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Shares Issued and Outstanding: 47,381,970
TSX-V: KDI
VANCOUVER, April 28, 2017 /CNW/ - Kennady Diamonds Inc.
("Kennady Diamonds" or the "Company") (TSX-V: KDI) is pleased to
announce the terms of a non-brokered private placement (the
"Offering") whereby the Company plans to raise approximately
C$10,000,000 through the issuance of
a combination of common shares and flow-through common shares. The
common shares to be issued under the Offering have been priced at
$3.25 per share and the flow-through
common shares have been priced at C$4.38 per share. The Offering is expected to
close on or before May 15, 2017, and
is subject to regulatory approval.
The Company's major shareholder, Mr. Dermot Desmond, has advised the Company that he
will be subscribing for shares under the Placement on a pro-rata
basis to maintain his proportionate ownership in the Company.
The Company intends to use the gross proceeds from the
flow-through portion of the Offering to incur Canadian Exploration
Expenses that are Flow-Through Mining Expenditures (as such terms
are defined in the Income Tax Act (Canada)). The Company will renounce such
Canadian Exploration Expenses with an effective date of no later
than December 31, 2017.
The proceeds from the common shares issued under the Offering
will be used in part to fund the Company's 2017 exploration and
evaluation program on the Kennady North Project, and for general
corporate purposes.
All securities issued in the non-brokered Placement and Offering
will be subject to a four month hold period.
Shareholders seeking further information about participation in
the Placement should contact the Company at the telephone number or
email address below.
About Kennady Diamonds
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. To date an indicated resource of 13.62 million carats
of diamonds contained in 8.50 million tonnes of kimberlite, with a
grade of 1.60 carats per tonne and an average value of US$63 per carat has been defined for the Kelvin
kimberlite using a 1mm diamond bottom cutoff size. The Kelvin –
Faraday corridor is also a target for further exploration.
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.