Kennady Diamonds raises $2.29 million from private placement

Kennady Diamonds Inc. announced the closing of the previously announced non-brokered private placement of flow-through common shares for aggregate gross proceeds of $2,290,483.75. A finder's fee equal to 5 percent of the proceeds has been paid to Dundee Securities Ltd. The Company has issued 398,345 flow-through common shares at a price of $5.75.

The money will be used to fund an expanded 2014 exploration program at its Kennady North diamond project in Canada’s Northwest Territories. The project comprises 13 leases and claims located immediately to the north and west of the four leases controlled by the Gahcho Kué joint venture between De Beers Canada and Mountain Province.

A 5,000 meter drill program conducted during the winter/spring of 2013 returned an exceptional sample grade of 8.44 carats per tonne. The largest three diamonds recovered were a 2.48 carat off-white transparent octahedral, a 0.90 carat off-white transparent irregular, and a 0.75 carat off-white transparent octahedral. The recovery of diamonds of this size and quality from a 1.1 tonne sample is very encouraging.