Kootenay Silver (KTN-V) March 4th 2016 is pleased to announce that it has closed the private placement transaction with Pan American Silver (PAA-T) previously announced and described in Kootenay's news releases dated February 16, 2016 and February 26, 2016, pursuant to which Pan American has subscribed for 9,090,909 Kootenay shares at a price of CDN$0.22 per Kootenay share for an aggregate subscription price of CDN$2,000,000 (the "Private Placement").
Concurrent with, and as part of the conditions to, closing of the Private Placement:
Pan American's wholly owned subsidiary Compania Minera Dolores S.A. de C.V. ("Dolores") has paid to Kootenay's wholly owned subsidiary Minera JM, S.A. de C.V. ("Minera") a payment of US$250,000 (plus applicable Mexican taxes) pursuant to the Option Agreement dated February 15, 2016 entered into among Kootenay, Pan American, Minera, and Dolores (the "Option Agreement"); and
Pan American, Dolores, and Minera have entered into a property purchase option agreement pursuant to which Dolores has provided Minera with an option to acquire up to two of its exploration properties in Mexico in return for a 2.5% net smelter return royalty on each of the acquired properties.
Kootenay President and CEO James McDonald stated, "The Option Agreement represents a significant milestone in the development of La Negra that creates a pathway to fulfilling our goal to advance the project towards production and to further explore key prospective areas within the Promontorio Mineral Belt. As a world leading silver producer, Pan American brings to Kootenay an unparalleled track record in silver exploration and mine development. This expertise is a major benefit to Kootenay shareholders and will undoubtedly play a vital role in our future success. The Pan American option leverages Kootenay's considerable investment in the project to date. We believe that working together, Kootenay and Pan American have the capability to fully exploit the upside potential of these emerging assets."
The Company intends to use the net proceeds of the Private Placement for exploration activities and corporate purposes. All Kootenay shares issued to Pan American pursuant to the Private Placement will be subject to a four month hold period expiring July 4, 2016.
About Kootenay
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. The Company's top priority is the advancement of precious metals projects contained within its Promontorio Mineral Belt in Sonora, Mexico. This includes its La Negra high-grade silver discovery and its Promontorio Silver Resource. Kootenay's core objective is to develop near term discoveries and long-term sustainable growth. Management comprises 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.
Neither the TSX Venture Exchange nor TSX Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange or the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Kootenay Silver Inc.
Kootenay Silver Inc.:
James McDonald,
(403) 238-6986,
President, CEO & Director;
Ken Berry,
(604) 601-5652,
Chairman |
