$1.5 Million Private Placement Announced
Shares Issued and Outstanding: 18,700,469
TORONTO, July 15, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI)
is pleased to announce that preparations for the 2013 summer
exploration program at the 100 percent-controlled Kennady North diamond
project in Canada's Northwest Territories are well advanced with
drilling scheduled to commence this week.
The 2,500 meter drill program will focus both on land-based infill
drilling at the north-west lobe of the Kelvin kimberlite as well as
targeting approximately 10 geophysical targets identified to the
northwest, west and east of the Kelvin - Faraday kimberlite corridor.
The exploration program is expected to be completed by the end of the
current quarter. Bathymetric surveys will also be completed over small
lakes in 11 areas within the Kennady North project area. This will
substantially complete bathymetric surveys over the most prospective
areas at Kennady North.
Kimberlite recovered from the 5,000-meter 2013 winter drill program is
currently being processed at the Saskatchewan Research Council
Geoanalytical Laboratories for the recovery of diamonds by caustic
fusion. Results of the analysis are expected to be available during the
current quarter. Combined with the diamond recoveries from previous
drill programs, this data should be sufficient to undertake initial
grade modeling of the Kelvin - Faraday kimberlites.
Kennady Diamonds today also announced that the Company is undertaking a
non-brokered private placement to raise approximately C$1.5 million.
Combined with funds currently available in treasury, the proceeds from
this private placement will be sufficient to fund the 2013 summer
exploration program. Further details of the private placement will be
announced shortly. Kennady Diamonds' major shareholder, Bottin
International Investments Ltd. (controlled by Dermot Desmond), has
indicated support for the private placement and an interest in
participating to maintain their current shareholding.
About Kennady Diamonds
Kennady Diamonds controls 100 percent of the Kennady North project which
comprises thirteen leases and claims located immediately to the west
and north of the four leases controlled by the Gahcho Kué Joint Venture
between De Beers Canada and Mountain Province located in Canada's
Exploration at Kennady North has resulted in the discovery of the
diamond-bearing Kelvin, Faraday and Hobbes kimberlites. The number of
diamonds recovered from these kimberlites and the size-frequency
distribution indicate that they may be of comparable grade to the 5034
(1.77 carats per tonne) and Hearne (2.10 carats per tonne) kimberlites
at the Gahcho Kué JV. Exploration samples from Kelvin and Faraday
returned a relatively large number of macro diamonds with the two
largest being a 0.4 carat diamond from Faraday and a 0.09 carat diamond
Kennady Diamonds aims to identify a minimum 5 million tonne resource
along the Kelvin - Faraday kimberlite corridor and also to identify new
kimberlites outside of the corridor.
This news release has been prepared under the supervision of Carl G.
Verley, P.Geo., who serves as the qualified person under National
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
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