a related party of the 
Company for the purposes of the AIM Rules for Companies, has participated in 
the Debt Capitalisation and is being issued with 150,000 Debt Capitalisation 
Shares at the Issue Price and 150,000 Financing Warrants. The participation by 
Maureen Jones in the Debt Capitalisation is deemed to be a related party 
transaction pursuant to rule 13 of the AIM Rules for Companies. 
 
The Independent Directors of the Company for the purposes of the Financing 
(being Seamus Fitzpatrick, Dr Sor?a Conroy, Brendan McMorrow and Howard Bird) 
consider, having consulted with the Company's nominated adviser, Allenby 
Capital Limited, that the terms of the related party transactions are fair and 
reasonable insofar as the Company's shareholders are concerned. 
 
ADMISSION, WARRANTS AND TOTAL VOTING RIGHTS 
 
The issue of the Financing Shares, the Debt Capitalisation Shares and the 
possible issue of new Ordinary Shares from the exercise of the Financing 
Warrants, will be undertaken pursuant to the Company's existing share 
authorities. 
 
An application will be made shortly to the London Stock Exchange for Admission 
of the Financing Shares and the Debt Capitalisation Shares. It is expected that 
Admission will become effective and that dealings in the Financing Shares and 
the Debt Capitalisation Shares on AIM will commence on or around 9 June 2021. 
The Ordinary Shares now settle as CREST Depository Interests ("CDI"). 
 
First Equity Limited will be issued with 1,250,000 Financing Warrants as part 
of their role in arranging the Fundraising. These Financing Warrants will be on 
the same terms as the Financing Warrants issued pursuant to the Fundraising and 
Debt Capitalisation. 
 
Upon completion of the Financing, there will be a total of 16,250,000 Financing 
Warrants in issue. 
 
The Financing Warrants will not be admitted to trading on AIM or any other 
stock market and will not be transferable. The issuance of the Warrants is 
subject to Admission. 
 
In accordance with the FCA's Disclosure Guidance and Transparency Rules, the 
Company confirms that on completion of the Financing and the Debt 
Capitalisation, and following Admission, the Company's enlarged issued ordinary 
share capital will comprise 68,542,749 Ordinary Shares. 
 
The Company does not hold any Ordinary Shares in Treasury.  Therefore, 
following Admission, the above figure may be used by shareholders in the 
Company as the denominator for the calculations to determine if they are 
required to notify their interest in, or a change to their interest in the 
Company, under the FCA's Disclosure Guidance and Transparency Rules. 
 
Further information is available through the Company's website: 
www.kareliandiamondresources.com 
 
For further information please contact: 
 
Further information: 
 
Karelian Diamond Resources plc 
Professor Richard Conroy, Chairman                         +353-1-479-6180 
 
Allenby Capital Limited (Nomad) 
Nick Athanas / Nick Harriss                                +44-20-3328-5656 
 
First Equity Limited (Broker) 
Jason Robertson                                            +44-20-7330-1883 
 
Lothbury Financial Services 
Michael Padley                                             +44-20-3290-0707 
 
Hall Communications 
Don Hall                                                   +353-1-660-9377 
 
http://www.kareliandiamondresources.com 
 
 
 
END 
 
 

(END) Dow Jones Newswires

May 28, 2021 07:03 ET (11:03 GMT)

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