Canadian diamond exploration firm Kennady Diamonds has closed C$4m ($3.06m) non-brokered private placement.

About 1,176,735 common shares were issued with each share valued at $3.40 per share. They are subject to a four month hold period ending on 13 December 2015.

The company will use proceeds of the private placement for its 2015 exploration program at the Kennady North project.

The proceeds will also be used for processing of the Kelvin bulk sample, valuation of the bulk sample diamonds and for general working capital.

The Kennady North project is located adjacent to the De Beers/Mountain Province Diamonds Gahcho Kué diamond mine  in Canada’s Northwest Territories.

It hosts four known kimberlites that include Kelvin, Faraday, Doyle and MZ and several other geophysical exploration targets.

Kennady has recently drilled 92m of kimberlite at Kelvin target. It is the third time the company has recovered a diamond during core logging at Kennady North.

Earlier this year, the company intersected kimberlite of around 32m, as part of the Faraday Spring delineation drill program at the project.