Kootenay Silver Inc. [KTN-TSXV] said it has raised $18 million from a bought deal private placement offering consisting of 8.0 million common shares priced at $2.25 per share. It said the total amount raised includes the exercise in full of the over-allotment available to the underwriters.
Kootenay Silver is engaged in discovery and development of several mineral projects in the Sierra Madre region of Mexico, including the Columba and La Cigarra silver projects in Chihuahua, and the Promontorio and La Negra silver projects in Sonora.
The company said net proceeds raised will be used to advance the company’s Columba and La Cigarra projects.
On Tuesday, Kootenay Silver shares eased 3.03% or $0.06 to $1.92. The shares trade in a 52-week range of $2.83 and 84 cents.
Kootenay recently engaged two engineering firms to conduct a preliminary economic assessment on its La Cigarra silver deposit, which sits in the famous Parral Mining District. The PEA is expected to be finished in the second quarter of this year.
La Cigarra is host to a pit constrained resource of 51.57 million silver ounces in the measured and indicated category in 15.73 million tonnes of grade 102 g/t silver, and 0.07 g/t gold, 0.16% lead and 0.21% zinc (60.56 million ounces of silver equivalent AgEq) and another 11 million ounces of inferred silver in 3.37 million tonnes of grade 102 g/t silver, 0.06 g/t gold, 0.2% lead and 0.19% zinc (12.85 million ounces of AgEq).
“In late 2023 and early 2024, in anticipation of silver decisively breaking above US$30 per ounce, we updated our resource estimates on the existing deposits at La Cigarra and Promontorio, and at the same time published a maiden resource at the La Negra deposit,’’ said Kootenay CEO James McDonald. “These three deposits are well positioned to be quickly advanced with silver experiencing a nominal record high of US$94.09 per ounce driven by a multi-year supply deficit and intense industrial demand,’’ he said. “As such, we have commissioned a preliminary economic assessment on the first of those three deposits, La Cigarra, for delivery in Q2. At the same time, we are aggressively drilling Columba to achieve our goal of increasing its maiden resource of 54 million ounces of silver to 100 million ounces, followed by a PEA of its own.’’
Kootenay was in the news last year when Aztec Minerals Corp. [AZT-TSXV, AZZTF-OTCQB] said it continues to intersect strong gold grades over broad widths at the California Zone at its Cervantes Project in Sonora Mexico. Aztec is exploring the project in a joint venture with Kootenay Silver.
The company said it continues to intersect broad well mineralized gold mineralization from a reverse circulation drill program at the California target. Highlights include results for hole CAL22-012, which returned 152.4 metres of grade 0.87 g/t gold, including 33.5 metres of grade 2.05 g/t gold.
The property is held 65% by Aztec Minerals and 35% by Kootenay Silver.
Source: Resource World Magazine – Read More
