The money is being raised via the placement of common shares at a price of C$3.40 per common share.
Bottin (International) Investment, the major shareholder of Kennady Diamonds, will subscribe for shares under the placement, which is subject to regulatory approval.
Kennady will use the proceeds from the placement to fund its exploration, evaluation and permitting programs and for general corporate purposes.
The program includes exploration, delineation, infill and geotechnical drilling at the Kelvin kimberlite as well as exploration and delineation drilling at the Faraday kimberlites.
It also includes processing of core samples and the Kelvin bulk sample, valuation of the bulk sample diamond parcel.
Kennady Diamonds controls 100% of the Kennady North diamond project situated in Canada’s Northwest Territories.
The company intends to identify a resource along the Kelvin – Faraday kimberlite corridor of between a 12 and 15 million tonnes at a grade of between 2 and 2.5 carats per tonne.
It also aims to find new kimberlites outside of the corridor. The Kelvin – Faraday corridor is a target for additional exploration.
