Sprott Asset Management invests C$4 million via non-brokered financing
By Devika Patel
Knoxville, Tenn., Dec. 9 - Kootenay Gold Inc. said it plans a non-brokered private placement of units. The deal will raise C$6 million and Sprott Asset Management LP will invest C$4 million.
The company will sell 7.06 million units at C$0.85 apiece. Each unit consists of one common share and one half-share warrant.
Each whole warrant is exercisable at C$1.20 for two years. The strike price reflects a 31.87% premium to C$0.91, the Dec. 8 closing share price.
Proceeds will be used for additional work on Kootenay's Promontorio property and on its other properties and for general working capital.
Kootenay is a gold and silver company based in Vancouver, B.C. Its flagship property is the former producing Promontorio Silver Mine in Sonora, Mexico.
Issuer: | Kootenay Gold Inc.
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Issue: | Units of one common share and one half-share warrant
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Amount: | C$6 million
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Units: | 7.06 million
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Price: | C$0.85
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Warrants: | One half-share warrant per unit
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Warrant expiration: | Two years
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Warrant strike price: | C$1.20
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Agent: | Non-brokered
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Investor: | Sprott Asset Management LP (for for C$4 million)
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Pricing date: | Dec. 9
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Stock symbol: | TSX Venture: KTN
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Stock price: | C$0.91 at close Dec. 8
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Market capitalization: | C$34.29 million
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