Bottin International Investments, which holds majority stake in Kennady Diamonds, is subscribing for 538,000 common shares under the placement for proceeds of around C$3.5m ($3.17m).
Kennady Diamonds intends to use the proceeds to finance the 2014 summer/fall exploration activities as well as for general corporate purposes.
The company said: "Securities issued under the Placement will be subject to a four month hold period."
Subject to regulatory approval, the placement process is scheduled to be concluded by 30 September 2014.
Kennady Diamonds owns the Kennady North diamond project, which is located to the north, west and south of the Gahcho Kué diamond mine being developed by De Beers and Mountain Province Diamonds.
