Shares Outstanding: 44,335,600
VANCOUVER, Dec. 23 /CNW/ - Kootenay Gold Inc. ("Kootenay") (TSX Venture: KTN) is pleased to announce the completion of its previously announced
non-brokered private placement. The private placement was fully
subscribed raising gross proceeds of approximately $6,000,000. Sprott
Asset Management LP for and on behalf of certain Sprott Funds and
Managed Accounts purchased $4,000,000 of the Non-Brokered Placement.
A total of 7,059,000 units were issued. Each unit ("Unit"), priced at
$0.85 per Unit consists of one common share ("Share") of Kootenay and
one-half of one transferable common share purchase warrant ("Warrant").
Each whole Warrant entitles the holder to purchase one Share at a
purchase price of $1.20 per Share until December 22, 2012. Cash fees in
the aggregate amount of $137,700 were paid to arm's length parties and
certain advisory fees were paid in relation to the private placement.
All of the securities issued pursuant to the Offering will have a hold
period which expires April 23, 2011.
Stated Kootenay President and CEO James McDonald "We are pleased to
close our financing. The new influx of capital further strengthens our
treasury as we continue to accelerate drilling on our flagship
Promontorio Silver Project".
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.
Kootenay Gold is actively developing mineral projects in the Sierra
Madre Region of Mexico and in British Columbia, Canada. The Company's
flagship property is the former producing Promontorio Silver mine in
Sonora State, Mexico. The Company's objective is to develop near term
discoveries and long term sustainable growth. Kootenay's management and
technical team are proven professionals with extensive international
experience in all aspects of mineral exploration, operations and
venture capital markets. Multiple, ongoing J/V partnerships in Mexico
and Canada maximize potential for additional, new discoveries while
maintaining minimal share dilution.
To view an interview with James McDonald visit: www.kootenaygold.ca
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