Kootenay Silver (TSXV:KTN) announced that, following the issuance of Kootenay’s common shares as consideration for Kootenay’s acquisition of Northair Silver Inc. as well as Kootenay’s acquisition of the two and a half percent net smelter returns royalty from Coeur Capital, Inc. with respect to the future production of Kootenay’s La Cigarra project, Pan American has exercised its second tranche option to subscribe for additional common shares of Kootenay in order to maintain a ten percent ownership interest in Kootenay’s issued and outstanding shares.
Kootenay intends to use the net proceeds of the Second Tranche Investment for exploration activities and general corporate purposes.
Kootenay Silver President and CEO, James McDonald, stated:
We are delighted with Pan American’s vote of confidence in not only our Promontorio Mineral Belt assets, but also the La Cigarra opportunity we have acquired through the business combination with Northair Silver Inc. After the closing of the Second Tranche Investment, we will have a strong cash position to advance the La Cigarra project and pursue more potential consolidation and growth opportunities that will be accretive to the Kootenay shareholders.
The post Pan American Invests in Kootenay Silver to Maintain 10% Ownership appeared first on Investing News Network.