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Kootenay Silver increases La Cigarra equity financing to C$4.5M

KootenaySilver Inc. said July 8 that it has increased the amount of itsoffering to 11.3 million units from the initial 10 million units to up itsaggregate gross proceeds to C$4.5 million from C$4 million.

The company also said Pan American Silver Corp. will exercise itsparticipation right in full to maintain its pro rata 10% interest in theKootenay.

Kootenay also increased the number of units that may beacquired under the option granted to the agent to 1,687,500 units from 1.5million units.

Each unit consists of 1 share and 0.25 of a share purchasewarrant, exercisable at 55 cents per share before April 21, 2021.

Assuming the full exercise of the agent's option and thenon-brokered offering, the company will issue 14,187,500 units for aggregategross proceeds of C$5.7 million.

Proceed from the offering will be used to fund theexploration and development of Kootenay's La Cigarra silver-gold-lead-zinc project inMexico and for general working capital purposes.

The company expects the offering to close on or before July28.