Kennady Diamonds Inc. announced its plans for a non-brokered private placement through the issuance of a combination of common shares and flow-through common shares (the Offering), which is expected to raise approximately C$ 10 million. “The common shares to be issued have been priced at $ 3.25 per share and the flow-through common shares have been priced at C$ 4.38 per share,” Kennady Diamonds elaborated. 

The Company said that Dermot Desmond a major shareholder of the Company has advised it 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)),” Kennady Diamonds explained. “The Company will renounce such Canadian Exploration Expenses with an effective date of no later than December 31, 2017.”

The Company also declared that the proceeds from the common shares issued portion of the Offering will be used in part to fund the Company’s 2017 exploration and evaluation programme 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,” Kennady Diamonds stated.

 The Offering is expected to close on or before May 15, 2017, and is subject to regulatory approval.