Mountain Province Diamonds Inc has received the conditional approval of the TSX Venture Exchange for the listing of Kennady Diamonds Inc. The listing of Kennady Diamonds is being sought as part of the previously announced plan of arrangement, pursuant to which the company will transfer the wholly-owned Northwest Territories diamond property, the Kennady North project, to Kennady Diamonds, the company said.
"We expect to satisfy the remaining conditions prior to the end of June, following which we will set the record date (the date established for the purposes of determining the Mountain Province shareholders entitled to receive the distribution of Kennady Diamonds shares), the effective date (the date on which the arrangement will become effective), and listing date (the date on which the shares of Kennady Diamonds will commence trading)," Mountain Province President and CEO Patrick Evans said in a statement.
Upon completion of the arrangement, Mountain Province will transfer the Kennady North property and working capital in the amount of C$3 million (about $2.9 million) to Kennady Diamonds. Mountain Province will distribute 100 percent of the shares of Kennady Diamonds to Mountain Province shareholders on the basis of one Kennady Diamond share for every five shares of Mountain Province held by shareholders on the record date.
"The proposed spin-out of Kennady North is intended to deliver greater value to Mountain Province shareholders by unlocking the value of this highly prospective Canadian diamond project. The transaction will also enable Mountain Province to focus on its flagship Gahcho Kué JV with De Beers while Kennady Diamonds focuses on advancing the 123 square-kilometre Kennady North project," Evans said.
The Kennady North project comprises 13 leases and claims located to the west and north of the four leases controlled by the Gahcho Kué Joint Venture between De Beers Canada Inc (51 percent) and Mountain Province (49 percent) located in Canada's Northwest Territories.