REG-Karelian Diamond Res.: Issue of Equity

Karelian Diamond ResourcesAnnouncement

18/08/2020 07:05

18 August 2020

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 ("MAR"). IN ADDITION, MARKET
SOUNDINGS WERE TAKEN IN RESPECT OF THE MATTERS CONTAINED IN THIS ANNOUNCEMENT,
WITH THE RESULT THAT CERTAIN PERSONS BECAME AWARE OF SUCH INSIDE INFORMATION.
UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE
TO BE IN POSSESSION OF INSIDE INFORMATION.

Karelian Diamond Resources plc

(“Karelian Diamonds” or the “Company”)

Placing to raise £420,000

Karelian Diamond Resources plc (AIM:KDR), the diamond exploration company
focused on Finland, is pleased to announce the successful placing of
10,500,000 ordinary shares of €0.00025 each (“Ordinary Shares”) at a
price of 4 pence per Ordinary Share (the “Placing Shares”) to raise
£420,000 (the “Placing”) before expenses.

The net proceeds of the Placing will be used by the Company to explore the
acreage surrounding the Lahtojoki diamond deposit and to expedite its
technical assessment of the deposit, for exploration in the Kuhmo region of
Finland where the Company has discovered a green diamond in till and for
general working capital purposes.

The Placing Shares, which will represent approximately 19.6 per cent. of the
share capital of the Company as enlarged by the Placing, have been subscribed
for by new investors. The Placing price represents a discount of 23.8 per
cent. to the closing mid-market price on 17 August 2020. The Placing has been
arranged by Brandon Hill Capital Limited, the Company’s broker (“BHC”).

On Admission BHC will be granted warrants to subscribe for 525,000 new
ordinary shares in the Company at an exercise price of 4 pence per Ordinary
Share for a period of 30 months from Admission (the “Broker Warrants”).
The Broker Warrants will not be transferable and will not be admitted to
trading on AIM or any other stock market.

The issue of the Placing Shares and the possible issue of new Ordinary Shares
from the exercise of the Broker Warrants, are made under the Company’s
existing share authorities.  An application will be made shortly for the
Placing Shares to be admitted to trading on the AIM market of the London Stock
Exchange with effect from 24 August 2020 (“Admission”).

In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the
Company confirms that on completion of the Placing and the
Subscription, and following Admission, the Company's enlarged
issued ordinary share capital will comprise 53,542,749 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.

Professor Richard Conroy, Chairman, Karelian Diamond Resources plc, commented:

“The additional funds raised will be used to further accelerate the
programme at Lahtojoki that was announced yesterday. We are pleased with the
interest shown in the Company from certain new investors and look forward to
updating shareholders as our exploration programme around the Lahtojoki
diamond deposit progresses.”

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  
 Brandon Hill Capital (Broker)  Jonathan Evans                       +44-20-3463-5000  
 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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