Shareholders in Mountain Province Diamonds voted 99.5 percent in favor of the proposed spin-off of Kennady Diamonds Inc., which is subject to final court and regulatory approvals. An application has been submitted to the TSX Venture Exchange for the listing of the common shares of Kennady Diamonds under the trading symbol KDI. Mountain Province anticipates receiving final court approval during the first week of May.
Under the plan of arrangement, the company’s Kennady north project will be transferred to Kennady Diamonds together with working capital in the amount of $3 million. Mountain Province intends distributing the shares to its own shareholders on the basis of one Kennady Diamonds share for every five shares of Mountain Province as of the effective date, which will be set following receipt of final court and regulatory approval.