/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.