Karelian Diamond Resources P.l.c. (KDR) is the holding company of a diamond exploration group focused on the discovery of potential world-class diamond deposits on the Finnish side of the Karelian Craton.
In July 2004, the Company purchased Nordic Diamonds Limited from Conroy P.l.c. and Karelian Diamonds Limited from Conroy Diamonds and Gold P.l.c., together with all intellectual property and confidential proprietary data relating to the diamond exploration programmes in Finland of those two companies.
An independent geologist’s report was prepared by the CSA Group (“CSA”) to provide an assessment of Karelian’s diamond exploration properties and information portfolio in Finland, in preparation for the listing of the Company on AIM.
CSA, in their summary and conclusions, stated that, ‘The Archaean Cratons (Kola and Karelia) of Finland are an area of thick lithosphere and low heat flow. Structural zones (activation zones) exist that provide pathways for kimberlite emplacement. Significant and world class diamond occurrences have been found within the Craton, e.g. Archangel Kimberlite Fields in Russia. Diamonds have also been found in the Karelian Craton, e.g. the Kuopio-Kaavi kimberlite clusters. The area has proven prospectivity for diamonds.’
CSA also commented that ‘the comprehensive data package, exclusive survey results and a significant portfolio of claims transferred into Karelian will provide Karelian with a significant advantage in its future operations.’ They also stated that ‘all four blocks of claims are highly prospective for diamonds.’
The Company’s shares were successfully admitted to trading on AIM on September 1st, 2005. On admission, KDR raised £500,000 (before expenses) through a placement of 10,000,000 ordinary shares at 5 pence each, representing 22.3 per cent of the enlarged issued share capital of 44,771,676 ordinary shares.
The Directors believe that Admission to AIM has had a number of benefits, through raising the profile of the Company, both amongst the investment community and within the mining industry, and by providing the opportunity to raise further equity capital should it become required or desirable, thereby assisting the Company's ability to grow. The AIM listing will also provide liquidity for current and future Shareholders.
The management of Karelian, together with its staff and consultants, have a track record of success in mineral exploration and look to enhance this record with a major commercial diamond discovery in Finland.