Kootenay Silver Inc. said Aug. 22 that it closed its nonbrokered private placement, fully subscribed by Eric Sprott through 2176423 Ontario Ltd., for gross proceeds of C$5.0 million that will be used for exploration of the Columba silver mine and for further work in the Copalito and La Cigarra silver-gold projects, all in Mexico, and for general working capital.
Sprott acquired 31.25 million units of the company at 16 cents per unit to add to the 400,000 common shares of Kootenay Silver that Sprott has already owned before.
As a result of the private placement, Sprott now has 31.65 million shares and 15,625,000 warrants of the company, representing approximately 11.4% of the issued and outstanding common shares on a non-diluted basis, and approximately 16.1% of the issued and outstanding common shares on a partially diluted basis.
Kootenay Silver said that Sprott may acquire or sell securities of the company, including on the open market or through private acquisition in the future, depending on market conditions.
In March, the company closed a private placement of C$7 million, higher than the C$2.5 million targeted the month prior.
