Karelian Diamond Resources PLC on Tuesday announced a placing to raise £250,000 to fund its mining operations and exploration.
The Dublin-based exploration company focused on Finland said it had placed 12.5 million shares at 2 pence each, a 20% discount to Monday’s closing price of 2.5p. The funds would be used for exploration work at two new licences in Northern Ireland, and the company’s mining concession in Lahtojoki diamond project in Finland.
The fundraising share carries a warrant to subscribe for one new ordinary share at 4p per share - creating 12.5 million warrants - exercisable for 2 years from the admission of the fundraising shares.
‘I welcome the completion of this fundraising which comes as we look forward to an exciting time for the company with the promise of our newly awarded Irish Licences potentially leading to the discovery of nickel-copper-platinum mineralisation, in addition to the upcoming National Land Survey proceedings meeting to come in December which is an important milestone in the journey to the development of a mine at Lahtojoki,’ Chair Richard Conroy said.
Kimberlite boulder from the company’s Lahtojoki project indicated potential for the presence of diamonds, Karelian Diamonds said.
Also on Tuesday, Karelian reported its annual results. The company’s pretax profit for the year ended May 31 was €13,593, swinging from a loss of €422,192 the year before. It recorded no revenue in either period.
Karelian Diamonds shares were up 4.1% trading at 2.29p each at midday on Friday in London.
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