Shareholders of the two Canadian mining companies have given their approval by an overwhelming majority for Mountain Province Diamonds to move forward with the acquisition Kennady Diamonds. The proposed deal, first announced in January 2018, will reunite mining operators that divorced some seven years ago. 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 calld the Kelvin and Faraday clusters, which contain indicated resources of 13.62 million carats and inferred resources of 5.02 million carats.
David Whittle, Interim President and Chief Executive Officer of Mountain Province, noted: "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. We are deeply grateful for the level of support we have received from our shareholders on this transaction." He previously stated, "Kennady’s exploration efforts have been very successful and we have high confidence in our ability to continue that success, not only through expanding the existing resources at Kelvin and Faraday but through the potential for further discoveries, not just in the Kelvin-Faraday corridor but elsewhere across the property.”
Mountain Province is the 49% owner of the Gahcho Kue diamond mine (with De Beers Canada) in the Northwest Territories. By adding Kennady’s Kelvin kimberlite and the Faraday kimberlite cluster to its portfolio, Mountain Province is adding growth opportunities to its future. Both the Kelvin and Faraday clusters 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 Kue mine. All-share deal allows Kennady’s current shareholders to retain ongoing exposure to Kennady’s assets as well as gain exposure to Mountain Province’s 49% interest in the operating Gahcho Kué mine. They gain access to free cash flow from Mountain Province to fund exploration at Kennady’s assets, as well as an immediate premium on the Kennady Shares.