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Re: basserdan post# 31854

Friday, 07/17/2015 11:37:06 AM

Friday, July 17, 2015 11:37:06 AM

Post# of 35698
Kootenay Silver's La Negra Maiden Resource Estimate and Preliminary Metallurgical Testing Underway; $1.5 Million Non-Brokered Private Placement

Shares Outstanding: 74,893,897

VANCOUVER, July 16, 2015 /CNW/ - Kootenay Silver Inc. (TSX VENTURE:KTN.V; OTC:KOOYF) ("Kootenay") is pleased to announce it has initiated the maiden NI 43-101 resource estimate including a metallurgical study at the La Negra silver discovery located in Sonora, Mexico. In addition to the resource estimate and metallurgical work, the company announces a non-brokered private placement (the "Private Placement") of up to 5 million units (each "Unit") at a purchase price of $0.30 per Unit, for aggregate gross proceeds to Kootenay of up to $1,500,000.

States Kootenay President and CEO James McDonald, "We look forward to completing the maiden resource estimate and preliminary metallurgical testing on La Negra. Kootenay has engaged the services of Hans Smit, P.Geo to conduct the maiden NI 43-101 resource estimate on La Negra. Mr. Smit specializes in guiding advanced exploration projects through resource estimations, economic evaluations and permitting. Following this work, we have designed a 5,000 meter drill program with the objective of doubling the current mineralized envelope and testing the newly discovered Cameron zone and the Cameron-Vania trend."

Expansion Program

Kootenay reported in its June 15, 2015 news release the discovery of the new Cameron zone and the Cameron-Vania trend that underscores the potential of this mineralized corridor to become a mining district capable of producing multiple new precious metals discoveries well into the future. The recognition of underlying geologic controls that link the La Negra and Promontorio mineralization with the Cameron-Vania trend serves as a strong complement to our emerging La Negra silver discovery and elevates our confidence for the discovery of additional, similar style, large-scale deposits on Promontorio.

Private Placement

Each Unit will consist of one common share ("Common Share") of Kootenay and one transferable share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to acquire one Common Share at an exercise price of $0.55 for a period of 24 months from the closing date of the Private Placement. Cash finder's fees may be paid in connection with the Private Placement.

All of the securities issued pursuant to the Private Placement will be subject to a minimum four-month hold period. The Private Placement and payment of any finder's fee are subject to acceptance by the TSX Venture Exchange. The net proceeds from the Private Placement will be used to finance additional work on Kootenay's Promontorio property, which includes the new La Negra Breccia discovery, its other properties and for general working capital.

The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. federal and state registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

La Negra Silver Discovery

The La Negra Breccia prospect is situated approx. 6.5 kms north of Kootenay's Promontorio Silver Resource in Sonora, Mexico and is contained within a 25 x 15 km mineralized corridor, the 'Promontorio Mineral Belt.' Initial exploration on La Negra included a successful trenching and surface sampling program that confirmed extensive silver mineralization over a large 100 to 200 meters by 500 meters area on surface. (See news releases from May 28th and June 5th, 2014 for more details). A follow up Phase I drill program on La Negra returned significant and consistent intervals of high grade, widespread silver mineralization extending from surface to depth, confirming a substantial new silver discovery.

Results from a recent Phase II drilling program on La Negra have further confirmed the continuity of silver grades and the consistency of silver mineralization to depth within the core of the diatreme breccia. (See news releases from March 31st, April 30th and May 20th, 2015 for more details). This has set the stage for the advanced future development of La Negra and reinforces its future potential as a low-cost, open pittable silver resource. At present, drill results from the program are being compiled and collated in a 3D model showing the geologic controls and assay results. This compilation will be used to design the next drill phase, which is expected to be announced in the near future.

To View Full Results of Sampling and drill Program Visit: http://www.kootenaysilver.com

The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of Kootenay.

About Kootenay

Kootenay Silver Inc. is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Its flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. Kootenay's objective is to develop near term discoveries and long-term sustainable growth. Its management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution.

For additional information, please contact:

James McDonald, CEO and President at 403-238-6986

Ken Berry, Chairman at 604-601-5652; 1-888-601-5650

or visit: http://www.kootenaysilver.com

http://www.kootenaysilver.com/s/NewsReleases.asp?ReportID=716328&_Type=News-Releases&_Title=LA-NEGRA-MAIDEN-RESOURCE-ESTIMATE-AND-PRELIMINARY-METALLURGICAL-TESTING-UND...







Dan

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