VANCOUVER, May 2, 2016 /CNW/ - Pan American Silver
Corp. (NASDAQ: PAAS; TSX: PAA) ("Pan American" or the
"Company") has acquired ownership of an additional 5,723,550 common
shares for CAD$0.22 per common share
and 1,070,000 common shares for CAD$0.275 per common share, totalling 6,793,550
common shares (the "Common Shares") of Kootenay Silver Inc.
("Kootenay"), pursuant to a subscription agreement (the
"Subscription Agreement") between Pan American and Kootenay dated
February 15, 2016, as amended by the
letter agreement between the parties dated April 26, 2016 (the "Private Placement").
Immediately following the Private Placement, which closed
April 29, 2016, Pan American directly
owned 15,884,459 common shares of Kootenay, representing
approximately ten percent (10%) of the total number of the issued
and outstanding common shares of Kootenay.
Pursuant to the Subscription Agreement, Pan American had the
right to subscribe for and purchase a further number of common
shares of Kootenay such that Pan American would own ten percent
(10%) of all issued and outstanding common shares of Kootenay
(calculated on a non-diluted basis) upon the closing of the
transactions contemplated by the letter agreement dated
January 12, 2016, between Kootenay
and Northair Silver Corp. (the "Northair Transaction"), on and
subject to the terms and conditions set forth in the Subscription
Agreement (the "Second Tranche Option"). The Second Tranche Option
was conditional on closing of the Northair Transaction, which
closed on April 21, 2016, and Pan
American exercised its Second Tranche Option to subscribe for the
additional Common Shares of Kootenay as described herein, which has
allowed Pan American to maintain its ten percent (10%) ownership of
the issued and outstanding common shares of Kootenay. Pan American
continues to hold Kootenay common shares for investment
purposes.
Pan American acquired ownership of the Common Shares in reliance
on the accredited investor exemption set out in section 2.3 of
National Instrument 45-106 Prospectus Exemptions and the
Common Shares trade through the facilities of the TSX Venture
Exchange.
About Pan American
Pan American's mission is to be the world's pre-eminent silver
producer, with a reputation for excellence in discovery,
engineering, innovation and sustainable development. The Company
has seven operating mines in Mexico, Peru,
Argentina and Bolivia. Pan
American also owns several development projects in the USA, Mexico,
Peru and Argentina. Pan American is located at 1500 -
625 Howe Street, Vancouver, British
Columbia, V6C 2T6.
SOURCE Pan American Silver Corp.