Karelian Diamond Resources Plc Fundraising and Appointment of Broker
20 October 2023 - 11:44PM
UK Regulatory
TIDMKDR
PRIOR TO PUBLICATION, THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT WAS
DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF
REGULATION 11 OF THE MARKET ABUSE (AMMENT) (EU EXIT) REGULATIONS 2019/310.
WITH THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INFORMATION IS NOW CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
20 October 2023
[Description: Description: Karelian]
Karelian Diamond Resources plc
("Karelian Diamonds" or the "Company")
Fundraising of £250,000 and appointment of broker
Karelian Diamond Resources plc (AIM: KDR), the Irish mineral resource
exploration company which has active exploration programmes for Nickel-Copper
-Platinum Group metals in Northern Ireland and for diamonds in the Kuhmo region
of Finland in addition to its diamond deposit at Lahtojoki in Finland, is
pleased to announce a placing to raise a total of £250,000 (before expenses)
(the "Fundraising").
HIGHLIGHTS
· Karelian Diamonds has raised funds to carry out a follow-up exploration
programme for Nickel-Copper-Platinum Group metals in Northern Ireland
· Funds will also be used by the Company to continue its ongoing diamond
exploration programme at Kuhmo in Finland and to prepare for the next phase of
work at its Lahtojoki diamond deposit in addition to strengthening its working
capital position
· Certain directors of the Company have subscribed for, in aggregate, £100,000
in the Fundraising at the Issue Price
Professor Richard Conroy, Chairman, commented:
"I welcome the completion of this fundraising which comes at an exciting time
for the Company. We have only recently reported highly encouraging results from
our Nickel Copper Platinum Group metals exploration programme and are now
looking forward to carrying out the next phase of this exploration in Northern
Ireland. We also await with interest the results of the initial phase of our
excavation and drilling diamond exploration programme in the Kuhmo region of
Finland."
FUNDRAISING SUMMARY
The Fundraising was arranged at 2.5 pence per ordinary share (the "Issue
Price"), representing a discount of 33.3 per cent. to the closing mid-market
price of 3.75 pence on 19 October 2023.
The Fundraising has been arranged by Peterhouse Capital Limited who have been
appointed as sole broker to the Company with immediate effect.
Placing of 10,000,000 ordinary shares of ?0.00025 each ("Ordinary Shares") at a
price of 2.5 pence per Ordinary Share to raise £250,000 before expenses (the
"Fundraising Shares").
Each Fundraising Share carries a warrant to subscribe for one new Ordinary Share
at a price of 4 pence per Ordinary Share exercisable for a period of 12 months
from the admission to trading on AIM of the Fundraising Shares ("Admission"),
creating 10,000,000 warrants (the "Fundraising Warrants").
The Fundraising Warrants have an accelerator clause which will apply should the
volume weighted average Ordinary Share price trade for 5 consecutive days at 6
pence or greater following which the Company will have the right to issue
Warrant holders with a two week notice to exercise their Fundraising Warrants.
Unexercised Fundraising Warrants would be cancelled, and any Fundraising
Warrants exercised under this notice must be fully paid up to the Company within
10 business days of notification being made to the Company that the Fundraising
Warrants will be exercised.
The Fundraising Shares will represent approximately 9.52 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 Fundraising has been conducted within the Company's existing share
authorities and is conditional on admission of the Fundraising Shares to trading
on AIM becoming effective.
DIRECTORS' PARTICIPATION IN THE FUNDRAISING
Details of the subscriptions by certain of the Directors in the Fundraising at
the Issue Price and their resultant shareholdings immediately following
Admission are as follows:
Name Fundraising Value of the Ordinary Shares Percentage of
Shares subscriptions held following enlarged issued share
being at the completion of capital
subscribed Issue Price the Fundraising
Professor 2,000,000 £50,000 12,263,912 11.67%
Richard
Conroy
(Chairman)
Dr Sorca 2,000,000 £50,000 3,143,165 2.99%
Conroy
(Non
-Executive
Director)
In addition, Professor Richard Conroy and Dr Sorca Conroy have both been issued
with 2,000,000 Fundraising Warrants at a price of 4 pence per Ordinary Share
exercisable for a period of 12 months from the admission to trading on AIM of
the Fundraising Shares.
ADMISSION, WARRANTS AND TOTAL VOTING RIGHTS
The issue of the Fundraising Shares and the possible issue of new Ordinary
Shares from the exercise of the 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 Fundraising Shares. It is expected that Admission will become effective
and that dealings in the Fundraising Shares on AIM will commence on or around 27
October 2023.
The 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 Fundraising, and following Admission,
the Company's enlarged issued ordinary share capital will comprise 105,092,749
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:
Karelian Diamond Resources plc +353-1-479-6180
Professor Richard Conroy, Chairman
Allenby Capital Limited (Nomad) +44-20-3328-5656
Nick Athanas / Nick Harriss
Peterhouse Capital Limited (Broker) +44-20-7469-0930
Lucy Williams / Duncan Vasey
Lothbury Financial Services +44-20-3290-0707
Michael Padley
Hall Communications +353-1-660-9377
Don Hall
http://www.kareliandiamondresources.com
The below notifications made in accordance with the requirements of the UK
Market Abuse Regulation provide further detail:
+--+----------------------------+--------------------------------------------+
|1 |Details of the person |
| |discharging managerial |
| |responsibilities / person |
| |closely associated |
+--+----------------------------+--------------------------------------------+
|a)|Name |Professor Richard Conroy |
+--+----------------------------+--------------------------------------------+
|2 |Reason for the notification |
+--+----------------------------+--------------------------------------------+
|a)|Position/status |Chairman of the Board |
+--+----------------------------+--------------------------------------------+
|b)|Initial notification |Initial notification |
| |/Amendment | |
+--+----------------------------+--------------------------------------------+
|3 |Details of the issuer, |
| |emission allowance market |
| |participant, auction |
| |platform, auctioneer or |
| |auction monitor |
+--+----------------------------+--------------------------------------------+
|a)|Name |Karelian Diamond Resources Plc |
+--+----------------------------+--------------------------------------------+
|b)|LEI |63540092EZYLYI8LGX48 |
+--+----------------------------+--------------------------------------------+
|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 ?0.00025 each in Karelian|
| |instrument, type of |Diamond Resources Plc |
| |instrument | |
| | |Identification code (ISIN): IE00BD09HK61 |
| |Identification code | |
+--+----------------------------+--------------------------------------------+
|b)|Nature of the transaction | |
| | | 1. Purchase of Ordinary Shares |
| | | |
| | | 2. Issue of warrants |
+--+----------------------------+--------------------------------------------+
|c)|Price(s) and volume(s) | |
| | | 1. Price: 2.5p per share |
| | | |
| | |Volume: 2,000,000 |
| | | |
| | | 2. Exercise price: 4p per share |
| | | |
| | |Volume: 2,000,000 |
+--+----------------------------+--------------------------------------------+
|d)|Aggregated information |See above. |
| | | |
| |- Aggregated volume | |
| | | |
| |- Price | |
+--+----------------------------+--------------------------------------------+
|e)|Date of the transaction |20 October 2023 |
+--+----------------------------+--------------------------------------------+
|f)|Place of the transaction | |
| | | 1. London Stock Exchange - AIM |
| | | |
| | | 2. Outside of a trading venue |
+--+----------------------------+--------------------------------------------+
+--+----------------------------+--------------------------------------------+
|1 |Details of the person |
| |discharging managerial |
| |responsibilities / person |
| |closely associated |
+--+----------------------------+--------------------------------------------+
|a)|Name |Dr. Sorca C. Conroy |
+--+----------------------------+--------------------------------------------+
|2 |Reason for the notification |
+--+----------------------------+--------------------------------------------+
|a)|Position/status |Non-executive Director |
+--+----------------------------+--------------------------------------------+
|b)|Initial notification |Initial notification |
| |/Amendment | |
+--+----------------------------+--------------------------------------------+
|3 |Details of the issuer, |
| |emission allowance market |
| |participant, auction |
| |platform, auctioneer or |
| |auction monitor |
+--+----------------------------+--------------------------------------------+
|a)|Name |Karelian Diamond Resources Plc |
+--+----------------------------+--------------------------------------------+
|b)|LEI |63540092EZYLYI8LGX48 |
+--+----------------------------+--------------------------------------------+
|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 ?0.00025 each in Karelian|
| |instrument, type of |Diamond Resources Plc |
| |instrument | |
| | |Identification code (ISIN): IE00BD09HK61 |
| |Identification code | |
+--+----------------------------+--------------------------------------------+
|b)|Nature of the transaction | |
| | | 1. Purchase of Ordinary Shares |
| | | |
| | | 2. Issue of warrants |
+--+----------------------------+--------------------------------------------+
|c)|Price(s) and volume(s) | |
| | | 1. Price: 2.5p per share |
| | | |
| | |Volume: 2,000,000 |
| | | |
| | | 2. Exercise price: 4p per share |
| | | |
| | |Volume: 2,000,000 |
+--+----------------------------+--------------------------------------------+
|d)|Aggregated information |See above. |
| | | |
| |- Aggregated volume | |
| | | |
| |- Price | |
+--+----------------------------+--------------------------------------------+
|e)|Date of the transaction |20 October 2023 |
+--+----------------------------+--------------------------------------------+
|f)|Place of the transaction | |
| | | 1. London Stock Exchange - AIM |
| | | |
| | | 2. Outside of a trading venue |
+--+----------------------------+--------------------------------------------+
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