Issue of Equity
07/01/2014 07:00
7 January 2014
Placing to raise 750,000
* Placing of 37,500,000 new ordinary shares at 2 pence per share to raise 75
0,000 before expenses on the back of demand from private retail clients
* Proceeds of the placing to be applied to accelerate ongoing programmes at
the Company's various diamond prospects in Finland
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Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), the diamond
exploration company focused on Finland, announces that it has conditionally
raised 750,000, before expenses, through a placing ("the Placing") of
37,500,000 ordinary shares ("Placing Shares") of EUR0.01 in the capital of the
Company ("Ordinary Shares"). The Placing Shares have been placed at a price of
2 pence per Placing Share ("the Placing Price"), a 33.3% increase on the
previous placing announced on 11 December 2013.
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 New Shares will rank pari passu with the existing
issued ordinary shares of EUR 0.01 in the capital of the Company ("Ordinary
Shares").
The Company intends to use the net proceeds of the Placing primarily to
accelerate further the Company's ongoing programmes at its various diamond
prospects in Finland and for working capital generally.
Application has been made to AIM and ESM for the Placing Shares to be admitted
to trading. Admission and trading are expected to commence on 10 January 2014.
On admission of the 37,500,000 Placing Shares, the Company will have
207,700,008 Ordinary Shares in issue in total. Professor Richard Conroy holds
68,356,701 Ordinary Shares in the Company, representing approximately 32.91 per
cent. of the Company's enlarged share capital and total voting rights following
the Placing.
Professor Richard Conroy, Chairman, commented:
"The Company is delighted that due to exceptional further demand from private
retail clients XCAP were able to raise another substantial amount to fund the
Company's diamond prospects in Finland. With the Company's strong share price
in the market recently, we are very pleased to have continued support from
investors. The placing has been done at a 33.3% price increase to the placing
in December, 2013."
Further Information:
Professor Richard Conroy, Chairman, Karelian Tel: +353-1-661-8958
Diamond Resources plc
Simon Clements/Virginia Bull, Sanlam Securities UK Tel: +44-20-7628-2200
Limited (Nomad)
Ger Heffernan, IBI Corporate Finance Limited (ESM Tel: +353-7662-34800
Adviser)
Jon Belliss/Abigail Wayne, XCAP Securities PLC Tel: +44-20-7101-7070
(Broker)
Michael Padley/Michael Spriggs, Lothbury Financial Tel: +44-20-3440-7620
Services Limited
Don Hall, Hall Communications Tel: +353-1-660-9377
http://www.kareliandiamondresources.com
END