Shares Issued and Outstanding: 27,978,810
TORONTO, Feb. 25, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the closing of the second tranche of the previously announced non-brokered private placement of common shares, for gross proceeds of $10,509,425.05. The Company has issued 2,115,331 common shares at a price of $3.55 per share for gross proceeds of $7,509,425.05, and 600,000 flow-through common shares at a price of $5.00 per share for gross proceeds of $3,000,000.00. The shares are subject to a four month hold period, expiring on June 24, 2015.
Together with the first tranche, completed on February 18, 2015, the Company has issued 4,351,635 common shares and flow-through shares for aggregate gross proceeds of $16,318,304.25. The Company anticipates closing a third tranche of the private placement on or about February 27, 2015.
Proceeds of the private placement will be used primarily for the Company's 2015 winter exploration program at the Kennady North project and for general working capital.
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 10 and 13 million tonnes at a grade of between 2 and 2.5 carats per tonne and also to identify new kimberlites outside of the corridor. The Kelvin – Faraday kimberlite corridor is a target for further exploration. The 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 whether 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, (416) 640-1111, [email protected]