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Mountain Province Gets Approval for Kennady Deal
Apr 10, 2018 8:24 AM
By Rapaport News
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RAPAPORT... Mountain Province will move forward with its acquisition of
Kennady Diamonds, after both parties’ shareholders approved the deal at a
special meeting.
In January, Mountain Province announced its intention to
repurchase the Kennady exploration project in Canada after a five-year separation.
“The Kennady acquisition notably strengthens Mountain
Province’s asset base,” Mountain Province CEO David Whittle said. “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.”
The deal will also provide Kennady shareholders with a
premium on their share price, as well as greater share liquidity, said Kennady director Claudia
Tornquist.
Gahcho Kué is a partnership between De Beers, which holds a 51% stake, and Mountain Province, which owns the remaining 49%. In March, the companies signed a non-binding agreement to share ownership of the Kennady project as well by incorporating it into the adjacent Gahcho Kué asset. That arrangement is dependent on Mountain Province getting approval for the Kennady takeover, the partners said.
The transaction still awaits final consent at an
Ontario Supreme Court of Justice hearing, which is scheduled for April 11, with
the closing of the deal slated for April 13.
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Tags:
acquisition, Claudia Tornquist, David Whittle, De Beers, Faraday, Gahcho Kué, kelvin, kennady, Kennady Diamonds, mountain province, Ontario Supreme Court of Justice, Rapaport News
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