Brokered, non-brokered deals sell 15,073,290 units at C$0.40 per unit
By Devika Patel
Knoxville, Tenn., July 28 – Kootenay Silver Inc. said it settled its private placement of units with Haywood Securities Inc. as agent for C$5,175,000 of the deal, which priced on July 7. The C$854,316 remainder was raised on a non-brokered basis with investors that included Pan American Silver Corp. The brokered deal was increased to C$5 million with a C$675,000 brokered greenshoe from C$4 million with a C$600,000 greenshoe on July 8, the date the non-brokered sale was added for C$500,000.
The company sold 12,937,500 units of one common share and one quarter-share warrant at C$0.40 per unit on a commercially reasonable efforts basis in the brokered offering. Pan American Silver and other investors also bought 2,135,790 units on a non-brokered basis at the same price.
Each whole warrant is exercisable at C$0.55 until April 21, 2021. The strike price is a 34.15% premium to the July 6 closing share price of C$0.41.
Proceeds will be used for exploration and development of the La Cigarra project and for general working capital purposes.
Kootenay is a silver exploration company based in Vancouver, B.C.
| Issuer: | Kootenay Silver Inc.
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| Issue: | Units of one common share and one quarter-share warrant
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| Amount: | C$6,029,316
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| Units: | 15,073,290
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| Price: | C$0.40
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| Warrants: | One quarter-share warrant per unit
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| Warrant expiration: | April 21, 2021
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| Warrant strike price: | C$0.55
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| Agent: | Haywood Securities Inc. (for C$5,175,000), non-brokered (for C$854,316)
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| Investor: | Pan American Silver Corp.
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| Pricing date: | July 7
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| Upsized: | July 8
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| Settlement date: | July 28
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| Stock symbol: | TSX Venture: KTN
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| Stock price: | C$0.41 at close July 6
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| Market capitalization: | C$41.6 million
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