Kennady Forms Special Committee to Evaluate Strategic Alternatives
Toronto, Ontario: March 17, 2017 – Kennady Diamonds Inc. (“Kennady”, the “Company”) (TSX-V: KDI) today announced that the Board of Directors of the Company have formed a special committee of independent directors (the “Special Committee”) in response to discussions with certain interested parties regarding a potential strategic transaction. The Special Committee, with the assistance of Minvisory Corp. as its financial advisor and Fasken Martineau DuMoulin LLP as its legal advisor, and the Company will consider and evaluate various strategic alternatives to maximize shareholder value, including continuing to execute on its existing business plan.
While the Company considers all options available to it at this time, no formal offers have been received and no agreement has been reached with any third party regarding a potential strategic transaction.
The Company does not intend to make further comment in regards to this process except as required by applicable securities laws or the policies of the TSX Venture Exchange. No assurance can be given that any transaction will be announced. Furthermore, the Company cautions that there is no guarantee the Company’s discussions will result in a transaction or if a transaction is undertaken, as to its terms or timing.
About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located in Canada’s Northwest Territories. Kennady North is adjacent to the Gahcho Kué Diamond Mine, a joint venture between De Beers Canada (51%) and Mountain Province (49%), which started production in late 2016.
Kennady is focused on expanding its high-grade diamond resources along the Kelvin – Faraday kimberlite corridor, as well identifying new kimberlites outside of the corridor. To date an indicated resource of 13.62 million carats of diamonds contained in 8.50 million tonnes of kimberlite, with a grade of 1.60 carats per tonne and an average value of US$63 per carat has been defined for the Kelvin kimberlite using a 1mm diamond bottom cutoff size. The Kelvin – Faraday corridor is also a target for further exploration.
This news release has been prepared by Dr. Rory Moore, P.Geo., President and CEO of Kennady Diamonds. The technical contents of this news release have been reviewed and approved by Dr. Tom McCandless, P. Geo., an independent director of Kennady Diamonds and Qualified Person under National Instrument 43-101.
For further information, please contact:
Kennady Diamonds Inc.
Rory O. Moore, President and CEO (416) 640-1111