JOHANNESBURG (miningweekly.com) – Shareholders of TSX- and Nasdaq-listed diamond producer Mountain Province Diamonds and exploration group Kennady Diamonds will, on April 9, take a vote on whether to approve the merger of the companies.
Mountain Province in January signed an arrangement agreement to acquire Kennady in an all-scrip deal worth about C$176-million.
Mountain Province believes there is significant upside to further grow resources at both the Kelvin and Faraday kimberlites and to develop potential resources at the Doyle and MZ kimberlites.
“The deal will add [to Mountain Province’s landholding] 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.”
Meanwhile, Mountain Province will provide financing to Kennady of up to C$10-million through an equity private placement at C$2.50 a share, in multiple tranches, designed to coincide with Kennady's budget for the current work programme.
Kennady, meanwhile, will gain access to Mountain Province’s development, production and marketing expertise and financial strength to enhance the advancement of Kennady’s North project, while generating enhanced exploration upside for the combined assets.