REG-Conroy Gold & Natural Resources Plc: Debt capitalisation of amounts owed by KDR

Conroy Gold and Natural ResourcesAnnouncement

19/05/2023 07:15

19 May 2023

Conroy Gold and Natural Resources plc

(“Conroy Gold” or “the Company”)

DEBT CAPITALISATION OF AMOUNTS OWED BY KARELIAN DIAMOND RESOURCES PLC
* Capitalisation of debt amounting to £125,000 into new ordinary shares in
Karelian Diamond Resources plc at a price of 2.5p per share
* Exchange of debt amounting to £112,500 into a convertible loan of £112,500
in Karelian Diamond Resources plc
Conroy Gold and Natural Resources PLC (AIM: CGNR), the gold exploration and
development company focused on Ireland and Finland, is pleased to announce
that it has acquired an equity interest in AIM-quoted Karelian Diamond
Resources plc (“Karelian Diamonds” - AIM: KDR) through entering into a
debt capitalisation arrangement, including the issue of convertible loan
notes, (together, the “Investment”) with Karelian Diamonds.

As set out in the Company’s financial statements, the Company shares
accommodation and staff with Karelian Diamonds which has certain common
Directors and shareholders. As at the end of the six-month period ending 30
November 2022 Conroy Gold was owed €234,651 by Karelian Diamonds.  In order
to address amounts owing, Karelian Diamonds and Conroy Gold have reached
agreement that it capitalises an amount equivalent to £125,000 of this
balance into 5,000,000 new ordinary shares of €0.00025 each in the capital
of Karelian Diamonds (“KDR Shares”) at a price of 2.5p per KDR Share (the
“Debt Capitalisation Shares”).

Remaining outstanding amounts equivalent to £112,500 will be incorporated
into a convertible loan note (the “Loan Note”) with a term of 18 months
attracting an interest rate of 5% per annum, payable on the redemption or
conversion of the Loan Note.   The Loan Note can be converted at the option
of Conroy Gold at a price equivalent to 5p per KDR Share. 

The Investment is being made concurrently with an equity fundraising
undertaken by Karelian Diamonds to raise £100,000 at 2.5p per KDR Share, full
details of which have been announced by Karelian Diamonds today and which can
be found on the Karelian Diamonds website - www.kareliandiamondresources.com.

Following the Investment and completion of the fundraising by Karelian
Diamonds, Conroy Gold is expected to be interested in 5,000,000 KDR Shares
equivalent to 5.29% of the enlarged issued share capital of Karelian Diamonds.

KARELIAN DIAMOND RESOURCES PLC

Karelian Diamonds is targeting diamond assets in the Finnish section of the
Karelian Craton which straddles Finland and Russia and contains two world
class diamond deposits on the Russian side of the border.

Karelian Diamonds owns the Lahtojoki diamond deposit over which it has secured
a mining concession and also has further diamond exploration licences in the
Kuhmo region. A Preliminary Economic Assessment (“PEA”) on its Lahtojoki
diamond deposit has been re-evaluated by the company’s brokers First Equity
Limited to incorporate the known presence of pink diamonds in the deposit as
their price is up to 10 times the price of colourless diamonds. This revised
PEA has been risked to factor in exploration, financing and discovery risk
giving a revised risked NPV(8) of US$33.1 million.   

Karelian Diamonds has also been conducting a successful exploration programme
in the Kuhmo area close to the Russian border, highlights of which include:
* A green diamond discovered in surface till at Kuhmo Anomaly 5
* Kimberlite indicator minerals, including G9 and G10 garnets, which are known
indicators of diamond prospectivity
* A kimberlite dyke, 350m in strike length (open along strike and at depth),
at Riihivaara, confirming presence of kimberlite bodies in the immediate area
* Drone survey data leading to identification of 23 kimberlite targets
It also has licences in Northern Ireland in which assay results from stream
sediment sampling are indicative of the possible presence of
Nickel-Copper-Platinum mineralisation.

The Investment, in conjunction with the fundraising undertaken by Karelian
Diamonds, will assist Karelian Diamonds in accelerating its exploration
programmes.

For further information please contact:

 Conroy Gold and Natural Resources plc                                                      Tel: +353-1-479-6180               
 Professor Richard Conroy, Chairman                                                                                            
 Allenby Capital Limited (Nomad)                                                           Tel: +44-20-3328-5656               
 Nick Athanas/Nick Harriss                                                                                                     
 First Equity Limited (Broker) Jason Robertson   Lothbury Financial Services  Tel: +44-20-7330-1883    T el: +44-20-3290-0707  
 Michael Padley                                                                                                                
 Hall Communications                                                                       Tel : +353-1-660-9377               
 Don Hall                                                                                                                      

Visit the website at: www.conroygold.com



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