De Beers, Mountain Province May Integrate Kennady Resources into Gahcho Kué JV

Mining and Exploration
16/03/2018 11:41

De Beers and Mountain Province Diamonds - which together operate the Gahcho Kué mine in a joint venture - have signed a a non-binding Memorandum of Understanding (MoU) that considers incorporating properties owned by Kennady Diamonds into the Gahcho Kué mine. All aspects of the plan are at this point contingent, in particular Mountain Province’s proposed acquisition of Kennady Diamonds, but Mountain Province and De Beers will now work towards a definitive agreement based on the MoU, in the event that the former's acquistion is approved. 

“We have been very pleased with the progress of our partnership with Mountain Province in the Gahcho Kué mine", said Kim Truter, Chief Executive - Canada, De Beers Group. Their proposed acquisition of Kennady Diamonds opens up some potential new options for the operation’s future, and while further work would be required on the resource and there would need to be agreement on commercial terms, the signing of this non-binding MoU makes sense for both parties as we consider how our partnership might develop.”

In late January, Mountain Province Diamonds and Kennady Diamonds entered into a friendly and definitive agreement whereby Mountain Province would acquire all the issued and outstanding shares of Kennady, at a premium. Kennady’s maiden resource estimate for its Kelvin kimberlite is for 13.62 million carats. The Faraday kimberlite cluster cluster contains perhaps another 5.02 million carats. Both areas have been bulk sampled. There is additional potential at Kennady’s Doyle and MZ kimberlites, as well as more than 67,000 hectares of highly prospective ground adjacent to the  Gahcho Kué mine.