Kennady Diamonds Announces Private Placement
Shares Issued and Outstanding: 19,693,609
TORONTO, Oct. 7, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) today announced that the Company is undertaking a private placement to raise approximately C$5 million through the placement of a combination of common shares and flow-through common shares.
The Company's major shareholders have advised that they will be subscribing for common shares under the private placement.
The proceeds of the private placement will be used to support the Company's planned 2014 winter exploration program and for general corporate purposes. The exploration program includes 10,000 meters of delineation drilling at the Kelvin and Faraday kimberlites, as well as testing of a number of new kimberlite targets at the Kennady North project. The Company also plans to recover a mini-bulk sample of between 25 and 30 tonnes from the Kelvin kimberlite to support preliminary diamond revenue modeling.
The planned 2014 winter drill program follows the successful 2013 summer drill program which resulted in the recovery of 3.45 tonnes of kimberlite from the northwest lobe of the Kelvin kimberlite. The kimberlite is currently being processed for diamond recoveries by caustic fusion at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council. The results are expected to be announced in November 2013.
The terms of the private placement, which are subject to regulatory approval, will be announced shortly. Shareholders seeking further information should contact Kennady Diamonds at email@example.com or the Company president and CEO, Patrick Evans, at (416) 670-5114.
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.
A 5,000 meter drill program conducted during the winter 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.
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.
This news release has been prepared under the supervision of Carl G. Verley, P.Geo., who serves as the qualified person under National Instrument 43-101.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.
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.For further information:
Kennady Diamonds Inc.
Patrick Evans, President and CEO