VANCOUVER, BC, Oct. 27, 2021 /CNW/ - Kootenay Silver Inc.
("Kootenay" or the "Company") (TSXV: KTN) is pleased
to announce that further to its press releases dated August 10, 2021 and September 17, 2021, the Company intends to make
the previously announced spin-out transaction of the Company
effective at 12:01 a.m. (Vancouver time) on October 29, 2021 (the "Effective Date").
The Company has received a final order from the Supreme Court of
British Columbia dated
September 21, 2021, and shareholder
approval pursuant to an annual and special meeting of the Company
held on September 15, 2021, to
implement the spin-out of 80% of the Company interest in mineral
exploration assets located in Canada to its shareholders by way of a share
capital reorganization effected through a statutory plan of
arrangement (the "Arrangement") with Kootenay Resources Inc.
("Spinco"), a wholly-owned subsidiary of the Company.
Pursuant to the Arrangement, the holders of common shares of the
Company on October 28, 2021 will
receive one new common share of the Company (each, a "Kootenay
Silver Share") and 0.04 common shares of Spinco (each, a
"Spinco Share"). The existing common shares of the Company
are expected to be delisted from the TSX Venture Exchange (the
"TSXV") at the close of business on October 28, 2021. The Kootenay Silver Shares are
expected to commence trading on the TSXV at the market open on
October 29, 2021. The CUSIP numbers
of the Kootenay Silver Shares and the Spinco Shares will be
500583703 and 50058V107, respectively.
Computershare Investor Services Inc. ("Computershare")
will forward replacement share certificates or electronic
statements to each registered Company shareholder that is entitled
to receive them, representing their allotted number of Kootenay
Silver Shares and Spinco Shares in accordance with the Arrangement.
Letters of transmittal have been mailed to registered holders of
common shares of the Company, which must be completed and returned
to Computershare together with the share certificates of the
Company at the address specified in the letter of transmittal, in
order for Company shareholders to receive Kootenay Silver Shares
and Spinco Shares following the Effective Date. A copy of the
letter of transmittal is also available under the Company's profile
on SEDAR at www.sedar.com.
For further details of the Arrangement, please refer to the
Company's management information circular dated August 12, 2021, which is filed on SEDAR under
the Company's profile. The Arrangement remains subject to the final
approval of the TSXV.
About Kootenay Silver Inc.
Kootenay is an exploration company actively engaged in the
discovery and development of mineral projects in the Sierra Madre
Region of Mexico and in
British Columbia, Canada.
Supported by one of the largest junior portfolios of silver assets
in Mexico, Kootenay continues to
provide its shareholders with significant leverage to silver
prices. The Company remains focused on the expansion of its current
silver resources, new discoveries and the near-term economic
development of its priority silver projects located in prolific
mining districts in Sonora, State
and Chihuahua, State, Mexico,
respectively.
On behalf of the board of directors of the
Company:
James McDonald,
CEO and President
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
Certain statements in this press release may be considered
forward-looking information. These statements can be identified by
the use of forward-looking terminology (e.g., "expect","
estimates", "intends", "anticipates", "believes", "plans" or
variations of such words and phrases or statements that certain
actions, events or results "will" occur). Forward-looking
statements in this press release include, but are not limited to,
statements regarding the completion of the Arrangement, the
Effective Date and the Company obtaining final TSXV approval to the
Arrangement.
Such forward-looking information involves known and unknown
risks -- including the Company not obtaining the final approval of
the TSXV; the Arrangement not being completed; the availability of
funds; the results of financing and exploration activities;
unanticipated costs, expenses, or liabilities associates with the
Arrangement; the interpretation of exploration results and other
geological data; or unanticipated costs and expenses and other
risks identified by Kootenay in its public securities filings that
may cause actual events to differ materially from current
expectations. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. Kootenay does not undertake to update any
forward-looking statements, except as may be required by applicable
securities laws.
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SOURCE Kootenay Silver Inc.