|
RAPAPORT... Kennady Diamonds Inc. announced the terms of a non-brokered private placement whereby the company plans to raise approximately $7 million by issuing a combination of common shares and flow-through common shares. Earlier in the week, the company initially believed it could raise almost $5 million.
In the revised plan, the common shares to be issued under the non-brokered placement have been priced at $4.75 per share and the flow-through common shares have been priced at $5.50 per share. The non-brokered placement is expected to close on or about October 17, and is subject to regulatory approval.
Concurrently, Kennady entered into an agreement with Dundee Securities Ltd. on behalf of a syndicate including Salman Partners Inc. under which the underwriters have agreed to purchase 728,000 flow-through common shares on a "bought deal" basis for proceeds of $4 million. The underwriters have been granted the option to purchase up to an additional 182,000 flow-through shares for additional proceeds of $1 million.
The company intends to use proceeds from the offerings for exploration expenses and its 2014 winter exploration program (10,000 meters of drilling), the 2014 summer exploration program (5,000 meters of drilling) and general corporate purposes.
|