Kootenay Silver Inc. (TSX-V:KTN), the explorer focused on advancing assets in the Sierra Madre region of Mexico, has announced a private placing to raise gross proceeds of up to C$4 million.
Research Capital Corp will act as the lead agent and sole bookrunner, on behalf of a syndicate of agents, including Red Cloud Securities Inc. Units of the company will be issued at C$0.10 each.
Each unit is made up of one company share and one share purchase warrant.
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Each warrant is exercisable to buy one company share at C$0.15 each for 36 months from the closing of the offering, which is scheduled to be on or around the week beginning November 7 this year.
The agents will also have the option to offer for sale up to a further 15% of units sold at the offer price, which is exercisable, in whole or in part, at any time up to 48 hours before closing.
"The company intends to use the net proceeds from the offering for working capital requirements and other general corporate purposes," the company said in a statement.
Kootenay said it is supported by one of the largest junior portfolios of silver assets in Mexico.
The company remains focused on the expansion of its current silver resources, new discoveries and the near-term economic development of its priority silver projects in the prolific mining districts in Sonora state and Chihuahua state.
Contact the writer at giles@proactiveinvestors.com