Kootenay Silver (
TSX: V.KTN,
Forum) significantly strengthened its books when the company announced yesterday that it had closed a previously announced brokered private placement with Haywood Securities Inc.
According to the
news release, the offering consisted of an aggregate of 12.94 million units, including 675,000 units issued as a result of the exercise in full of the Agents’ over-allotment option. Units issued were sold for $0.40 per unit for gross proceeds of $5.175 million.
Also in the release, the company announced closing a concurrent non-brokered private placement of 2.14 million units at the offering price, which includes participation by Pan American Silver Corp. to maintain its pro-rata ownership position, for additional gross proceeds of $854,316.
The aggregate gross proceeds from both offerings are $6,029,316.
Each unit consists of one common share and one-quarter of one common share purchase warrant. Each full warrant entitles the holder to acquire one common share at an exercise price of $0.55 per warrant share until April 21, 2021.
Net proceeds will be used to fund the exploration and development of the company’s La Cigarra project in Mexico and for general working capital purposes.
All securities issued are subject to a four-month hold period.
Kootenay Silver was in the news recently when
the Vancouver-based junior miner provided an update on activities at La Cigarra Project a little over a week ago.
Currently there are 88.51m outstanding shares with a market cap of $42.49 million.
FULL DISCLOSURE: Kootenay Silver is a Stockhouse Publishing client.