Conroy set egm to de-merge Finnish interests

Conroy Diamonds & Gold today said it plans to de-merge its diamond interests in Finland into a separate entity called Karelian Diamond Resources.

The company said the segregation of its diamond interests from its other interests will enable it to focus on gold exploration and that it plans to list Karelian on the Alernative Investment Market in London.

Shareholders in Conroy will receive shares in the new company on a one-for-six basis.

The company is seeking High Court approval for the reduction of the Conroy Diamonds and Gold share premium account by €1.025m to reflect the de-merger of the diamond interests.

Immediately following the proposed transfer, Karelian will acquire the diamond interests of another company, Conroy PLC.

Under the proposals, Conroy Diamonds shareholders will receive about 29.5% of the issued capital of Karelian and Conroy PLC will get 70.5%.

An extraordinary general meeting will be held on July 8 to ratify the proposals.