The company will use the proceeds of the private placement to support planned 2014 winter exploration program and for general corporate purposes.
In addition to testing of a number of new kimberlite targets at the Kennady North project, the exploration program comprises 10,000m of delineation drilling at the Kelvin and Faraday kimberlites.
Additionally, the company is planning to recover a mini-bulk sample, to support preliminary diamond revenue modeling, between 25 and 30 tonnes from the Kelvin kimberlite.
The company recovered 3.45 tonnes of kimberlite from the northwest lobe of the Kelvin kimberlite during its 2013 drill program.
Currently, the kimberlite is being processed at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council for diamond recoveries by caustic fusion, with results due to be announced in November 2013.
