KootenaySilver Inc. said July 7 that it plans to raise up to C$4 million byissuing no more than 10 million units at a price of 40 cents per unit under aprivate placement.

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

Proceeds will fund the exploration and development of theLa Cigarrasilver project in Mexico, where a 3,000-meter is expected to kick offin the third quarter. Funds will also be used for general working capital.

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