Sale of two types of stock funds Kennady North Project through 2017
By Devika Patel
Knoxville, Tenn., Sept. 16 – Kennady Diamonds Inc. said it will raise about C$48 million in a brokered and non-brokered private placement of stock. It also said it has received expressions of interest from investors to sell about another C$13 million of stock on a non-brokered basis.
The company will sell common shares at C$2.75 apiece, an 8.94% discount to the Sept. 15 closing share price of C$3.02. It also may sell flow-through shares at C$3.40 per share, a 12.58% premium to the Sept. 15 closing share price.
Dermot Desmond potentially will participate beyond his current 24% pro-rata share.
Proceeds will be used to fund the Kennady North Project until the end of 2017 and for general corporate purposes.
“Over the past three years we have been exploring and evaluating the kimberlites at Kennady North and are on track to release the first resource statement for the Kelvin kimberlite before the end of 2015,” president and chief executive officer Patrick Evans said in a press release. “Based on the excellent results of the recent Kelvin bulk sample as well as the encouraging exploration results from the Faraday and MZ kimberlites, we plan to initiate a preliminary economic assessment in early 2016 for a potential first mine at Kelvin.
“We expect this to be followed by a definitive feasibility study in H2 2016, while we continue evaluating the Faraday, MZ and Doyle kimberlites. The funds raised through this placement are expected to be sufficient to fund all activities to the end of 2017 when we expect to be in a position to make a development decision at Kennady North,” Evans concluded in the release.
The diamond exploration company is based in Toronto.
| Issuer: | Kennady Diamonds Inc.
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| Issue: | Common stock, flow-through stock
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| Amount: | C$61 million (approximate)
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| Warrants: | No
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| Agent: | Non-brokered and brokered
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| Investor: | Dermot Desmond
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| Pricing date: | Sept. 16
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| Stock symbol: | TSX Venture: KDI
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| Stock price: | C$3.02 at close Sept. 15
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| Market capitalization: | C$89.05million
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| Common shares
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| Price: | C$2.75
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| Flow-through shares
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| Price: | C$3.40
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