Kootenay Silver Inc. (TSX-V:KTN) announced that it has entered into an agreement with Research Capital Corporation, acting as sole agent and bookrunner, to raise up to C$4 million in a best efforts, private placement of company units at an issue price of $0.16 per unit.
The company said it intends to use the net proceeds from the offering for working capital requirements and other general corporate purposes.
Each unit will be comprised of one Kootenay Silver common share plus one common share purchase warrant, with each warrant being exercisable to acquire one company common share at a price of $0.22 per share for a period of 36 months from the closing of the offering.
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As well, Research Capital will have an option to offer for sale up to an additional 15% of the number of units sold in the offering at the offering price, which is exercisable, in whole or in part, at any time up to 48 hours before the closing of the offering.
In connection with the offering, Research Capital will receive a cash fee equal to 6% of the gross proceeds from the offering, and Kootenay Silver will grant Research Capital on date of closing, non-transferable compensation options equal to 6% of the total number of units sold under the offering.
Each compensation option will entitle the holder to purchase one company unit at an exercise price equal to the offering price for a period of 36 months following the closing.
The offering is scheduled to close on or about the week of March 9, 2022, or such date as agreed upon between the company and Research Capital and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Exchange.
All units issued under the offering will have a hold period of four months and one day from closing.
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.
Contact Sean at sean@proactiveinvestors.com