Toronto (pcJ News Briefs) – Kennady Diamonds Inc. (TSX-V: KDI) intends to close a non-brokered private placement of common shares at $3.25 per share and flow-through (FT) shares at $4.38 per FT share for gross proceeds of up to $10,000,000. The offering is expected to close on or before May 15, 2017.
Dermot Desmond, the major shareholder of the company, will be subscribing on a pro-rata basis to maintain his proportionate ownership in Kennady Diamonds.
Desmond, through Bottin (International) Investments Ltd., directly and indirectly, controls 11,530,683 common shares or 24.53% of the outstanding shares (as of May 17, 2016).
Proceeds from the flow-through portion will be used to incur Canadian Exploration Expenses that are Flow-Through Mining Expenditures. Proceeds from the common shares issuance will be used in part to fund Kennady Diamonds’ 2017 exploration and evaluation program on the Kennady North Project, and for general corporate purposes.
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located in Canada’s Northwest Territories. Kennady North is adjacent to the Gahcho Kué Diamond Mine, a joint venture between De Beers Canada (51%) and Mountain Province (49%), which started production in late 2016. Kennady is focused on expanding its high-grade diamond resources along the Kelvin – Faraday kimberlite corridor, as well identifying new kimberlites outside of the corridor.
photo credit: Kennady Diamonds