Kootenay President & CEO, James McDonald stated, "The
Kootenay Announces Increase in Non-
brokered Private Placement and Closing
for Proceeds of $7.0 Million
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, March 6, 2019 /CNW/ - Kootenay Silver Inc. (TSXV:
KTN) (the "Company" or "Kootenay") is pleased to report that, due
to significant interest, the Company has increased the size of its non-
brokered private placement financing (the "Private Placement")
announced on February 5, 2019. The Private Placement, which was
originally for gross proceeds of $2,500,000, closed today for gross
proceeds to the Company of $7,000,289.66.
Kootenay President & CEO, James McDonald stated, "The
successful acquisition of two new projects in 2018 with the potential
for the discovery of high-grade silver deposits has generated
substantial interest. Moving forward particular focus will be on the
Columba Property due to the very high grades of silver reported from
historic mine records. The Company is very excited about this
prospect's size potential indicated by numerous undrilled veins as well
as the high level of preservation of the system. We are very pleased
to now have sufficient funds to conduct the first modern drill program
at Columba to begin as soon as permits are in hand which is expected
to be in early April."
The Columba Property, located in the state of Chihuahua, is a classic
epithermal vein system with the potential for the discovery of high-
grade silver deposits. Historic mining records indicate that up to
approximately 100,000 tonnes of silver ore was mined during two
different periods dating back to 1900. Mapping and sampling
completed by Kootenay of mineralized veins exposed at surface
returned grades of up to 692 g/t silver as well as silver grades found in
tailings from historic mining endorse the information found in the
reports: click link to view map. Furthermore, recent programs also
support the observation that grades, vein continuity and vein widths
improve as one moves into lower elevations, being deeper into the
system. These observations are also seen in historic underground
mining data that indicate grades continue to increase with depth as
reported in the Company's news releases dated November 19, 2018
and January 8, 2019. For a visual of historic underground adits at
Columba click on this link to view a video. (Please note historic data
has not been verified and thus cannot be relied upon for
accuracy.) Full results of sampling completed b Kootenay on the
Columba Property can be found in Kootenay's press releases dated
November 19, 2018 and January 8, 2019, copies of which can be
found on Kootenay's SEDAR profile at www.sedar.com.
The Financing:
The Company has closed its non-brokered Private Placement and has
issued an aggregate of 50,002,069 units (each a "Unit") at a purchase
price of $0.14 per Unit for gross proceeds to the Company of
$7,000,289.66. Each Unit consists of one common share ("Common
Share") and one transferable common share purchase warrant
("Warrant"). Each Warrant entitles the holder to acquire one Common
Share at an exercise price of $0.20 per share until March 5, 2024.
Cash finder's fees to arm's length parties totaling $256,181.38 have
been paid on a portion of the Private Placement.
The Company intends to use the net proceeds of the Private
Placement for drill testing Columba; the advancement of Copalito to
drill ready stage, advancement of Mecatona to drill targeting and
further drill targeting and target prioritization at La Cigarra. The
Company will also use a portion of the net proceeds of the Private
Placement for maintenance of existing properties, investigating future
acquisitions with the focus on large high-grade deposits as well as
general working capital.
All securities issued pursuant to the Private Placement are subject to
a four month hold period under applicable securities laws in Canada
ending on July 6, 2019. The Private Placement is subject to the final
acceptance of the TSX Venture Exchange.
The securities described herein have not been and will not be
registered under the United States Securities Act of 1933, as
amended, or any State Securities Laws and may not be offered or
sold in the United States or to the account or benefit of a U.S. person
absent an exemption from the registration requirements of such Act.
This release does not constitute an offer for sale of securities in the
United States.
Sampling and QA/QC
Surface samples reported herein are a combination of grab, chip and
panel chip. All technical information for the Columba exploration
program is obtained and reported under a formal quality assurance
and quality control ("QA/QC") program. Samples are taken under the
direction of qualified geologists. Samples are then labeled placed in
plastic bags, sealed and with interval, location and sample numbers
recorded. Samples are delivered by the Company via courier to ALS
Minerals ("ALS") in Hermosillo. The samples are dried, crushed and
pulverized with the pulps being sent airfreight for analysis by ALS in
Vancouver, B.C. Systematic assaying of standards, blanks and
duplicates is performed for precision and accuracy. Analysis for silver,
zinc, lead and copper and related trace elements was done by ICP
four acid digestion, with gold analysis by 30-gram fire assay with an
AA finish.
Qualified Persons
The scientific and technical information in this news release has been
prepared in accordance with the Canadian regulatory requirements
set out in National Instrument 43-101 (Standards of Disclosure for
Mineral Projects) and has been reviewed and approved on behalf
Kootenay by James McDonald, P.Geo, President, CEO & Director for
Kootenay, a Qualified Person.
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.
On Behalf of the Board of Directors of
KOOTENAY SILVER INC.
"James McDonald"
President & CEO
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.
CAUTIONARY NOTES:
The sampling results disclosed in this news release are not
necessarily indicative and drilling is required to confirm a mineral
deposit.
The information in this news release has been prepared as at March
5, 2019. This news release contains "forward-looking information"
within the meaning of Canadian securities legislation and "forward-
looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively, "forward-
looking statements"). All statements, other than statements of
historical fact, that address activities, events or developments that
Kootenay Silver Inc. ("Kootenay" or the "Company") believes,
expects or anticipates will or may occur in the future including, without
limitation, the anticipated exploration program results from exploration
activities, the discovery and delineation of mineral deposits and
sampling results from the Columba Project and other properties, the
anticipated content, commencement, and cost of exploration programs
in respect of the Company's projects and mineral properties, the
anticipated business plans and timing of future activities of the
Company, future capital expenditures (including the amount and
nature thereof), business strategies and measures to implement
strategies, competitive strengths, goals, expansion and growth of the
business and operations, plans and references to the future success
of the Company, and such other matters, are forward‐looking
statements. These forward-looking statements reflect the current
expectations or beliefs of the Company based on information currently
available to Kootenay and often use words such as "expects", "plans",
"anticipates", "estimates", "believes", "intends", "potential", "may" or
variations thereof or the negative of any of these terms.
Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
statements and, even if such actual results are realized or
substantially realized, there can be no assurance that they will have
the expected consequences to, or effects on, Kootenay. Factors that
could cause actual results or events to differ materially from current
expectations include, among other things: the ability of the Company
to obtain sufficient financing to fund its business activities and plans,
operating and technical difficulties in connection with mineral
exploration and development and mine development activities for
Company's projects generally, actual results of exploration activities
(including the estimation or realization of mineral reserves and mineral
resources), the timing and amount of estimated future production,
costs of production, capital expenditures, the costs and timing of the
development of new deposits, the availability of a sufficient supply of
water and other materials, requirements for additional capital, future
prices of gold and silver, changes in general economic conditions,
changes in the financial markets and in the demand and market price
for commodities, possible variations in ore grade or recovery rates,
possible failures of plants, equipment or processes to operate as
anticipated, accidents, labour disputes and other risks of the mining
industry, delays in obtaining governmental and regulatory approvals
(including of the TSX Venture Exchange), permits or financing or in
the completion of development or construction activities, changes in
laws, regulations and policies affecting mining operations, hedging
practices, currency fluctuations, title disputes or claims limitations on
insurance coverage and the timing and possible outcome of pending
litigation, environmental issues and liabilities, risks related to joint
venture operations, and risks related to the integration of acquisitions,
as well as those factors discussed under "Risk Factors" in the
Company's most recent annual management's discussion and
analysis and other filings of the Company with the Canadian
Securities Administrators, copies of which can be found under the
Company's profile on the SEDAR website at www.sedar.com.
Any forward-looking statement speaks only as of the date on which it
was made, and except as may be required by applicable securities
laws, Kootenay disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Although Kootenay believes that
the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on
such statements due to their inherent uncertainty. There can be no
assurance that forward-looking statements will prove to be accurate,
and actual results and future events could differ materially from those
anticipated in such statements.
Cautionary Note to US Investors: This news release may contain
information about adjacent properties on which we have no right to
explore or mine. We advise U.S. investors that the SEC's mining
guidelines strictly prohibit information of this type in documents filed
with the SEC. U.S. investors are cautioned that mineral deposits on
adjacent properties are not indicative of mineral deposits on our
properties. This news release may contain forward-looking statements
including but not limited to comments regarding the timing and content
of upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes, etc. Forward-
looking statements address future events and conditions and therefore
involve inherent risks and uncertainties. Actual results may differ
materially from those currently anticipated in such statements.
SOURCE Kootenay Silver Inc.
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l
%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 08:00e 06-MAR-19