DIAMONDS: Kennady arranges $48M private placement

NORTHWEST TERRITORIES – Kennady Diamonds of Toronto announced a private placement that will raise $48 million through the issuance of common and flow-through shares. The shares are priced at $2.75 and $3.40, respectively. The money will fund activities at Kennady North through 2017.

The company says private investors have expressed an interest in an overallotment of a further $13 million. Dermot Desmond, the owner of 24% of the company, will participate in the placement to maintain his interest.

Kennady president and CEO Patrick Evans said in a release that the first resource estimate for Kelvin kimberlite will be published before the end of this year. A preliminary economic assessment will be undertaking early in 2016, followed by a definitive feasibility study for a mine at Kelvin in the second half of next year. The company is also evaluating the Faraday, MZ and Doyle kimberlites.

The results of the latest bulk sample from the Kelvin kimberlite are available at KennadyDiamonds.com.