Kootenay Silver Inc. (TSX-V:KTN.V) is pleased to announce that, further to its press release dated July 16, 2015, it has closed the initial tranche of its non-brokered private placement and issued an aggregate of 3,586,500 units at a purchase price of $0.30 per Unit raising gross proceeds to the Company of $1,075,950. The Company anticipates closing the balance of the Private Placement shortly and will provide an update in due course.
Each Unit consists of one common share and one transferable share purchase warrant of Kootenay. Each Warrant entitles the holder to acquire one Common Share at an exercise price of $0.55 until August 10, 2017. Upon approval by the TSX Venture Exchange, cash finder’s fees to arm’s length parties totaling $7,110 and the issuance of 96,000 finders units have been paid on this portion of the Private Placement. The Finders Units consist of one Common Share and one non-transferable common share purchase Warrant. All securities issued in connection with the Private Placement are subject to a hold period which expires on December 11, 2015.
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 mineral resource property 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.
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.
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