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Kennady to conduct strategic review
Posted on Monday, 20 March 2017 13:36
Kennady Diamonds, a Canadian miner, has formed a special committee of independent directors to consider options in response to discussions with third parties.
The company has received a number of expressions of interest and is therefore reviewing strategic alternatives in a bid to maximise shareholder value, including continuing to execute its existing business plan.
Kennady cautioned that no formal offers have been received and there can be no guarantee the process will lead to a deal or an agreement being reached.
The Toronto-headquartered business is not the only Canadian diamond miner to be involved in a transaction over the last few days as the Washington Companies submitted a bid to acquire Dominion Diamonds for about USD 1.10 billion in cash yesterday.
Kennady’s exploration focus is on the Kennady North project located next to the De Beers/Mountain Province Diamonds Gahcho Kué diamond mine in Canada’s Northwest Territories.
Shares in the group closed at CAD 3.70 on 17th March, valuing the firm at around CAD 179.04 million.
In the nine months ended 30th September 2016, Kennady posted a loss of USD 30.95 million, compared to a loss USD 26.17 million in the corresponding period of 2015.
To date the company has indicated resource of 13.62 million carats of diamonds contained in 8.50 million tonnes of kimberlite with a grade of 1.50 carats per tonne and an average value of USD 63.00 per carat using a 1mm diamond bottom cutoff size.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 48 deals targeting non-metallic minerals miners announced since the start of 2017.
Among those was Canadian lithium, potassium, borax and other minerals exploration group Lithium Americas, Cayman Islands-based phosphate and potash firm Itafos and UK-headquartered iron ore company for Kodal Minerals.
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