Kennady Diamonds arranges $10-million private placement Kennady Diamonds arranges $10-million private placement
2017-04-28 18:34 ET - News Release
Dr. Rory Moore reports
KENNADY DIAMONDS ANNOUNCES $10M NON-BROKERED PRIVATE PLACEMENT
Kennady Diamonds Inc. has set the terms of a non-brokered private placement whereby the company plans to raise approximately $10-million through the issuance of a combination of common shares and flow-through common shares. The common shares to be issued under the offering have been priced at $3.25 per share and the flow-through common shares have been priced at $4.38 per share. The offering is expected to close on or before May 15, 2017, and is subject to regulatory approval.
The company's major shareholder, Dermot Desmond, has advised the company that he will be subscribing for shares under the placement on a pro rata basis to maintain his proportionate ownership in the company.
The company intends to use the gross proceeds from the flow-through portion of the offering to incur Canadian exploration expenses that are flow-through mining expenditures (as such terms are defined in the Income Tax Act (Canada)). The company will renounce such Canadian exploration expenses with an effective date of no later than Dec. 31, 2017.
The proceeds from the common shares issued under the offering will be used in part to finance the company's 2017 exploration and evaluation program on the Kennady North project and for general corporate purposes.
All securities issued in the non-brokered placement and offering will be subject to a four-month hold period.
Shareholders seeking further information about participation in the placement should contact the company.
About Kennady Diamonds Inc.
Kennady Diamonds controls 100 per cent of the Kennady North diamond project located in Canada's Northwest Territories.
Kennady North is adjacent to the Gahcho Kue diamond mine, a joint venture between De Beers Canada (51 per cent) and Mountain Province (49 per cent), which started production in late 2016. Kennady is focused on expanding its high-grade diamond resources along the Kelvin-Faraday kimberlite corridor, as well identifying new kimberlites outside of the corridor. To date, an indicated resource of 13.62 million carats of diamonds contained in 8.50 million tonnes of kimberlite, with a grade of 1.60 carats per tonne and an average value of $63 (U.S.) per carat, has been defined for the Kelvin kimberlite using a one-millimetre diamond bottom cut-off size.
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