Kootenay Announces Closing of $6 million in Financings

VANCOUVER, July 28, 2016 /CNW/ – Kootenay Silver (TSXV:KTN)  is pleased to announce that it has closed its previously announced brokered private placement (the “Offering”) with Haywood Securities Inc. (the “Agent”).  An aggregate of 12,937,500 units (the “Units”), including 675,000 Units issued as a result of the exercise in full of the Agents’ over-allotment option, were sold under the Offering at a price of $0.40 per Unit (the “Offering Price”) for total gross proceeds to the Company of $5,175,000.
In addition, the Company has closed a concurrent non-brokered private placement of 2,135,790 Units at the Offering Price, which includes participation by Pan American Silver Corp. to maintain its pro-rata ownership position, for additional gross proceeds to the Company of $854,316.
The aggregate gross proceeds of the Offering and the non-brokered private placement are $6,029,316.
Each Unit consists of one common share and one-quarter of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder to acquire one common share (a “Warrant Share”) at an exercise price per Warrant Share of $0.55 until April 21, 2021. The Warrants have identical terms to the 23,103,969 listed warrants (the “Listed Warrants”) of the Company currently outstanding and trading under the ticker ‘TSXV: KTN.WT’.
The net proceeds of the Offering will be used to fund the exploration and development of the Company’s La Cigarra project in Mexico and for general working capital purposes.
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