Karelian Diamond Resources PLC (LON:KDR), the diamond exploration company focused on Finland, has raised £420,000 before expenses via a share placing to provide funds to explore the acreage surrounding its Lahtojoki diamond deposit.
The group said the successful placing was for 10,500,000 ordinary shares of €0.00025 each at a price of 4p per ordinary share, a discount of 23.8% to the closing mid-market price on Monday, August 17, 2020. In early morning trade on Tuesday, Karelian shares were changing hands at 4.15p.
READ: Karelian Diamonds now has legal right of way across Lahtojoki and plans immediate initiation of exploration work
It noted that the placing shares, which will represent approximately 19.6% of the company’s enlarged share capital have been subscribed for by new investors, and was arranged by Brandon Hill Capital Limited, the company’s broker.
Karelian said the net proceeds of the placing will be used to explore the acreage surrounding the Lahtojoki diamond deposit and to expedite its technical assessment of the deposit, as well as for exploration in the Kuhmo region of Finland where the company has discovered a green diamond in till and for general working capital purposes.
In a statement, Professor Richard Conroy, Karelian Diamond’ chairman commented: “The additional funds raised will be used to further accelerate the programme at Lahtojoki that was announced yesterday.
“We are pleased with the interest shown in the Company from certain new investors and look forward to updating shareholders as our exploration programme around the Lahtojoki diamond deposit progresses.”
On Monday, Karelian said it had been informed by the National Land Survey of Finland that there were no appeals against the grant of rights of way for the Lahtojoki diamond deposit and the adjacent exploration acreage, and as such the grant has now gained legal force.