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(Alliance News) - Karelian Diamond Resources PLC on Tuesday said it has raised a total of GBP240,000 through a share subscription and the issue of an unsecured convertible loan note.
The exploration company focused on Finland said it issued 3.0 million shares at a price of 4 pence each, raising GBP120,000. The shares were subscribed by a new investor, Fredrik Bjornberg.
Following the admission, Karelian Diamond said, Bjornberg will have a 7.0% interest in the firm.
The stock was trading 51% higher in London on Tuesday at 2.72p a share, giving it a market capitalisation of GBP1.1 million.
Alongside the subscription, the company said it has entered into a convertible loan note agreement for a total amount of GBP120,000 with Bjornberg.
The note is unsecured, has a term of three years and attracts interest at a rate of 5% per annum, Karelian Diamonds said. The note is convertible at the price of 10p.
The proceeds of the fundraising will used for general working capital purposes, Karelian Diamond said, and to continue the company's diamond exploration both around Lahtojoki and in the Kuhmo region of Finland.
"I am delighted to welcome Bjornberg as an investor in Karelian Diamond, which highlights local investor support for the development of what we anticipate will, in the future, be Europe's first diamond mine," said Karelian Diamonds Chair Richard Conroy.
"Bjornberg's experience in industry, including the mining industry in Finland, and his knowledge of and connections with the Kuopio - Kaavi area in which the Lahtojoki diamond deposit is located will be valuable to the company moving forward," added Conroy.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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