Just got on board today. Here's one of the reasons.
August
1
3
, 201
9
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES
KOOTENAY
ANNOUNCES
$5
MILLION
INVESTMENT
BY
STRATEGIC INVESTOR
ERIC SPROTT
Kootenay Silver Inc. (TSXV: KTN) (the “Company” or
“Kootenay”)
is pleased to announce
a non
-
brokered private placement of $5
,000,000
consisting
of 31,250,000 units
(the “Units”)
at
a price of
$
0.16
per
U
nit
(the
“Placement Price”)
.
James McDonald President and CEO stated “We are very pleased to have the support of Mr. Eric Sprott as
a major investor in Kootenay. Having Mr. Sprott make a significant investment in the Company is a strong
endorsement of our silver asset base. This fina
ncing puts us in a very strong financial position
and allows
us to move aggressively forward on not just Columba
,
but our other key assets as well.”
Each
U
nit
consists of
one
common
share
(“Common Share”)
and one
-
half
of one common share
purchase
warrant
(“Warrant”)
. Each whole warrant
entitles the holder to
acquire
one
Common S
hare at a
n exercise
price of
$
0.22
for a period of
36
months immediately following the closing date of the Private Placement
.
The
entire Private Placement is being fully subscribed
and
invest
ed into
by
Mr.
Eric Sprott. Upon
completion of the financing Eric Sprott will hold
11.28
% on a non
-
diluted basis and
16.02
% on a partially
diluted basis.
A
finder’s
fee of 4%
of the gross proceeds of the Private Placement
,
will be paid to Mackie Research Capital
Corporation
who are
an
arms length
finder and is
payable
in
cash or
Unit
s,
subject to TSX Venture Exchange
approval
.
Net p
roceeds of the
Private P
lacement will be used to advance
exploration
of the Columba
Silver Project
in
Chihuahua State, Mexico,
potentially adding a further drill rig
to expedite the current drill program
,
and to
fund
further work at Copalito, La Cigarra and other pro
jects
as well as
for general working capital
purposes
.
All securities to be issued pursuant to the Private Placement will be subject to a four month hold period
from the closing date under applicable securities laws in Canada and among other things, receipt by
Kootenay of all necessary regulatory approvals, in
cluding the TSX Venture Exchange.
The securities being offered under the Private Placement 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
with
in 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 th
e United States.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Kootenay Silver Inc.
Kootenay Silver Inc. is an exploration company actively engaged in the discovery and development of mineral
projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Supported by one of the
largest portfolios of silver assets in Mexico
, Kootenay continues to provide its shareholders with significant
leverage to silver prices. The Company remains focused on the expansion of its current silver resources, new
discoveries and the near
-
term economic development of two of its priority silver
projects located in prolific
mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.
For additional information, please contact:
James McDonald, CEO and President
at 403
-
880
-
6016
Ken Berry, Chairman
at 604
-
601
-
5652; 1
-
888
-
601
-
5650
or visit:
www.kootenaysilver.com
CAUTIONARY NOTE REGARDING FORWARD
-
LOOKING STATEMENTS:
The information in this news release has been prepared as at
August
1
2
, 2019
. Certain statements in this news
release, referred to herein as
"forward
-
looking statements", constitute "forward
-
looking statements" under the provisions of Canadian provincial securities laws. These
statements can be identified by the use of words such as "expected", "may", "will" or si
milar terms.
Forward
-
looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Kooten
ay as of
the date of such statements, are inherently subject to significant business, economic and competitive
uncertainties and contingencies. Many factors,
known and unknown, could cause actual results to be materially different from those expressed or implied by such forward
-
looking statements.
Readers are cautioned not to place undue reliance on these forwar
d
-
looking statements, which speak only as of the date made. Except as otherwise
required by law, Kootenay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to a
ny such statements to
reflect any change in Kooten
ay’s expectations or any change in events, conditions or circumstances on which any such statement is based.
More
particularly, this release contains statements concerning the anticipated Private Placement. Accordingly, there is a risk tha
t the Private Pl
acement
will not be
closed
, or the Private Placement will be completed within the anticipated time or at all.
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