Conroy Gold and Natural Resources plc has acquired shares in Karelian Diamond Resources plc to part-settle debt owed to it.
TERMS
The company has also agreed a loan to help fund Karelian’s exploration in Finland.
As at the end of the six-month period ending 30 November 2022, Dublin-based Karelian owed Conroy Gold €234,651.
Conroy Gold today said that it had acquired 5 million new ordinary shares of €0.00025 in the capital of Karelian each at a price of 2.5p [sic].
Remaining outstanding amounts equivalent to £112,500 will be incorporated into an 18-month convertible loan note with an interest rate of 5% per annum, payable on redemption or conversion of the loan note.
Conroy Gold has the option of converting the loan note at a price equivalent to 5p per Karelian share.
Conroy Gold added that Karelian is at the same time conducting a £100,000 fundraise at 2.5p per share, after which Conroy Gold expects to hold 5 million Karelian shares equivalent to 5.29% of its enlarged issued share capital.
The loan and proceeds of the fundraise will help Karelian accelerate its exploration programmes.
As at 19 May 2023, Karelian’s website states that Conroy Gold founder, Professor Richard Conroy, holds 10,263,912 of its shares representing 12.15% of the company.
Other significant shareholders hold a total 28% of the shares.
KARELIAN
Both companies have Professor Conroy as chairman, Maureen Jones as managing director, some of the same members of staff and management team, and “certain common shareholders”.
Karelian owns and has a mining concession for the Lahtojoki diamond deposit and diamond exploration licences in the Kuhmo region.
The company is targeting diamond assets in the Finnish section of the Karelian Craton which straddles Finland and Russia and contains “two world class diamond deposits on the Russian side of the border”.
Karelian also has licences for possible nickel-copper-platinum mineralisation in Northern Ireland.