Karelian Diamond Res. PLC Placing to Raise GBP250,000
17 May 2016 - 9:03PM
UK Regulatory
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: +353-1-661-8958
Diamond Resources plc
Virginia Bull / James Thomas, Allenby Capital Tel: +44-20-3328-5656
Limited (Nomad)
Ger Heffernan, IBI Corporate Finance Limited (ESM Tel: +353-7662-34800
Adviser)
Jon Belliss/Elliot Hance, Beaufort Securities Tel: +44-20-7382-8300
Limited (Broker)
Michael Padley, Lothbury Financial Services Limited Tel: +44-20-3290-0707
Don Hall, Hall Communications Tel: +353-1-660-9377
http://www.kareliandiamondresources.com
END
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