REG-Karelian Diamond Resources Plc: Fundraising of £323k

Karelian Diamond ResourcesAnnouncement

20/02/2025 07:15

 

THIS ANNOUNCEMENT, INCLUDING ITS APPENDICES AND THE INFORMATION HEREIN, IS
RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, RUSSIA,
AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN, NEW ZEALAND, SINGAPORE
OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION
WOULD BE UNLAWFUL.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF REGULATION
11 OF THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019/310. IN
ADDITION, MARKET SOUNDINGS WERE TAKEN IN RESPECT OF CERTAIN OF THE MATTERS
CONTAINED WITHIN THIS ANNOUNCEMENT, WITH THE RESULT THAT CERTAIN PERSONS
BECAME AWARE OF INSIDE INFORMATION. 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.

 

20 February 2025


 

Karelian Diamond Resources plc

(“Karelian” or the “Company”)

 

Fundraising of £323,075

 

Karelian Diamond Resources plc (AIM: KDR), the Irish mineral resource
exploration and development company which has active exploration programmes
for Nickel-Copper-Platinum Group Elements in Northern Ireland and for diamonds
in the Kuhmo region of Finland, today announces a placing and subscription to
raise a total of £323,075 (before expenses) at 0.75 pence per ordinary share
(the “Issue Price”) (the “Fundraising”).

 

HIGHLIGHTS

 
* The Company plans to use the funds to continue with its initial exploration
work for Nickel-Copper-Platinum Group Elements in Northern Ireland where it is
seeking a strategic partner to carry out a two year exploration programme with
a view to developing a number of targets capable of hosting significant
economic deposits.
* Funds will also be used to continue its diamond exploration and development
programme in Finland where recently high priority targets were identified in
the Company’s search for the source of the green diamond discovery.   
* The Company is planning to advance the proposed development of the Lahtojoki
deposit where finalisation of the mine boundary and landowner compensation is
anticipated to be achieved in the second quarter of 2025.  Funds will also be
used to provide additional working capital for the Company.
 

Brendan McMorrow, Chairman of Karelian, commented:

“We welcome the completion of this fundraising in a difficult market which
comes at an important time for the Company as we progress work on our licence
areas in both Finland and Northern Ireland.  With these funds, together with
the potential for follow on finance through the exercising of related
warrants, the year ahead promises to be an exciting one for the Company.”

 

FUNDRAISING SUMMARY

 

The Issue Price represents a discount of 37.5 per cent. to the closing
mid-market price of 1.20 pence on 19 February 2025, being the last practicable
date prior to this announcement. Peterhouse Capital Limited (“Peterhouse”)
acted as the Company's broker in respect of the Fundraising. The Fundraising
consists of placing and subscription elements, as detailed below:

 
* The placing is for 34,066,667 ordinary shares of €0.00025 each
(“Ordinary Shares”) at the Issue Price (the “Placing Shares”) to raise
approximately £255,500 before expenses (the “Placing”).
 
* The subscription is for 9,010,000 Ordinary Shares at the Issue Price (the
“Subscription Shares”) to raise approximately £67,575 before expenses
 (the “Subscription”).
 
* Each Placing Share and Subscription Share carries a warrant to subscribe for
one new Ordinary Share at a price of 1.5 pence per Ordinary Share exercisable
for a period of 24 months from the admission to trading on AIM of the Placing
Shares and Subscription Shares (“Admission”), creating 43,076,667 warrants
(the “Fundraising Warrants”). In the circumstances set out below, the
Company can require the holders of the Fundraising Warrants to exercise them
within 7 days or they will expire.
 

The Fundraising Warrants have an accelerator clause which will apply should
the Ordinary Shares have a closing mid-market price of 1.75 pence or greater
for any 5 trading days within a 10 trading day period following which the
Company will have the right to issue Fundraising Warrant holders with a one
week notice to exercise their Fundraising Warrants. Unexercised Fundraising
Warrants would be cancelled, and any Fundraising Warrants exercised under this
notice must be fully paid up to the Company within one week of notification
being made to the Company that the Fundraising Warrants will be exercised.

 

The Placing Shares and Subscription Shares will represent approximately 25.08
per cent. of the enlarged issued share capital of the Company and have been
issued to a combination of mainly new investors and certain existing
shareholders.

 

The Fundraising is conditional on Admission becoming effective.

 

ADMISSION, WARRANTS AND TOTAL VOTING RIGHTS

 

The issue of the Placing Shares and Subscription Shares and the possible issue
of new Ordinary Shares from the exercise of the Fundraising 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 Placing Shares and the Subscription Shares. It is expected that
Admission will become effective and that dealings in the Placing Shares and
Investment Shares on AIM will commence on or around 27 February 2025.

 

The Fundraising Warrants will not be admitted to trading on AIM or any other
stock market and will not be transferable. The issuance of the Fundraising
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 171,769,411 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:

 Karelian Diamond Resources plc Brendan McMorrow, Chairman Maureen Jones Managing Director                           +353-1-479-6180                      
 Allenby Capital Limited (Nomad) Nick Athanas / Nick Harriss                                                         +44-20-3328-5656                     
 Peterhouse Capital Limited (Joint Broker) Lucy Williams / Duncan Vasey  CMC Markets (Joint Broker) Douglas Crippen  +44-20-7469-0930  + 44-20-3003-8632  
 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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