Shares Issued and Outstanding: 22,459,330
TSX-V: KDI
TORONTO, Dec. 19, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI)
today announce that the Company has arranged a C$2.29M non-brokered
private placement ("Placement") of flow-through common shares at a
price of $5.75 per share, which represents an approximate 20 percent
premium over the volume weighted share price on December 18, 2013. The
common shares issued under the Placement are being sold to
institutional investors on a flow-through basis pursuant to the Income
Tax Act (Canada). A finder's fee equal to 5 percent of the proceeds
will be paid to Dundee Securities Ltd.
The proceeds from the Placement will be used to fund an expanded 2014
exploration program at the Company's Kennady North diamond project
located in Canada's Northwest Territories.
The Placement is subject to regulatory approval. The securities issued
under the Placement will be subject to a four month hold period.
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About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North project
which comprises thirteen leases and claims located immediately to the
north and west of the four leases controlled by the Gahcho Kué Joint
Venture between De Beers Canada (51%) and Mountain Province (49%)
located in Canada's Northwest Territories.
Kennady Diamonds aims to identify a resource along the Kelvin - Faraday
kimberlite corridor of between a 5 and 8 million tonnes and also to
identify new kimberlites outside of the corridor. This tonnage estimate
is based on the drilling completed to date. The potential quantity is
conceptual in nature as there has been insufficient drilling to define
a mineral resource and it is uncertain if further exploration will
result in the target being delineated as a mineral resource.
A 5,000 meter drill program conducted during the winter/spring of 2013
returned an exceptional sample grade of 8.44 carats per tonne. The
largest three diamonds recovered were a 2.48 carat off-white
transparent octahedral, a 0.90 carat off-white transparent irregular,
and a 0.75 carat off-white transparent octahedral. The recovery of
diamonds of this size and quality from a 1.1 tonne sample is very
encouraging.
A 3,848 meter drill program conducted at the Kelvin kimberlite during
the summer of 2013 returned an outstanding sample grade of 4.56 carats
per tonne. The largest three diamonds recovered were a 1.06 carat
off-white transparent broken aggregate, a 0.83 carat white/colorless
transparent octahedral and a 0.53 off-white transparent octahedral. The
combined 2013 sample grade for the Kelvin kimberlite is 5.38 carats per
tonne. These are amongst the highest diamond sample grades ever
recorded.
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FORWARD LOOKING INFORMATION
This news release includes certain information that may constitute
"forward-looking information" under applicable Canadian securities
legislation. Forward-looking information includes, but is not limited
to, the Company's strategic plans, future operations, future work
programs and objectives. Forward-looking information is necessarily
based upon a number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties, and
other factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on
forward-looking information. All forward-looking information contained
in this press release is given as of the date hereof and is based upon
the opinions and estimates of management and information available to
management as at the date hereof. The Company disclaims any intention
or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE Kennady Diamonds Inc.
