The shareholders of both, Mountain Province Diamonds Inc and Kennady Diamonds Inc. approved the merger of the two companies, with an overwhelming majority, at their respective special meetings, the two Companies said in a joint statement.

The agreement was finalised through several resolutions passed by both Companies “in connection with their proposed business combination to be completed by way of a plan of arrangement”, the statement noted.

David Whittle, Interim President and Chief Executive Officer of Mountain Province, noted: "The Kennady acquisition notably strengthens Mountain Province’s asset base. The Kelvin and Faraday resources offer a compelling opportunity to not only extend life of mine at Gahcho Kué, but to potentially enhance the cash flow profile of the current mine plan. We are deeply grateful for the level of support we have received from our shareholders on this transaction."

Claudia Tornquist, Chair of the Kennady Special Committee stated, "I would like to thank Kennady’s shareholders for their support. The completion of this transaction will provide them with exposure to the world-class Gahcho Kué diamond mine, a premium on Kennady’s share price and greater liquidity for their shares. Mountain Province’s management is very well placed to advance Kennady’s assets and crystallize their value for shareholders."

The plan of arrangement is subject to the satisfaction of several conditions, including the final approval of the Ontario Superior Court of Justice (Commercial List), the hearing for which is scheduled to take place on April 11, 2018.

“Assuming that all approvals are obtained and all conditions precedent are satisfied or waived, Mountain Province and Kennady currently anticipate the closing of the Arrangement to occur on April 13, 2018,” the statement said.

Under the terms, the Companies said, holders of Kennady Shares (other than Mountain Province) will be entitled to receive 0.975 Mountain Province Shares in exchange for each Kennady Share held.

Other details are available on the websites of both Companies.