Wednesday 23rd September 2020

Resource Clips

$48 million to fund Kennady Diamonds to feasibility, Dermot Desmond in for $12 million

by Greg Klein | October 9, 2015

Big money continues to pour into the Northwest Territories’ Lac de Gras region. A day after Kennady Diamonds TSXV:KDI closed the second tranche of a private placement totalling $48.12 million, Irish billionaire Dermot Desmond announced his contribution of $12.37 million. Between him and a company he owns, Bottin (International) Investments, Desmond’s stake now comes to 24.6% of Kennady’s 46.9 million issued and outstanding shares.

$48-million to fund Kennady Diamonds to feasibility, Dermot Desmond in for another $12 million

With a maiden resource imminent, Kennady Diamonds
talks confidently of taking its project to feasibility.

Bottin also owns 23.27% of Mountain Province Diamonds TSX:MPV, which holds 49% of the Gahcho Kué joint venture, “the world’s largest and richest new diamond mine.” Operator and 51% owner De Beers has the project on schedule for Q3 2016 production, making it the fourth diamond mine in Lac de Gras, a region that already ranks third globally for diamond production by value. Kennady’s Kennady North project surrounds Gahcho Kué on three sides.

Patrick Evans serves as Kennady’s CEO and Mountain Province’s president/CEO.

Just days before closing the private placement, Kennady announced a 2.4-tonne bulk sample from the Kelvin North Lobe graded an average 2.6 carats per tonne. Previous samples from the kimberlite graded 2.74 c/t in June and 2.57 c/t last January.

Four kimberlites on the project have summer/fall drill programs of about 8,000 metres on Kelvin, 12,000 on Faraday, 2,500 on MZ and another 2,500 on Doyle.

Kennady says its latest cash infusion will fund all aspects of the project to the end of 2017, including a preliminary economic assessment, a feasibility study and permitting. The project’s maiden resource should debut this quarter.

Read more about Canadian diamond mining and exploration.

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