Mountain Province Diamonds to Acquire Kennady Diamonds

Mountain Province Diamonds Inc. (TSX:MPVD) and Kennady Diamonds Inc. (TSXV:KDI) announced that they have entered into a definitive arrangement agreement pursuant to which Mountain Province will acquire all of the issued and outstanding common shares of Kennady.
As quoted in the press release:

Under the terms of the Transaction, Kennady shareholders will receive 0.975 (the “Exchange Ratio”) of a Mountain Province common share (a “Mountain Province Share”) for each Kennady common share (a “Kennady Share”), representing the equivalent of C$3.46 per Kennady Share, based on the closing price of Mountain Province Shares on the TSX on January 26, 2018.  This Exchange Ratio represents a premium of 26% to Kennady’s closing price and a premium of 15% based on the 20-day volume-weighted-average-price of Mountain Province Shares on the TSX and Kennady Shares on the TSX-V, both as of close on January 26, 2018.  The implied equity value for Kennady based on the Exchange Ratio is approximately C$176 million.  Upon completion of the Transaction, the combined company will be owned approximately 76% by Mountain Province shareholders and 24% by Kennady shareholders.

David E. Whittle, interim president and CEO of Mountain Province, commented:

The Kennady assets are a strong complement to Mountain Province’s interest in the Gahcho Kué project, significantly adding to our attributed resource base. Kennady’s exploration efforts have been very successful and we have high confidence in our ability to continue that success, not only through expanding the existing resources at Kelvin and Faraday but through the potential for further discoveries, not just in the Kelvin-Faraday corridor but elsewhere across the property.

Click here to read the full Mountain Province Diamonds Inc. (TSX:MPVD) press release.