VANCOUVER (miningweekly.com) – Overwhelming majorities of Mountain Province Diamonds and Kennady Diamonds shareholders have approved the proposed merger of the companies.
TSX- and Nasdaq-listed Mountain Province said that about 93% of the shareholders present in person or represented by proxy at the shareholder meeting on Monday and about 90% of all minority shareholders of the company present in person or represented by proxy voted in favour of the share issuance motion. That represented about 78% and 55%, respectively, of all issued and outstanding Mountain Province shares entitled to vote on the resolution.
At the Kennady shareholder meeting, the special resolution authorising the arrangement was approved by about 99% of the shareholders and about 98% of the minority shareholders of Kennady present in person or represented by proxy at the Kennady meeting. The shareholders of Kennady who participated in the vote represented about 66% and 33%, respectively, of all issued and outstanding shares of Kennady entitled to vote on the arrangement resolution.
"The Kennady acquisition notably strengthens Mountain Province’s asset base. The Kelvin and Faraday resources offer a compelling opportunity to not only extend life-of-mine at Gahcho Kué, but to potentially enhance the cash flow profile of the current mine plan,” interim president and CEO David Whittle said in a statement.
Pending Ontario Superior Court of Justice approval, slated for a hearing on April 11, and other approvals are obtained and all conditions precedent are satisfied or waived, Mountain Province and Kennady currently anticipate the closing of the arrangement to occur on April 13.
Mountain Province first announced spinning out its Kennady North project into a newly listed public company late in 2011. Since Kennady Diamonds was incorporated in February 2012, Kennady has outlined diamondiferous bodies that contain indicated resources of 13.62-million carats and inferred resources of 5.02-million carats.
These are spread over the Kelvin kimberlite, which hosts indicated resources of 13.62-million carats – at an average grade of 1.60 ct/t and an average value of $63/ct, as estimated by a 2016 bulk sample – and the Faraday kimberlite cluster, which hosts inferred resources of 5.02-million carats at an average grade of 1.54 ct/t and average value of $98/ct, as estimated by a 2017 bulk sample.
Mountain Province believes there is significant upside to further grow resources at both Kelvin and Faraday and to develop potential resources at the Doyle and MZ kimberlites. The deal will add about 67 164 ha of highly prospective and 100%-owned exploration ground strategically surrounding Mountain Province's flagship 49%-owned Gahcho Kué mine, which is operated by De Beers Canada, which also owns the balance.