29 April 2017
Vancouver, B.C. April 28, 2017 - Kennady Diamonds Inc. (“Kennady Diamonds” or the “Company”) (TSXV: 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.