Shares Issued and Outstanding: 22,459,330
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.
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.
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