James McDonald President
Kootenay Announces $5 Million Investment by
Strategic Investor Eric Sprott
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE
UNITED STATES
/
VANCOUVER
,
Aug. 13, 2019
/CNW/ -
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 Unit (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 financing 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 Unit 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 Share
at an 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 invested 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 Units, subject
to TSX Venture Exchange approval.
Net proceeds of the Private Placement 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 projects 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, including 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 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
.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The information in this news release has been prepared as at
August 12, 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 similar terms.
Forward-looking statements are necessarily based upon a number of factors and assumptions that,
while considered reasonable by Kootenay 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 forward-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 any such statements to reflect any change in Kootenay'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 that the Private Placement will not be closed, or the Private Placement
will be completed within the anticipated time or at all.
SOURCE
Kootenay Silver Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/August2019/13/c1911.html
%SEDAR: 00016508E
For further information:
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
CO: Kootenay Silver Inc.
CNW 12:43e 13-AUG-19