RNS29 Nov 2022 07:42
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 a
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