Placing and Debt Capitalisation
11/12/2013 07:00
11 December 2013
Placing to raise 700,000 and debt capitalisation
* Placing of 46,666,666 new ordinary shares at 1.5 pence per share to raise
700,000 before expenses
* Debt capitalisation of 469,875 at 1.5 pence per share
* Proceeds of the placing to be applied to accelerate ongoing programmes at
its various diamond prospects in Finland
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Karelian Diamond Resources plc ("Karelian") (AIM: KDR, ESM: KDRI), the diamond
exploration company focussed on Finland, announces that it has conditionally
raised 700,000, before expenses, through a placing ("the Placing") of
46,666,666 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
1.5 pence per Placing Share ("the Placing Price"). In addition, Professor
Richard Conroy, Chairman of the Company, has capitalised loans amounting to 4
69,875 by subscribing for 3 1,325,000 Ordinary Shares of EUR0.01 in the capital
of the Company at the Placing Price (together with the Placing Shares set out
above ("New Shares")).
Following the admission of the New Shares, Professor Richard Conroy will hold 6
8,356,701 Ordinary Shares in the Company, representing approximately 40. 16 per
cent. of the Company's enlarged share capital and total voting rights.
The Placing Shares were placed with institutional and retail investors by XCAP
Securities Plc ("XCAP"). The Placing and Subscription are conditional, inter
alia, on admission of the Placing and Subscription 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 accelerate
the Company's ongoing programmes at its various diamond prospects in Finland
and for working capital generally.
Professor Richard Conroy's participation in the debt capitalisation is a
related party transaction under the AIM Rules. The independent directors,
having consulted with the Company's nominated adviser and ESM adviser, consider
the terms of the debt capitalisation to be fair and reasonable insofar as the
Shareholders are concerned.
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 December 2013.
On admission of the 7 7,991,666 New Shares, the Company will have 17 0,200,008
Ordinary Shares in issue in total.
Professor Richard Conroy, Chairman, commented:
"The support from institutional investors is much appreciated. These monies
will allow us to accelerate ongoing programmes at our diamond prospects in
Finland. At one of our targets, Seitaper, the diamondiferous kimberlite pipe
discovered is, at 6.9 hectares, the largest known diamondiferous kimberlite
pipe in Finland.
"The Placing will also allow for further work on other targets arising from the
integration of the Company's data with the extensive database made available in
accordance with the agreement between Karelian and Rio Tinto Mining and
Exploration."
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/ David Lawman, 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