19 May
2023
Conroy Gold and Natural Resources plc
(“Conroy Gold” or “the Company”)
DEBT
CAPITALISATION OF AMOUNTS OWED BY KARELIAN DIAMOND RESOURCES
PLC
- Capitalisation of debt amounting to £125,000 into new
ordinary shares in Karelian Diamond Resources plc at a price of
2.5p per share
- Exchange of debt amounting to £112,500 into a convertible
loan of £112,500 in Karelian Diamond Resources plc
Conroy Gold and Natural Resources
PLC (AIM: CGNR), the gold exploration and development company
focused on Ireland and
Finland, is pleased to announce
that it has acquired an equity interest in AIM-quoted Karelian
Diamond Resources plc (“Karelian Diamonds” - AIM: KDR) through
entering into a debt capitalisation arrangement, including the
issue of convertible loan notes, (together, the “Investment”) with
Karelian Diamonds.
As set out in the Company’s financial statements, the Company
shares accommodation and staff with Karelian Diamonds which has
certain common Directors and shareholders. As at the end of the
six-month period ending 30 November
2022 Conroy Gold was owed €234,651 by Karelian
Diamonds. In order to address amounts owing, Karelian
Diamonds and Conroy Gold have
reached agreement that it capitalises an amount equivalent to
£125,000 of this balance into 5,000,000 new ordinary shares of
€0.00025 each in the capital of Karelian Diamonds (“KDR Shares”) at
a price of 2.5p per KDR Share (the “Debt Capitalisation
Shares”).
Remaining outstanding amounts equivalent to £112,500 will be
incorporated into a convertible loan note (the “Loan Note”) with a
term of 18 months attracting an interest rate of 5% per annum,
payable on the redemption or conversion of the Loan
Note. The Loan Note can be converted at the option of
Conroy Gold at a price equivalent to
5p per KDR Share.
The Investment is being made concurrently with an equity
fundraising undertaken by Karelian Diamonds to raise £100,000 at
2.5p per KDR Share, full details of which have been announced by
Karelian Diamonds today and which can be found on the Karelian
Diamonds website - www.kareliandiamondresources.com.
Following the Investment and completion of the fundraising by
Karelian Diamonds, Conroy Gold is
expected to be interested in 5,000,000 KDR Shares equivalent to
5.29% of the enlarged issued share capital of Karelian
Diamonds.
KARELIAN DIAMOND RESOURCES PLC
Karelian Diamonds 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 Diamonds owns the Lahtojoki diamond deposit over which
it has secured a mining concession and also has further diamond
exploration licences in the Kuhmo region. A Preliminary Economic
Assessment (“PEA”) on its Lahtojoki diamond deposit has been
re-evaluated by the company’s brokers First Equity Limited to
incorporate the known presence of pink diamonds in the deposit as
their price is up to 10 times the price of colourless diamonds.
This revised PEA has been risked to factor in exploration,
financing and discovery risk giving a revised risked NPV(8) of
US$33.1
million.
Karelian Diamonds has also been conducting a successful
exploration programme in the Kuhmo area close to the Russian
border, highlights of which include:
- A green diamond discovered in surface till at Kuhmo Anomaly
5
- Kimberlite indicator minerals, including G9 and G10 garnets,
which are known indicators of diamond prospectivity
- A kimberlite dyke, 350m in strike
length (open along strike and at depth), at Riihivaara, confirming
presence of kimberlite bodies in the immediate area
- Drone survey data leading to identification of 23 kimberlite
targets
It also has licences in Northern
Ireland in which assay results from stream sediment sampling
are indicative of the possible presence of Nickel-Copper-Platinum
mineralisation.
The Investment, in conjunction with the fundraising undertaken
by Karelian Diamonds, will assist Karelian Diamonds in accelerating
its exploration programmes.
For further information please contact:
Conroy Gold and
Natural Resources plc |
Tel: +353-1-479-6180 |
Professor Richard
Conroy, Chairman |
|
Allenby Capital Limited (Nomad) |
Tel: +44-20-3328-5656 |
Nick Athanas/Nick
Harriss |
|
First Equity Limited (Broker)
Jason Robertson
Lothbury Financial Services |
Tel: +44-20-7330-1883
Tel: +44-20-3290-0707 |
Michael
Padley |
|
Hall
Communications |
Tel: +353-1-660-9377 |
Don Hall |
|
Visit the website at: www.conroygold.com