VANCOUVER, British Columbia,
April 26, 2013 /PRNewswire/ --
Shares Outstanding: 62,738,850
Kootenay Silver Inc. (TSX VENTURE: KTN) ("Kootenay" or
the "Company") announces the closing of a $4,750,000 private placement (the "Private
Placement") with Agnico-Eagle Mines Limited ("Agnico-Eagle")
previously announced by the Company on April
23, 2013. An aggregate of 6,250,000 units (each a "Unit") at
a purchase price of $0.76 per Unit
were issued to Agnico-Eagle pursuant to the Private Placement, with
each Unit consisting of one common share in the capital of the
Company (each a "Common Share") and one-half of one transferrable
common share purchase warrant (each whole warrant, a "Warrant").
Each Warrant entitles Agnico-Eagle to acquire one Common Share at
an exercise price of $1.08 until
April 26, 2015. All of the securities
issued pursuant to the Private Placement are subject to a hold
period until August 27, 2013.
As a result of its participation in the Private Placement,
Agnico-Eagle now owns 9.96% of Kootenay's issued and outstanding
Common Shares on a non-diluted basis (14.23% if Agnico-Eagle
exercises all of the Warrants). Agnico-Eagle also has a
participation right until April 26,
2015 pursuant to which, provided that Agnico-Eagle owns at
least five percent of the then issued and outstanding Common Shares
of Kootenay (taking into account convertible securities owned by
Agnico-Eagle), it has the right to participate in certain equity
offerings of the Company on the same terms as other participants in
such offerings in order to maintain its pro-rata ownership interest
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 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.
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.
Forward-Looking Statements: The information in
this news release has been prepared as at April 26 2013. Certain statements in this news
release, referred to herein as "forward-looking statements",
constitute "forward-looking statements" under the provisions of
Canadian securities laws. These statements can be identified by the
use of words such as "expected", "may", "will" 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. 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 604-601-5652; +1-888-601-5650
or visit:http://www.kootenaysilver.com
(KTN.)
