Karelian Diamond Resources PLC on Friday said it will place 4.0 million new shares to fund exploration programmes in Finland and Northern Ireland, and has entered debt capitalisation and convertible loan agreements with Conroy Gold and Natural Resources PLC.

The Dublin-based exploration company announced the placing of 4.0 million new shares at 2.5 pence each to raise £100,000 before expenses. Karelian Diamond said this issue price represents a 3.8% discount to yesterday’s closing mid-market price.

Shares in Karelian Diamond were flat at 2.24p on Friday in London. Conroy’s shares were 7.0% lower on Friday at 16.05p each.

Karelian Diamond will use the fundraising proceeds to accelerate its exploration programmes for diamonds in Finland’s Kuhmo region and for nickel, copper and platinum group metals in Northern Ireland. The company announced plans for these explorations in late April.

Karelian Diamond has agreed with Conroy Gold to capitalise £125,000 of Karelian’s debt balance into 5.0 million new shares at the issue price. Remaining outstanding amounts equivalent to £112,500 then will be incorporated into a loan note which Conroy Gold may convert at 5p per share. Karelian Diamond owed €234,651 at November 30 to Conroy Gold, which generated a €256,484 pretax loss in the 2022 financial year.

Karelian Diamonds will apply for the new shares to be admitted to trading on AIM, with completion expected on or around Friday next week. Following admission Karelian’s issued share capital will comprise 94.5 million shares.

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