Kootenay Silver Inc. (TSX-VENTURE:KTN) (the “Company”) is pleased to announce that it has today closed the $1,050,000 balance (the “Final Tranche”) of its $8,253,000 brokered private placement (the “Offering”) of units (each a “Unit”) as previously announced on October 4, 2012 and October 25, 2012 and has issued an additional 1,000,000 Units at a purchase price of $1.05 per Unit for gross proceeds of $1,050,000.
Each Unit consists of one common share (“Share”) of the Company and one half of one common share purchase warrant (“Warrant”). Each whole Warrant entitles the holder to acquire one Share of the Company at a price of $1.30 for a period of 24 months from today’s date. All securities issued in connection with the Final Tranche are subject to a hold period in Canada expiring on March 1, 2013.
An aggregate of 7,860,000 Units were issued pursuant to the Offering, for aggregate gross proceeds to the Company of $8,253,000. The Offering was conducted by Dundee Securities Ltd., on behalf of a syndicate including PI Financial Corp. (the “Agents”).
In connection with the Offering, the Agents received a cash commission of $495,180, equal to 6.0% of the gross proceeds raised under the Offering, and 471,600 compensation warrants (each a “Broker Warrant”), equal to 6% of the total number of Units issued pursuant to the Offering. Each Broker Warrant is exercisable into one Share at an exercise price of $1.05 per Share until October 25, 2014.
The net proceeds of the Offering will be used for the advancement of the Promontorio project, maintenance of other projects and general corporate purposes.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ABOUT KOOTENAY
Kootenay Silver Inc. is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Its flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. Kootenay’s objective is to develop near term discoveries and long-term sustainable growth. Its management and technical team are proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital markets. Multiple, ongoing J/V partnerships in Mexico and Canada maximize potential for additional, new discoveries while maintaining minimal share dilution.
For additional information, please contact:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
or visit: www.kootenaysilver.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.
This press release uses the terms “Measured”, “Indicated”, and “Inferred” resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
