Kennady Diamonds Announces Terms of Private Placement

TORONTO, July 23, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) today announced the terms of the previously announced non-brokered private placement ("Placement"). The Company plans to raise up to C$1.5M through a combination of common shares and flow-through common shares. The common shares to be issued under the Placement have been priced at $1.50 per share and the flow-through common shares have been priced at C$1.80 per share.  The Placement is subject to regulatory approval.

Kennady Diamonds' major shareholder, Bottin International Investments Ltd. (controlled by Dermot Desmond), is subscribing for 250,000 common shares under the Placement, for gross proceeds of C$370,000.

Combined with funds currently available in treasury, the proceeds from this Placement will be sufficient to fund the 2013 summer exploration program, which is currently underway, and other working capital requirements. The Placement is expected to close on or before July 31, 2013.

About Kennady Diamonds
Kennady Diamonds controls 100 percent of the Kennady North project which comprises thirteen leases and claims located immediately to the west and north of the four leases controlled by the Gahcho Kué Joint Venture between De Beers Canada and Mountain Province located in Canada's Northwest Territories.

Exploration at Kennady North has resulted in the discovery of the diamond-bearing Kelvin, Faraday and Hobbes kimberlites. The number of diamonds recovered from these kimberlites and the size-frequency distribution indicate that they may be of comparable grade to the 5034 (1.77 carats per tonne) and Hearne (2.10 carats per tonne) kimberlites at the Gahcho Kué JV. Exploration samples from Kelvin and Faraday returned a relatively large number of macro diamonds with the two largest being a 0.4 carat diamond from Faraday and a 0.09 carat diamond from Kelvin.

Kennady Diamonds aims to identify a minimum 5 million tonne resource along the Kelvin - Faraday kimberlite corridor and also to identify new kimberlites outside of the corridor.

Qualified Person
This news release has been prepared under the supervision of Carl G. Verley, P.Geo., who serves as the qualified person under National Instrument 43-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING INFORMATION

This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the Company's strategic plans, future operations, future work programs and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: Kennady Diamonds Inc.

Kennady Diamonds Inc.
Patrick Evans, President and CEO
[phone]

[email protected]