Kennady Diamonds Closes C$5 million Bought-deal Private Placement
Shares Issued and Outstanding: 22,459,330
TORONTO, Oct. 25, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the closing of the previously announced bought-deal private placement of flow-through common shares ("Flow-Through Shares"), for gross proceeds of C$5 million.
Dundee Securities Ltd., on behalf of a syndicate including Salman Partners Inc. (the "Underwriters"), sold 910,000 Flow-Through Shares of the Company at a price of C$5.50 per Flow-Through Share, by way of a bought-deal private placement. The Underwriters exercised their option to increase the private placement from C$4 million to C$5 million. The Underwriters received a cash commission of 5% of the gross proceeds. The Flow-Through Shares are subject to a four month hold, expiring February 26, 2014.
Proceeds of the private placement will be used for Canadian Exploration Expenses within the meaning of the Income Tax Act (Canada) related to the Company's Canadian exploration projects. The Company will renounce such Canadian Exploration Expenses with an effective date of no later than December 31, 2013.
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