RAPAPORT... Mountain Province Diamonds Inc. announced that, subject to final approval of the TSX Venture Exchange, shares of Kennady Diamonds Inc. will commence regular trading on July 10, 2012. Mountain Province will transfer its Kennady North diamond property and working capital in the amount of approximately $3 million to Kennady Diamonds and distribute the shares of Kennady Diamonds to Mountain Province shareholders on the basis of one Kennady Diamonds share for every five shares of Mountain Province held by shareholders.
Mountain Province's shareholders voted in favor of this plan on April 25, and the court issued a final order approving the arrangement on April 30. The arrangement also received conditional approval of the Toronto Stock Exchange on May 25, and the TSX Venture Exchange conditionally approved the listing of the Kennady Diamonds shares on June 8.
Once Kennady Diamonds is listed on the TSX-V, the company intends to pursue a listing on the OTCQX in the United States.
The Kennady North project is adjacent to the Gahcho Kue joint venture that Mountain Province owns with De Beers in Canada's Northwest Territories. The Gahcho Kue project consists of a cluster of four diamondiferous kimberlites, three of which have a probable mineral reserve of 31.3 million tonnes grading 1.57 carats per tonne for total diamond content of 49 million carats.