Mountain Province Gets Approval for Kennady Deal

RAPAPORT... Mountain Province will move forward with its acquisition ofKennady Diamonds, after both parties' shareholders approved the deal at aspecial meeting.In January, Mountain Province announced its intention torepurchase the Kennady exploration project in Canada after a five-year separation."The Kennady acquisition notably strengthens MountainProvince's asset base," Mountain Province CEO David Whittle said. "The Kelvinand Faraday resources offer a compelling opportunity to not only extend life ofmine at Gahcho Ku?(C), but to potentially enhance the cash-flow profile of thecurrent mine plan."The deal will also provide Kennady shareholders with apremium on their share price, as well as greater share liquidity, said Kennady director ClaudiaTornquist.Gahcho Ku?(C) is a partnership between De Beers, which holds a 51% stake, and Mountain Province, which owns the remaining 49%. In March, the companies signed a non-binding agreement to share ownership of the Kennady project as well by incorporating it into the adjacent Gahcho Ku?(C) asset. That arrangement is dependent on Mountain Province getting approval for the Kennady takeover, the partners said.The transaction still awaits final consent at anOntario Supreme Court of Justice hearing, which is scheduled for April 11, withthe closing of the deal slated for April 13.