Karelian raises £500,000 via placing

AIM-quoted exploration company Karelian Diamonds conditionally raised £500,000 on Monday by virtue of a placing and subscription of 11.11m new ordinary shares in the company's capital at 4.5p each.

Karelian intends to use the proceeds of the placing for exploration drilling programmes at its at its Kumho, Lahtojoki and Riihivaarä sites in Finland and the advancement of its diamond projects.

Application has been made to AIM for the placing shares to be admitted to trading around 15 June.

In conjunction with the placing, Karelian issued 388,889 broker warrants to Brandon Hill Capital, which are exercisable at the placing price until 11 December 2020.

Professor Richard Conroy, Karelian's chairman, said, "Following the recent discovery of the green diamond in the till sample at Kuhmo we are very enthusiastic about the opportunities for the company and look forward to updating shareholders in due course."

"Moreover, the board of the company are contributing to the placing and the company thanks them for their support," Conroy added.

As of 0830 BST, Karelian shares had tumbled 19.23% to 5.25p.