REG-Karelian Diamond Res.: Fundraise of £250,000

Karelian Diamond ResourcesAnnouncement

29/11/2022 07:45

29 November 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("EUWA")) ("UK MAR"). IN ADDITION, MARKET
SOUNDINGS (AS DEFINED IN UK MAR) WERE TAKEN IN RESPECT OF CERTAIN OF THE
MATTERS CONTAINED WITHIN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN
PERSONS BECAME AWARE OF INSIDE INFORMATION (AS DEFINED UNDER UK MAR). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THOSE
PERSONS THAT RECEIVED INSIDE INFORMATION IN A MARKET SOUNDING ARE NO LONGER IN
POSSESSION OF SUCH INSIDE INFORMATION, WHICH IS NOW CONSIDERED TO BE IN THE
PUBLIC DOMAIN.

Karelian Diamond Resources plc

(“Karelian Diamonds” or the “Company”)

Fundraise of £250,000

Karelian Diamond Resources plc (AIM: KDR) is pleased to announce a placing to
raise a total of £250,000 (before expenses) (the “Fundraising”).

HIGHLIGHTS
* Karelian Diamonds has raised funds to enable it to advance both its diamond
mining concession and exploration licences in Finland and in Ireland.
* The Fundraising strengthens its working capital position in advance of the
proceedings meeting which will be held in December 2022 in relation to the
mining concession at the Lahtojoki diamond deposit, which the Board believe
contains both high quality colourless gem diamonds and coloured diamonds
including highly valuable pink diamonds.
* Funds will also be used to initiate exploration work at the Company’s two
newly granted licenses in Northern Ireland, prospective for
Nickel-Copper-Platinum mineralisation. The exploration targets are based on
the mafic and/or ultramafic dyke-sill complexes in the area which are similar
to those that are known to host the world class Noril’sk
Nickel-Copper-Platinum deposit.
FUNDRAISING SUMMARY

The Fundraising was arranged at 2 pence per share (the “Issue Price”),
representing a discount of 20 per cent. to the closing mid-market price of 2.5
pence on 28 November 2022.
* Placing of 12,500,000 ordinary shares of €0.00025 each (“Ordinary
Shares”) at a price of 2 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 2
years from the admission to trading on AIM of the Fundraising Shares
(“Admission”), creating 12,500,000 warrants (“Fundraising
Warrants”). 
* The Fundraising has been arranged by Monecor (London) Ltd trading as OvalX,
who are acting as placing agent to the Company for the purposes of the
Fundraising. OvalX will be issued with 600,000 warrants at a price of 2 pence
per Ordinary Share exercisable for a period of 2 years from Admission of the
Fundraising Shares (“Broker Warrants”, and together with the Fundraising
Warrants, the “Warrants”). Should all the above Warrants be exercised on
or before 5 December 2024, this would generate an additional £512,000 of
funding for the Company over and above the amount secured through this
Fundraising. There can be no guarantee that any Warrants will be exercised in
the future and that additional proceeds will be received by the Company.
* The Fundraising Shares will represent approximately 15.4 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.
Professor Richard Conroy, Chairman, commented:

“I welcome the completion of this fundraising which comes as we look forward
to an exciting time for the company with the promise of our newly awarded
Irish Licences potentially leading to the discovery of Nickel-Copper-Platinum
mineralisation, in addition to the upcoming National Land Survey proceedings
meeting to come in December which is an important milestone in the journey to
the development of a mine at Lahtojoki.”

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
5 December 2022.

OvalX will be issued with 600,000 Broker Warrants as part of their role in
arranging the Fundraising. These Broker Warrants will be on the same terms as
the Fundraising Warrants issued pursuant to the Fundraising.

Upon completion of the Fundraising, the Company will have a total of
29,875,000 warrants in issue.

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 81,042,749 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 is available through the Company’s website:
www.kareliandiamondresources.com

For further information please contact:

Further information:

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

http://www.kareliandiamondresources.com



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