Kootenay Silver Inc said it has closed its previously-announced brokered private placement offering for gross proceeds of C$4.78 million consisting of 29,881,000 units of the company, at a price of $0.16 per unit, with a non-brokered portion of the offering for gross proceeds of approximately C$1.47 million consisting of 9,181,500 units at the offering price, for total gross proceeds to the company of C$6.25 million.
The company said it intends to use the net proceeds from the offering for exploration activities, working capital requirements, and other general corporate purposes.
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Each unit is comprised of one common share of the company and one common share purchase warrant. Each warrant is exercisable to acquire one common share at an exercise price of $0.22 per warrant share for a period of 36 months from the closing of the offering.
The offering was led by Research Capital Corporation acting as the sole agent and sole book runner.
In connection with the offering, the agent received a cash fee of $361,740. In addition, the company granted the agent 2,260,875 non-transferable compensation warrants.
Each compensation warrant entitles the holder thereof to purchase one unit at an exercise price of $0.16 per common share for a period of 36 months following the closing. The company also paid aggregate cash finder's fees of $13,260 to two arm's length finders in connection with the offering.
James McDonald, CEO of the company, subscribed for 1,000,000 units. McDonald now beneficially owns, or exercises control or direction over, 4,028,200 common shares, or approximately 1.12% of the issued and outstanding common shares.
Raj Kang, the chief financial officer of the company, subscribed for 81,000 units. Kang now beneficially owns, or exercises control or direction over 497,500 common shares, or approximately 0.14% of the issued and outstanding common shares.
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