Canadian Mining Journal

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DIAMONDS: Mountain Province makes friendly bid for Kennady



Bulk sampling is complete are the Kelvin and Faraday kimberlites of Kennady Diamonds. (Image: Kennady Diamonds)

TORONTO – Mountain Province Diamonds and Kennady Diamonds have entered into a friendly and definitive agreement whereby Mountain Province will acquire all the issued and outstanding shares of Kennady. The latter was spun out of Mountain Province in 2012.

Kennady shareholders will receive 0.975 of a Mountain Province share from each Kennady share they hold. That represents a value of $3.46 per Kennady share or a total value of about $176 million for the deal. Upon completion, the combined company will be held 76% by Mountain Province shareholders and 24% by Kennady investors.

Mountain Province is the 49% owner of the Gahcho Kue diamond mine (with De Beers Canada) in the Northwest Territories. By adding Kennady’s Kelvin kimberlite and the Faraday kimberlite cluster to its portfolio, Mountain Province is adding growth opportunities to its future. The maiden Kelvin resource estimate is for 13.62 million carats. The Faraday cluster contains perhaps another 5.02 million carats. Both areas have been bulk sampled. There is additional potential at Kennady’s Doyle and MZ kimberlites, as well as more than 67,000 hectares of highly prospective ground adjacent to the  Gahcho Kue mine.

Both boards of directors are recommending the transaction to their respective shareholders.

Check both companies’ websites – www.KennadyDiamonds.com and www.MountainProvince.com – for details.