Shares Issued and Outstanding: 22,857,675
TORONTO, Sept. 16, 2014 /CNW/ -Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) today announced that the Company is arranging a non-brokered private placement (the "Placement") to raise approximately C$5M through the issuance of common shares at a price of C$6.50 per share. The Placement is expected to close on or about September 30, 2014, and is subject to regulatory approval.
Kennady Diamonds' major shareholder, Bottin International Investments Ltd., is subscribing for 538,000 common shares under the Placement for gross proceeds of approx. C$3.5M.
The proceeds from the Placement will be used to fund the Company's expanded 2014 summer/fall exploration program and for general corporate purposes. Securities issued under the Placement will be subject to a four month hold period.
About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located immediately to the north, west and south of the Gahcho Kué diamond mine currently under development by De Beers and Mountain Province Diamonds.
Kennady Diamonds aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between 7 and 10 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.
An 8,500 meter drill program conducted in 2013 returned exceptional sample grades. A 4.3 tonne sample from the Kelvin kimberlite retuned a grade of 5.38 carats per tonne. An approx. one tonne sample from the Faraday kimberlite returned a sample grade of 5.10 carats per tonne. The three largest diamonds recovered from the Kelvin kimberlite were a 2.48 carat off-white transparent octahedral, 1.06 carat off-white broken aggregate and a 0.90 carat off-white transparent irregular. The recovery of diamonds of this size and quality from a 4.3 tonne sample is very encouraging.
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, (416) 640-1111, [email protected]