Finance Metals & Minerals News

Karelian raises £250,000 via 33% discounted placing

Karelian Diamond Resources plc has raised £250,000 via a discounted placing of 10 million ordinary shares each of €0.00025, at a price of 2.5 pence per ordinary share.

DIRECTORS’ DEALINGS

The fundraise was at 2.5 pence per ordinary share, representing a discount of 33.3% to the closing mid-market price of 3.75 pence on 19 October 2023.

Each fundraising share carries a warrant to subscribe for one new ordinary share each at a price of 4 pence, exercisable for 12 months from admission, creating 10 million warrants.

The fundraising shares, mainly issued to new investors and certain existing investors, represent approximately 9.52% of the enlarged issued share capital of the company.

Karelian chairman Professor Richard Conroy subscribed for two million shares for £50,000 taking his total shares held to 12,263,912, representing 11.67% of the enlarged issued share capital.

His daughter and non-executive director Dr Sorca Conroy also subscribed for two million shares for £50,000 taking her total shareholding to 3,143,165 (2.99%).

Both also received two million warrants.

Following admission, Karelian’s enlarged issued ordinary share capital will comprise 105,092,749 ordinary shares with none held in treasury.

Money raised will go towards exploration for nickel-copper-platinum group metals in Northern Ireland, diamonds in Finland and working capital.