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Shares Issued and Outstanding: 50,802,933
TSX-V: KDI
VANCOUVER, May 17, 2017 /CNW/ - Kennady Diamonds Inc.
("Kennady Diamonds", the "Company") (TSX-V: KDI) today announced
the closing of the previously announced non-brokered private
placement of flow-through and non flow-through common shares, for
aggregate gross proceeds of $12,035,422.93 (the "Offering").
The Company has issued 1,538,461 flow-through common shares at a
price of $4.38 per share and
1,629,835 non flow-through common shares at a price of $3.25 per share. The shares are subject to a four
month hold period, expiring September 18,
2017.
Proceeds of 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.
Finders' fees in the aggregate amount of $172,230, and an advisory fee in the amount of
$135,000, were paid on a portion of
the offering.
In connection with the Offering, the Company issued 615,385 non
flow-through common shares to Bottin (International) Investments
Ltd., a related party to the Company. The Company has
determined that exemptions from the various requirements of TSX
Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 ("MI
61-101") are available for the issuance of the common shares to
Bottin. The Company relied on Section 5.5(c) of MI 61-101 for an
exemption from the formal valuation requirement on the basis that
the transaction is a distribution of securities for cash, and
Section 5.7(b) of MI 61-101 for an exemption from the minority
approval requirement as the fair market value of the transaction is
not more than $2,500,000. The Company did file a material change
report disclosing the related party transaction on May 1, 2017,
less than 21 days in advance of the closing of the Offering.
The Company considers the shorter period reasonable and necessary
in the circumstances as the Company needs the proceeds of the
private placement for its ongoing operations.
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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.
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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.