Kootenay Silver Announces Public Offering for Gross Proceeds of Up to C$5.0 Million

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, April 08, 2024 (GLOBE NEWSWIRE) -- Kootenay Silver Inc. (“Kootenay” or the “Company”) (TSXV: KTN) is pleased to announce that it has entered into an agreement with Red Cloud Securities Inc. to act as lead agent and sole bookrunner on behalf of a syndicate of agents (collectively, the “Agents”), in connection with a “best efforts” public offering (the “Offering”) for the sale of up to 4,464,286 units of the Company (each, a “Unit”) at a price of C$1.12 per Unit (the “Offering Price”) for gross proceeds of up to C$5,000,000.

Each Unit will consist of one common share of the Company (each, a “Common Share”) and one half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant shall entitle the holder to purchase one Common Share of the Company at a price of C$1.68 at any time on or before that date which is 24 months after the closing date of the Offering.

The Company has granted to the Agents an option, exercisable, in whole or in part, for a period of up to 30 days after and including the closing date of the Offering, to sell the number of additional Units equal to up to 15% of the number of Units sold pursuant to the Offering at the Offering Price to cover over allotments, if any. The Offering is expected to close on or about April 25, 2024 (the “Closing Date”) and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

The net proceeds raised under the Offering will be used for the advancement of the Company’s Columba Silver Project in Mexico as well as for general working capital and corporate purposes.

The Units will be sold by way of a prospectus supplement to be filed in all of the provinces of Canada to supplement the short form base shelf prospectus of the Company dated March 27, 2024. The Units may also be sold in the United States on a private placement basis pursuant to one or more exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and in such other jurisdictions outside of Canada and the United States, in each case in accordance with all applicable laws provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction.