1st Sep 2009 07:00
1 September 2009 Conroy Diamonds and Gold P.l.c. ("Conroy" or "the Company") Subscription to raise EUR300,000 and debt capitalisation
Conroy (AIM:CDG) is pleased to announce that, further to the subscription announced on 25 August 2009 (which raised EUR264,000 for the Company), it has raised an additional EUR300,000 by way of a subscription of 10,000,000 new ordinary shares at EUR0.03 each, from a new Irish investor, Mr Patrick O'Sullivan. In addition, Professor Richard Conroy has capitalised loans amounting to EUR325,000 by subscribing for 10,833,333 shares at the same price (together with the subscription shares set out above ("New Shares")).
The Company intends to use the proceeds of the share issues primarily to fund the ongoing work programmes at its gold prospects in Ireland, in relation to which the Company has already announced the discovery of a resource of more than one million ounces of gold, and for working capital generally.
Professor Richard Conroy, Chairman commented:
"I am delighted to welcome Mr O'Sullivan as a significant investor in the Company. The funds we have raised in the past few days will allow us to move the Clontibret project through the pre-feasibility stage whilst continuing delineation work at Clay Lake and other prospects."
Following the admission of the New Shares to trading on AIM, the Company will have a total of 135,721,630 shares in issue. On admission Mr O'Sullivan will hold 10,000,000 ordinary shares in the Company, equivalent to 7.37 per cent. of the issued share capital. In addition, Professor Conroy will hold 40,377,639 ordinary shares in the Company, equivalent to 29.75 per cent. of the issued share capital. Professor Conroy's holding includes 19,294,286 ordinary shares held by Conroy P.l.c, a company in which Professor Conroy has a controlling interest.
Under the AIM Rules, the debt capitalisation by Professor Conroy is a related party transaction. The independent directors of Conroy, having consulted with John East & Partners Limited ("JEP"), the Company's nominated adviser, consider the terms of the debt capitalisation to be fair and reasonable in so far as the Company's shareholders are concerned. In advising the independent directors, JEP has taken into account the commercial judgement of the independent directors.
Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM and it is expected that admission will become effective and trading will commence on 4 September 2009.
Enquiries:
Conroy Diamonds and Gold Plc Professor Richard Conroy, Chairman +353 1 661 8958
John East & Partners Limited, a subsidiary of Merchant Securities Plc (Nomad)
Simon Clements/Virginia Bull +44 20 7628 2200 Lothbury Financial Ron Marshman/Michael Padley +44 20 7011 9411
Further details on Conroy Diamonds and Gold can be found on its website at: www.conroydiamondsandgold.com
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CONROY DIAMONDS & GOLD PLCRelated Shares:
Conroy Gld&nres