Pan AmericanSilver Corp. is looking to subscribe for an additional 6,793,550Kootenay Silver Inc.common shares for C$1.6 million in order to maintain a 10% interest.
According to an April 26 news release, the company willacquire 5,723,550 common shares at 22 cents each for C$1.3 million and1,070,000 Kootenay shares at 27.5 cents each for C$294,250.
Under a February subscription agreement, Pan American exercised thesecond tranche option to maintain its ownership following Kootenay's of as well as the from Coeur CapitalInc. on the future production at the La Cigarra silver project in Mexico.
Kootenay intends to use the net proceeds of the secondtranche investment for exploration activities and general corporate purposes.
Kootenay President and CEO James McDonald said, "Afterthe closing of the second tranche investment, we will have a strong cashposition to advance the La Cigarra project and pursue more potentialconsolidation and growth opportunities that will be accretive to the Kootenayshareholders."