Mountain Province Completes Business Combination with Kennady
Toronto, Ontario (April 13, 2018) – Mountain Province Diamonds Inc. (TSX and NASDAQ: MPVD) (“Mountain Province”) and Kennady Diamonds Inc. (TSX-V: KDI) (“Kennady”) are pleased to announce the successful completion of their previously announced business combination, pursuant to which Mountain Province has acquired all of the common shares of Kennady by way of a court approved plan of arrangement (the “Arrangement”).
Under the terms of the Arrangement, holders of Kennady Shares (other than Mountain Province) received 0.975 Mountain Province Shares in exchange for each Kennady Share held (the “Exchange Ratio”).
“Mountain Province is well positioned for future growth with the completion of this Kennady acquisition, given Kennady’s already-established resource base as well as the success Kennady continues to achieve through its ongoing exploration endeavours”, commented David Whittle, Interim President and Chief Executive Officer of Mountain Province.
With the Arrangement now complete, Mountain Province intends to cause the Kennady Shares to be delisted from the TSX Venture Exchange and Kennady intends to submit an application to the applicable securities regulators to cease to be a reporting issuer and to terminate its public reporting obligations.
Each of the directors and officers of Kennady tendered their resignation effective upon the completion of the Arrangement and have been replaced by David Whittle (Director, Chief Executive Officer) and Perry Ing (Chief Financial Officer and Corporate Secretary).
Further details regarding the Arrangement are set out in the joint management information circular of Mountain Province and Kennady dated March 5, 2018, which is available on Mountain Province’s website at www.mountainprovince.com and on Kennady’s website at
www.kennadydiamonds.com/investors/mpvd-transaction, and on SEDAR under the issuer profiles of Mountain Province and Kennady, respectively, at www.sedar.com.
Early Warning Reporting
By virtue of its acquisition of all of the issued and outstanding Kennady Shares under the Arrangement, Mountain Province is required to file an early warning report pursuant to to National Instrument 62-103– The Early Warning System and Related Take-Over Bid and Insider Reporting Issues (the “Early Warning Report”). A copy of the Early Warning Report will be filed on SEDAR under Kennady’s profile at www.sedar.com in due course.
Prior to the completion of the Arrangement, Mountain Province owned 3,000,000 Kennady Shares, representing approximately 5.6% of the issued and outstanding Kennady Shares. Following completion of the Arrangement, Mountain Province owns 100% of the issued and
outstanding Kennady Shares. The implied equity value for Kennady based on the Exchange Ratio is approximately C$176 million.
About Mountain Province Diamonds Inc.
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada’s Northwest Territories. Gahcho Kué is the world’s largest new diamond mine, consisting of a cluster of four diamondiferous kimberlites, three of which are being developed and mined under the initial 12 year mine plan.
For further information on Mountain Province please contact:
Mr. David Whittle, Interim President and CEO
161 Bay Street, Suite 1410
Toronto, Ontario M5J 2S1
Phone: (416) 361-3562
About Kennady Diamonds Inc.
Kennady Diamonds Inc. owns 100% of the Kennady North diamond project located in Canada’s Northwest Territories. Kennady North is adjacent to the Gahcho Kué diamond mine. Kennady is focused on expanding its high -grade diamond resources along the Kelvin- Faraday kimberlite corridor, as well as 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 and an inferred resource of 5.02 million carats contained in 3.27 million tonnes of kimberlite, with a grade of 1.54 carats per tonne and an average value of US $98 per carat, has been defined for the Faraday kimberlites using a 1mm bottom cutoff size. The Kelvin– Faraday corridor is also a target for further exploration.
For further information on Kennady please contact:
Dr. Rory O. Moore, President and CEO
Phone: (416) 640-1111