Business
Debt capitalisation of amounts owed by KDR
Debt capitalisation of amounts owed by KDR.
About this update from Conroy Gold & Natural Resources Plc
[{"type":"text","content":"\n\n \n \n\n\n\n\n\n19 May 2023\n\nConroy Gold and Natural Resources plc\n\n(“Conroy Gold” or “the Company”)\n\nDEBT CAPITALISATION OF AMOUNTS OWED BY KARELIAN DIAMOND RESOURCES PLC\n\n\nCapitalisation of debt amounting to £125,000 into new ordinary shares in Karelian Diamond Resources plc at a price of 2.5p per share\n\nExchange of debt amounting to £112,500 into a convertible loan of £112,500 in Karelian Diamond Resources plc\n\n\nConroy 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.\n\nAs 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”).\n\nRemaining 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. \n\nThe 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.\n\nFollowing 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 capit...