News Column

KOOTENAY UPDATES $2,500,000 NON-BROKERED PRIVATE PLACEMENT

June 24, 2014



ENP Newswire - 24 June 2014

Release date- 20062014 - Kootenay Silver Inc. (TSX Venture: KTN.V) announces that it has amended its previously announced Non-Brokered private placement of from up to 7.35 million units, to up to approximately 8.33 million units at a purchase price of $0.30 per Unit, for aggregate gross proceeds to Kootenay of up to $2,500,000.

Private Placement

Each Unit will consist of one common share ('Common Share') of Kootenay and one transferable share purchase warrant ('Warrant'). Each whole Warrant will entitle the holder to acquire one Common Share at an exercise price of $0.55 (from $0.60) for a period of 24 months from the closing date of the Private Placement, with no acceleration clause. All other terms of the Private Placement remain unchanged. Cash finders' fees within TSX Venture Exchange policy guidelines may be paid in connection with the Private Placement.

The net proceeds from the Private Placement will be used to finance additional work on Kootenay's Promontorio property, which includes the new La Negra Breccia target, its other properties and for general working capital. 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.

Current NI 43-101 Compliant Silver Resource

The current mineral estimate on Promontorio effective date March 31, 2013 contains a combined Measured and Indicated silver resource of 92,428,000 silver equivalent ounces (39.9M oz's Ag, 508K oz's Au, 394.8M lb's Pb, 462.2M lb's Zn). In addition to the measured and indicated silver resources, there are an additional 26,814,000 silver equivalent ounces in the Inferred category (12.8M oz's Ag, 147 oz's Au, 99.5M lb's Pb, 109.1M lb's Zn).

Measured and Indicated resources are contained in open pit resources of 44,504,000 tonnes grading an average of 64.32 gpt silver equivalent (27.77 gpt Ag, 0.35 gpt Au and 0.87% Pb+Zn) and resources outside of the open pit of 215,000 tonnes grading an average of 56.96 gpt silver equivalent (22.89 gpt Ag, 0.28 gpt Au and 0.95% Pb+Zn).

Inferred resources are within open pit resources of 14,564,000 tonnes grading an average of 51.95 gpt silver equivalent (24.95 gpt Ag, 0.28 gpt Au and 0.59% Pb+Zn) and resources outside of the open pit of 1,265,000 tonnes grading an average of 61.17 gpt silver equivalent (26.57 gpt Ag, 0.37 gpt Au and 0.74% Pb+Zn).

The current NI 43-101 Resource Estimation conducted on Promontorio by SRK Consulting Inc. (U.S.) of Lakewood, Colorado, included gold assay results in the updated resource estimation. As a result of the addition of gold, the mineral resource is now contained in a single larger optimized Whittle Pit, as opposed to two individual smaller pits as reported in the August 21, 2012 resource estimate.

The decision to include gold in the resource estimation follows extensive metallurgical testing and technical analysis conducted by ALS Minerals of Kamloops, British Columbia that confirmed up to 94.5% recovery of gold from pyrite concentrates from the Promontorio resource can be achieved using a post pressure oxidation treatment process.

ABOUT KOOTENAY

Kootenay Silver Inc. is actively developing mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada. Its flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico. Kootenay's objective is to develop near term discoveries and long-term sustainable growth.

Its 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.

Contact:

Kootenay Silver Inc.

James McDonald

CEO and President

Tel: 403-238-6986

Ken Berry

Chairman

Tel: 604-601-5652, 1-888-601-5650

Forward-Looking Statements

The information in this news release has been prepared as at June 19, 2014. Certain statements in this news release, referred to herein as 'forward-looking statements', constitute 'forward-looking statements' under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as 'expected', 'may', 'will' or similar terms.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Kootenay as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown could cause actual results to be materially different from those expressed or implied by such forward-looking statements.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as otherwise required by law, Kootenay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Kootenay's expectations or any change in events, conditions or circumstances on which any such statement is based.

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.

This press release uses the terms 'Measured', 'Indicated', and 'Inferred' resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. 'Inferred Mineral Resources' have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category.

Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.


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Source: ENP Newswire


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