Kootenay Silver (TSXV: KTN; US-OTC: KOOYF) has announced a $2-million investment from Sprott Asset Management through a non-brokered private placement of 7.7 million units at 26 ? per unit.
Each unit consists of one common share and one-half of one common share purchase warrant that entitles the holder to buy an additional Kootenay share at 40 ? per share for 24 months following the closing date of the private placement.
Kootenay's president and CEO James McDonald says the company is happy to have secured the support of Sprott Asset Management. This investment follows an earlier investment from Eric Sprott in August in which Sprott invested $5 million in Kootenay Silver via a non-brokered private placement of 31.2 million units at 16 ? per unit.
Net proceeds from the latest private placement will be used to advance exploration of Kootenay's Columba silver project in Chihuahua state, Mexico, and could see the addition of another drill rig to expedite the current drill program. The investment also will be used to fund further work at the Copalito silver-gold project in Sinaloa state, the La Cigarra silver project in the Parral mining district in Chihuahua state and other projects, as well as for general working capital purposes.
At press time, Kootenay's shares were trading at 28 ? per share within a 52-week range of 10.5 ? to 31.5 ?. The company has 246 million common shares outstanding for a $68.9-million market capitalization.