Shares Outstanding: 37,276,600
VANCOUVER, Dec. 9 /CNW/ - Kootenay Gold Inc. ("Kootenay") (TSX Venture: KTN.V) is pleased to announce a Non-Brokered private placement (the "Private
Placement") of up to 7.06 million units (each "Unit") at a purchase
price of $0.85 per Unit, for aggregate gross proceeds to Kootenay of up
to $6,000,000. Sprott Asset Management LP for and on behalf of certain
Sprott Funds and Managed Accounts has agreed to purchase $4,000,000 of
the Non-Brokered Placement.
Each Unit will consist of one common share ("Common Share") of Kootenay
and one-half of one transferable share purchase warrant ("Warrant").
Each whole Warrant will entitle the holder to acquire one Common Share
at an exercise price of $1.20 for a period of 24 months from the
closing date of the Private Placement. Finder's fees in cash or units
and finder's warrants may be paid in connection with the Private
Placement. All of the securities issued pursuant to the Private
Placement will be subject to a minimum four month hold period. The
Private Placement and payment of any finder's fee are subject to
acceptance by the TSX Venture Exchange.
The net proceeds from the Private Placement will be used to finance
additional work on Kootenay's Promontorio property, its other
properties and for general working capital.
Drilling the Promontorio Silver Property
Kootenay's current 10,000-meter Drill Phase is part of an important program to substantially expand the known
43-101 mineral resource at Promontorio. The first four holes have been
drilled along a single fence across the western side of the Pit Zone,
establishing mineralization another 100 meters outside the current
43-101 resource which includes the high grade intercept of 262.4 g/t Ag
and 1.1 % Pb+Zn over 13.5 meters including 819 g/t Ag and 2.57% Pb+Zn
over 3 meters in hole PC 004.
Kootenay is actively developing mineral projects in the Sierra Madre
Region of Mexico and in British Columbia, Canada. The Company flagship
property is the former producing Promontorio Silver Mine in Sonora
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release. Cautionary Note to US Investors: This news release may contain information about adjacent properties on
which we have no right to explore or mine. We advise U.S. investors
that the SEC's mining guidelines strictly prohibit information of this
type in documents filed with the SEC. U.S. investors are cautioned that
mineral deposits on adjacent properties are not indicative of mineral
deposits on our properties. This news release may contain
forward-looking statements including but not limited to comments
regarding the timing and content of upcoming work programs, geological
interpretations, receipt of property titles, potential mineral recovery
processes, etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties.
Actual results may differ materially from those currently anticipated
in such statements.
SOURCE Kootenay Silver Inc.
For further information: For further information:
James McDonald, CEO and President at 403-238-6986
Ken Berry, Chairman at 604-601-5652; 1-888-601-5650
To view an interview with James McDonald visit:www.kootenaygold.ca