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Spec Value Hunter Comment - June 14, 2012: Mountain Province gets land use permit for Kennady North and conditional approval for KDI spinout
 Mountain Province Diamonds Inc has finally received conditional approval for a TSXV listing for Kennady Diamonds Inc which the company plans to spin out as a new company on a 1 KDI for 5 MPV share basis. KDI will own the Kennady North claims plus $3 million working capital. The listing will not happen until early July because the TSXV analyst in charge of the KDI file nitpicked so long about irrelevant matters that Mountain Province must now produce audited financials for Q1 of 2012. Apparently the TSXV analyst harboured deep suspicions that Patrick Evans and the rest of the Mountain Province management were not serious about exploring the Kennady North claims, and were in fact going into competition with the army of lawyers and accountants responsible for manufacturing the capital pool shells that have glutted the TSXV. (During May 2012 the brokers floated 11 new capital pools, bringing the total created since 2000 to 1,100 capital pools.) Why else would he request detailed information like proposed drill hole coordinates? The inexplicable delay no doubt contributed to the stock's price drop to $3.25 earlier this week, as investors stood aside while some beleaguered fund manager pounded out a position without seeking bids. This type of volatile market action will continue to afflict juniors with advanced projects as institutional capital exits the resource sector amid the growing macroeconomic gloom and doom. The good news is that Mountain Province has received a land use permit for Kennady North which allows it to proceed immediately with a drilling program that will probe the Kelvin-Faraday kimberlite corridor with one core rig while another will test 12 other targets accessible through land based drilling. The remaining targets will be tested during the winter. De Beers and Mountain Province are also sitting down to figure out which of the 23 high priority targets on their Gahcho Kue joint venture ground should be drilled this summer. Mountain Province has bounced back to $4.25 but Spec Value Hunters should by now be aware that whenever I say something justifiably positive about a resource junior these days the stock promptly goes down. So, brace yourselves, Mountain Province is a Good Absolute Spec Value Buy at $4.25 with the double purpose of owning an advanced diamond project and the KDI spinout whose renewed exploration efforts in a part of the NWT that has seen little grassroots work for the past decade could translate into a high-flying discovery play.
*JK owns shares in Mountain Province Diamonds Inc
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