Kennady Diamonds Undertaking Private Placement

(IDEX Online News) – Kennady Diamonds Inc. is undertaking a private placement to raise approximately C$5 million ($5.1 million) via the placement of common shares and flow-through common shares.

The company's major shareholders have advised that they will be subscribing for common shares under the private placement.

The proceeds of the private placement will be used to support the company's planned 2014 winter exploration program and for general corporate purposes. The exploration program includes 10,000 meters of delineation drilling at the Kelvin and Faraday kimberlites, as well as testing of a number of new kimberlite targets at the Kennady North project. Kennady Diamonds also plans to recover a mini-bulk sample of 25-30 tonnes from the Kelvin kimberlite to support preliminary diamond revenue modeling.

The planned 2014 winter drill program follows the successful 2013 summer drill program which resulted in the recovery of 3.45 tonnes of kimberlite from the northwest lobe of the Kelvin kimberlite. The kimberlite is currently being processed for diamond recoveries by caustic fusion at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council. The results are expected to be announced in November 2013.

The terms of the private placement, which are subject to regulatory approval, will be announced shortly.

Kennady Diamonds Inc. controls 100 percent of the Kennady North project which comprises 13 leases and claims located immediately to the north and west of the four leases controlled by the Gahcho Kué Joint Venture between De Beers Canada 51 percent and Mountain Province 49 percent located in Canada's Northwest Territories.