Issue of Equity
14/01/2014 07:00
14 January 2014
Placing to Raise 550,000
* Placing of 27,500,000 new ordinary shares at 2 pence per share to raise 55
0,000 before expenses due to demand from existing shareholders
* Proceeds of the placing to be applied to implement ongoing programmes at
its various diamond prospects in Finland
* Placing due to further demand from institutional and retail shareholders
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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 550,000, before expenses, through a placing ("the Placing") of
27,500,000 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").
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 EUR 0.01 in the capital of the Company
("Ordinary Shares").
The Company intends to use the net proceeds of the Placing primarily to
implement 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 17 January 2014.
On admission of the 27,500,000 Placing Shares, the Company will have
235,200,008 Ordinary Shares in issue in total. Professor Richard Conroy holds
68,356,701 Ordinary Shares in the Company, representing approximately 29.1% per
cent. of the Company's enlarged share capital and total voting rights following
the Placing.
Professor Richard Conroy, Chairman, commented:
"Due to demand from existing investors following the placing on 7 January 2014
we are delighted to accept further investment from supportive shareholders who
have continued to buy shares in the Company.
As a result, Karelian is delighted to be in its strongest financial position in
the company's history: with this latest placing the company has raised 2
million cumulatively over the last two months.
The management team can now focus on developing the diamond prospects in
Finland , and looks forward to updating its investors as to its progress."
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