Kootenay Silver completes $3.8 million placement
Kootenay Silver Inc. [KTN-TSXV, KOOYF-OTC] has completed a $3.77 million private placement financing. The amount raised included $2.1 million from a brokered private placement of units, and $1.6 million from a non-brokered portion priced at 10 cents per unit.
Each unit consists of one common share and one common share purchase warrant. Each warrant can be used to acquire one common share for 14 cents for 36 months from the date of closing. Proceeds are earmarked for working capital requirements and other general corporate purposes.
News of the financing came after the close of trading on May 24, 2023, when Kootenay shares closed at $0.09. The shares are currently trading in a 52-week range of 22 cents and $0.085.
Kootenay Silver is a Canadian and Mexico-based silver exploration company, actively engaged in the development of several major silver projects in Mexico, including the Columba and La Cigarra projects in Chihuahua, the Promontorio and La Negra silver projects in Sonora, and the Copalito high grade silver project in Sinaloa.
The company also has a large generative portfolio of precious metals exploration projects located in Canada and Mexico.
The company recently raised $962,445 from the sale of shares in Vancouver-based Aztec Minerals Corp. in several market transactions, a move that reduced its stake in the company to 8.02% from 11.85%.
In a press release on December 1, 2022, the company said it had appointed Dale Brittiliffe as its new vice-president, exploration. It said Brittiliffe is an accomplished geologist with over 25 years of experience in precious and base metals deposits in Canada, Mexico and Australia.
Brittiliffe will be directly involved in the advancement of Kootenay’s Mexican projects, most notably the Columba Silver Project in Chihuahua, Mexico, which hosts a high-grade vein system with no evidence of any exploration in modern times. Columba is a past-producing mine that hosts numerous classic epithermal high-grade veins measuring 10 plus kilometres of strike over widths of at least 6.0 metres. Historic mine records indicate grades of 600 to 900 g/t silver.
Underground workings at the site include four shafts and six levels of drifts, measuring over 1,000 metres in length.
The former silver mine operated from 1900 to 1910, when work ceased in the region due to the Mexican revolution. The property covers a large, high-grade silver epithermal system comprised of numerous veins, which the company has mapped over strike lengths of 200 metres to up to 2.0 kilometres.
Kootenay can acquire a 100% ownership in the concessions by making staged payments over a four-year period totalling $3.29 million. Payments are weighted to the back end of the agreement with an initial payment of US$15,000 and first and second year payments totaling US$75,000, and US$150,000 respectively. Upon earn-in, the vendors retain a 2.0% NSR, of which 1.0% can be repurchased for US$750,000.