Vancouver, British Columbia, April 24, 2013 - Kootenay Silver (TSXV:KTN) is receiving an investment of $4,750,000 from Agnico-Eagle (TSX:AEM). The investment will consist of 6,250,000 units at a price of $0.76 per unit, with each unit consisting of one common share and one-half of one common share purchase warrant, with each full warrant exercisable at $1.08 for a two year period. Following the closing of this non-brokered private placement, which is expected to occur on April 26, 2013, Agnico-Eagle will own 9.96% of Kootenay's issued and outstanding shares on a non-diluted basis.
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Kootenay's flagship property is the former producing Promontorio Silver mine in Sonora State, Mexico.
A NI 43-101 mineral estimate on Promontorio, dated October 4, 2012, reported a combined Measured and Indicated silver resource of 61,679,000 silver equivalent ounces (37.5 million ounces Silver, 372 million pounds Lead, 436.9 million pounds Zinc). In addition to the Measured and Indicated silver resources, there are an additional 14,469,000 silver equivalent ounces in the Inferred category (9.6 million ounces Silver, 77.6 million pounds Lead, 85.3 million pounds Zinc). (Measured and Indicated resources are contained in open pit resources of 36,018,000 tonnes grading an average of 51.35 grams per tonne silver equivalent (31.18 grams per tonne silver and 0.98% lead & zinc) and underground resources of 2,216,000 tonnes grading an average of 48.75 grams per tonne silver equivalent (30.15 grams per tonne silver and 0.98% lead & zinc). Inferred resources within open pit resources of 9,136,000 tonnes grading an average of 42.86 grams per tonne silver equivalent (28.32 grams per tonne silver and 0.17% lead & zinc) and underground resources of 3,077,000 tonnes grading an average of 53.90 grams per tonne silver equivalent (35.94 grams per tonne silver and 0.88% lead & zinc).
The company recently announced that SRK Consulting has been commissioned to provide an updated, independent resource calculation on the Promontorio Silver Project.
James McDonald, President and CEO of Kootenay commented, "We are very pleased that Agnico-Eagle has committed to become a strategic investor in Kootenay Silver. Agnico's investment provides us with a substantial alternative source of capital to the open market from a recognized world leader in precious metals mining, development and exploration. Agnico's commitment to exploration and mining in Mexico directly coincides with our own commitment to the exploration and development of Promontorio. This investment recognizes the quality and near-term potential of our flagship Promontorio Silver project and our other principal exploration targets in Sonora, Mexico."
Sean Boyd, President and CEO of Agnico-Eagle commented, "We are pleased to be involved with the advancement of Promontorio, a project that will continue to benefit from Kootenay's capable exploration team. This investment is also consistent with our desire to increase our presence in Sonora State."
The company intends to use the net proceeds of the offering for the advancement of the Promontorio Silver project and general working capital.
Kootenay Silver Inc. is also actively developing other mineral projects in the Sierra Madre Region of Mexico and in British Columbia, Canada.
The company is trading at $0.80, and with approximately 62.7 million shares outstanding, is capitalized at $50.2 million.
To maximize exposure to new discoveries and fast track development, Kootenay has entered into a number of key joint ventures on many, but not yet all, of these other properties. For more information, including potential joint venture opportunities, please visit www.kootenaysilver.com (http://www.kootenaysilver.com/), or contact James McDonald at 403-238-6986, or investor relations at 604-601-5652.
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