Kootenay Silver Inc. (TSX-V:KTN) said it has amended the terms of the option agreement for its for Columba project to allow for 50% of the April 2023 payment of US$430,000 plus 16% IVA sales tax to be paid in common shares of the company.
The payment, due on April 12, 2023, will be paid as to US$215,000 cash and US$215,000 (plus 16% IVA) in Kootenay common shares calculated at the volume weighted average price for the previous twenty trading days with that price converted to US dollar value using the Bank of Canada's exchange rate over the twenty-day period.
The final payment of US$215,000, which will be paid in cash, is due on May 12, 2023, after which the company will own 100% of the Columba project.
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Additionally, the company said it has reached an agreement with an arm's length party dated March 31, 2023, to resolve conflicting property interests, under which Kootenay will issue 2,018,710 in common shares in consideration of US$135,000 plus 16% IVA, based on the 20-day volume weighted average price prior to the agreement of $0.1064 per common share, converted by the US dollar to Canadian dollar average exchange rate for the 20 day period prior to March 31, 2023, of $1.3715.
The common shares to be issued under these agreements will have a hold period of four months and one day.
The issuance of common shares is subject to TSX Venture Stock Exchange approval.
The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the US Securities Act and applicable state securities requirements or exemptions.
Kootenay Silver 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 is focused on the expansion of its current silver resources, new discoveries and the near-term economic development of its priority silver projects located in prolific mining districts in Sonora, State and Chihuahua, State, Mexico, respectively.
Contact the author at jon.hopkins@proactiveinvestors.com