Kootenay Silver Inc said it has amended certain terms of its best-efforts private placement offering, which was previously announced on October 18, 2022.
Under the amended terms, the offering of units of the company will be conducted at a price of $0.09 per unit for gross proceeds of up to $4 million.
The company said it intends to use the net proceeds from the offering for working capital requirements and other general corporate purposes.
READ: Kootenay Silver unveils private placing to raise gross proceeds of up to C$4M
Each unit in the offering will be comprised of one common share of the company and one common share purchase warrant. Each warrant shall be exercisable to acquire one common share at a price of $0.135 per warrant share for a period of 36 months from the closing of the offering.
The offering is being led by Research Capital Corporation, as the lead agent and sole bookrunner, on behalf of a syndicate of agents, including Red Cloud Securities Inc.
The agents 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 prior to the closing of the offering.
The offering is scheduled to close on or about the week of November 7, 2022, or such date as agreed upon between the company and the agents and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the exchange. The units to be issued under the offering will have a hold period of four months and one day from closing.
In connection with the offering, the agents will receive an aggregate cash fee equal to 6.0% of the gross proceeds from the offering, including in respect of any exercise of the agents' option. In addition, the company will grant the agents, on the closing date, non-transferable compensation warrants equal to 6.0% of the total number of units sold under the offering (including in respect of any exercise of the agents' option). Each compensation warrant will entitle the holder to purchase one unit at an exercise price per compensation warrant unit equal to the offering price for a period of 36 months following the closing.
The securities to be issued under the offering will be offered by way of private placement in each of the provinces of Canada, and such other jurisdictions as may be determined by the company, in each case, under applicable exemptions from the prospectus requirements under applicable securities laws.
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 under exemptions therefrom.
Kootenay Silver is an exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico. Supported by one of the largest junior portfolios of silver assets in Mexico, Kootenay continues to provide its shareholders with significant leverage to silver prices.
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 located in prolific mining districts in Sonora State and Chihuahua State, Mexico, respectively.
Contact the author at jon.hopkins@proactiveinvestors.com