Kootenay Silver Initiates Maiden Resource Estimate at La Negra; Announces $1.5 Million Private Placement

Kootenay Silver Inc. (TSXV:KTN.V) announced that is has initiated the NI 43-101 maiden resource estimate, which includes a metallurgical study, at its La Negra discovery in Mexico. The company also announced a non-brokered private placement of up to 5 million units at a price of $0.30 per unit fopr the aggregate gross proceeds of $1.5 million.
As quoted in the press release:

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.

James McDonald, president and CEO of Kootenay Silver, commented:

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.

Click here to read the Kootenay Silver Inc. (TSXV:KTN.V) press release