Kennady Diamonds increases private placement of stock to C$13 million

Shares sold in deal to finance exploration, general corporate purposes

By Devika Patel

Knoxville, Tenn., Oct. 16 - Kennady Diamonds Inc. said it increased its non-brokered private placement of stock to C$9 million from C$8 million. The deal was announced Oct. 7 and was previously increased from C$7 million on Oct. 10. The company will also raise C$4 million through a syndicate of underwriters led by Dundee Securities Ltd. and including Salman Partners Inc. The underwriters have a C$1 million greenshoe for the deal, which priced Oct. 9.

The company is selling common shares at C$4.75 apiece, a 5% discount to the Oct. 8 closing share price of C$5.00. It also is selling flow-through common shares at C$5.50 apiece, a 10% premium to the Oct. 8 closing share price.

Settlement of the non-brokered sale is expected Oct. 17. The brokered offering will settle on Oct. 25.

Proceeds will be used for exploration and general corporate purposes.

The diamond exploration company is based in Toronto.

Issuer:	Kennady Diamonds Inc.
Issue:	Common shares, flow-through common shares
Amount:	C$13,004,000
Greenshoe:	C$1,001,000
Warrants:	No
Agents:	Non-brokered (for C$9 million), Dundee Securities Ltd. (lead), Salman Partners Inc. (for C$4,004,000)
Announcement date:	Oct. 7
Pricing date:	Oct. 9
Upsized:	Oct. 10, Oct. 16
Settlement dates:	Oct. 17 (for C$9 million), Oct. 25 (for C$4,004,000)
Stock symbol:	TSX Venture: KDI
Stock price:	C$5.00 at close Oct. 8
Market capitalization:	C$105.36 million
Common stock
Price:	C$4.75
Flow-through stock
Price:	C$5.50

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