"Private Placement") of units (each a "Unit") for gross proceeds of $5,000,000 ( $0.16 per Unit), announced on
Kootenay closes strategic investment by Eric
Sprott for proceeds of $5 million
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE
UNITED STATES
/
VANCOUVER
,
Aug. 22, 2019
/CNW/ -
Kootenay Silver Inc. (TSXV: KTN) (the "Company" or
"Kootenay")
is pleased to report that it closed its non-brokered private placement financing (the
"Private Placement") of units (each a "Unit") for gross proceeds of
$5,000,000
(
$0.16
per Unit),
announced on
August 13, 2019
. The entire Private Placement was fully subscribed by Mr.
Eric
Sprott
.
Each Unit consists of one common share ("Common Share") and one-half of one common share
purchase warrant (each whole warrant "Warrant"). Each Warrant entitles the holder to acquire one
Common Share at an exercise price of
$0.22
per share until
August 22, 2022
. Finder's fees totaling
$200,000
in Units were paid to Mackie Research Capital Corporation with 1,250,000 Common
Shares issued and 625,000 Warrants.
Mr. Sprott acquired, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him,
31,250,000 Units of the Company for
$5,000,000
pursuant to the previously announced Private
Placement. Prior to the Private Placement, Mr. Sprott beneficially owned or controlled 400,000
Common Shares of the Company. As a result of the Private Placement, Mr. Sprott beneficially owns
or controls 31,650,000 Common Shares and 15,625,000 Warrants of the Company representing
approximately 11.4% of the issued and outstanding Common Shares on a non-diluted basis and
approximately 16.1% of the issued and outstanding Common Shares on a partially diluted basis.
The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of
the investment and may acquire additional securities of the Company including on the open market or
through private acquisitions or sell securities of the Company including on the open market or
through private dispositions in the future depending on market conditions, reformulation of plans
and/or other relevant factors.
A copy of Mr. Sprott's early warning report will appear on the Company's profile on SEDAR and
may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza,
South Tower,
Toronto, Ontario
M5J 2J1).
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 issued pursuant to the Private Placement are subject to a four month hold period under
applicable securities laws in
Canada
ending on
December 23
, 2019.
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.
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 information in this news release has been prepared as at
August 21, 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..
SOURCE
Kootenay Silver Inc.
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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 13:44e 22-AUG-19