Mountain Province Acquires Kennady Project

RAPAPORT... Mountain Province Diamonds will purchase exploration group KennadyDiamonds in an all-share deal, reuniting two Canadian companies that split fiveyears ago. For each Kennady share, its investors will receive 0.975 ofa Mountain Province share, valuing Kennady at $142.7 million (CAD 176 million),the miners said Monday. Once the transaction is complete, Mountain Province shareholderswill own 76% of the combined company, while Kennady shareholders will own 24%. Mountain Province spun off its Kennady North explorationproject in Canada's Northwest Territories as a separate company, KennadyDiamonds, in April 2012. At the time, Mountain Province president Patrick Evanssaid the deal's purpose was maximizing the value of Kennady North, whileenabling Mountain Province to focus on developing its Gahcho Ku?(C) mine. Theexecutive left Mountain Province last year to join Dominion Diamond Corporationas CEO. In the Monday statement, Mountain Province CEO David Whittlesaid the Kennady assets - namely its Kelvin and Faraday kimberlites - stronglycomplemented the Gahcho Ku?(C) project. "Kennady's exploration efforts have been very successful,and we have high confidence in our ability to continue that success, not onlythrough expanding the existing resources at Kelvin and Faraday, but through thepotential for further discoveries, not just in the Kelvin-Faraday corridor, butelsewhere across the property," he said.