VANCOUVER, British Columbia,
April 23, 2013 /PRNewswire/ --
Shares Outstanding: 56,488,850
Kootenay Silver Inc. (TSX VENTURE: KTN.V) ("Kootenay" or
the "Company") announces that Agnico-Eagle Mines Limited
("Agnico-Eagle") has entered into a subscription agreement to make
an investment of $4,750,000 in
Kootenay through a non-brokered private placement of units. As a
result of the transaction, Agnico-Eagle will own 9.96% of
Kootenay's issued and outstanding shares on a non-diluted
basis.
Under the terms of the subscription agreement, Agnico-Eagle will
purchase a total of 6,250,000 units at a price
of $0.76 per unit. Each unit is comprised of one common
share and one-half of one common share purchase warrant. Each
whole share purchase warrant will entitle Agnico-Eagle to acquire
one common share of the Company at a price of $1.08 for a
period of two years from the date of issuance. In the event that
all warrants are exercised, an additional $3,375,000 will be
raised.
James McDonald, President and CEO
of Kootenay, commented, "We are very pleased that Agnico-Eagle has
committed to become a strategic investor in Kootenay Silver.
Agnico's investment provides us with a substantial alternative
source of capital to the open market from a recognized world leader
in precious metals mining, development and exploration. Agnico's
commitment to exploration and mining in Mexico directly coincides with our own
commitment to the exploration and development of Promontorio. This
investment recognizes the quality and near-term potential of our
flagship Promontorio Silver project and our other principal
exploration targets in Sonora,
Mexico."
Sean Boyd, President and CEO of
Agnico-Eagle, commented, "We are pleased to be involved with the
advancement of Promontorio, a project that will continue to benefit
from Kootenay's capable exploration team. This investment is also
consistent with our desire to increase our presence in Sonora
State."
The Company intends to use the net proceeds of the Offering for
the advancement of the Promontorio Silver project and general
working capital.
The closing of the private placement is expected to occur on or
about April 26, 2013 and is subject to all necessary
regulatory approvals. The common shares issuable pursuant to the
offering (including the common shares issuable upon the exercise of
the warrants) are subject to a four-month hold period. Upon closing
of the private placement, subject to certain conditions,
Agnico-Eagle will have the right to participate in any future
equity offerings by the Company in order to maintain its pro rata
investment in the Company.
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 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.
The TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or the
accuracy of this release.
Forward-Looking Statements: The information in
this news release has been prepared as at April 23 2013. 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 in this
news release include, but are not limited to: statements relating
to the expected closing date of the private placement; and
Agnico-Eagle's ownership of Common Shares and Warrants following
the closing date.
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.
For further information:
James McDonald, CEO and
President at +1-403-238-6986
Investor Relations at +1-604-601-5652; 1-888-601-5650
or visit: http://www.kootenaysilver.com
(KTN.)
