VANCOUVER, May 2, 2016 /CNW/ - KootenaySilver Inc. (TSXV: KTN)
("Kootenay") is pleased to announce that further to the joint press releases of Kootenay and Pan American Silver Corp. ("Pan
American") dated February 16, 2016 and April 26, 2016, Kootenay has
closed its non-brokered private placement with Pan American (the "Private Placement") and issued an aggregate of 6,793,550 shares
for aggregate gross proceeds to Kootenay of CAD$1,553,431. No finders fees were paid in
connection with the Private Placement. As a result of the Private Placement, Pan American owns ten percent (10%) of the
issued and outstanding common shares of Kootenay.
Kootenay intends to use the net proceeds of the Private Placement for exploration activities and general corporate purposes.
All of the shares issued today pursuant to the Private Placement will have a four month hold period which expires
August 30, 2016. All amounts are quoted in Canadian dollars.
The securities being offered 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.
About Kootenay
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.
The Company's top priorities are the advancement of the La Cigarra silver project and the Promontorio Mineral Belt, in Chihuahua, Mexico and Sonora, Mexico (respectively). The La Cigarra
property is 26 kilometres from the historic mining city of Parral and boasts nearby power, good road access, gentle topography, and
established infrastructure. La Cigarra currently hosts a resource estimate of 51.47 million ounces of silver in the Measured
& Indicated categories grading 86.3 g/t silver and 11.46 million ounces of silver in the Inferred category grading 80 g/t
silver. The mineralized system at La Cigarra has been traced over 6.5 kilometres and is defined at surface as a silver soil anomaly
and by numerous historic mine workings. The La Cigarra silver deposit is open along strike and at depth and is approximately
25km north, and along strike, of Grupo Mexico's Santa Barbara mine and Minera Frisco's San Francisco del Oro
mine. The Promontorio Mineral Belt includes Kootenay's La Negra high-grade silver discovery and its Promontorio Silver
Resource. Kootenay's core objective is to develop near term discoveries and long-term sustainable growth. Management comprises of
proven professionals with extensive international experience in all aspects of mineral exploration, operations and venture capital
markets.
Qualified Person
The Kootenay technical information in this news release has been prepared in accordance with the Canadian regulatory
requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed on behalf
Kootenay by James McDonald, P.Geo, President, CEO & Director for Kootenay, a Qualified
Person.
Neither the 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 REGARDING FORWARD-LOOKING
STATEMENTS
The information in this news release has been prepared as at April 29, 2016. 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
"intends to", "to be", "will", "to advance" 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. Forward-looking statements in this press release relate to, among other things: the timing and receipt of
required stock exchange and regulatory approvals for the Second Tranche Investment; length of the current market cycle and the
requirements for an issuer to survive the current market cycle and future growth potential for Kootenay; and the ability of
Kootenay to maintain its rights and title to its assets. There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially from those anticipated in such statements.
Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a
number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to
significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known
and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or
achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and
estimates based on or related to many of these factors. Such factors include, without limitation: receipt of all necessary
stock exchange and regulatory approvals for the Second Tranche Investment or consents and lack of material changes with respect to
the parties and their respective businesses; fluctuations in general macro-economic conditions; fluctuations in securities markets
and the market price of Kootenay's shares; fluctuations in the spot and forward price of silver, base metals or certain other
commodities; fluctuations in the currency markets (such as the Canadian dollar versus the U.S. dollar); changes in national and
local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated
with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; and
the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by
local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the
speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and
approvals from government authorities; title to properties; the failure to meet the closing conditions thereunder and the failure
by counterparties to such agreements to comply with their obligations thereunder. Readers should not place undue reliance on
the forward-looking statements and information contained in this news release concerning these times. 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.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and
Inferred Mineral Resources: This news release uses the terms "Measured and Indicated Resources" and "Inferred Resources", which
have a great amount of uncertainty as to their existence, and great uncertainty as to their economic feasibility. It cannot be
assumed that all or any part of a Measured and Indicated and/or Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic
studies. Kootenay advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of a
Measured, Indicated and Inferred resource exists, or is economically or legally minable.
SOURCE Kootenay Silver Inc.