Pan American Invests in Kootenay Silver to Maintain 10% Ownership

http://www.juniorminingnetwork.com/junior-miner-news/press-releases/621-tsx-venture/ktn/19004-pan-american-invests-in-kootenay-silver-to-maintain-10-ownership.html

VANCOUVER, April 26, 2016 /CNW/ – Kootenay Silver Inc. (TSXV: KTN) (“Kootenay”) and Pan American Silver Corp. (TSX: PAA, NASDAQ: PAAS) (“Pan American”) are pleased to announce that, following the issuance of Kootenay’s common shares as consideration for Kootenay’s acquisition of Northair Silver Inc. (see Kootenay press release dated April 21, 2016) as well as Kootenay’s acquisition of the two and a half percent (2.5%) net smelter returns royalty from Coeur Capital, Inc. with respect to the future production of Kootenay’s La Cigarra project (see Kootenay press release dated March 29, 2016), Pan American has exercised its second tranche option to subscribe for additional common shares of Kootenay in order to maintain a ten percent (10%) ownership interest in Kootenay’s issued and outstanding shares (see Kootenay press release dated February 26, 2016) (the “Second Tranche Option“) in accordance with the Subscription Agreement dated February 15, 2016 entered into between Pan American and Kootenay, as amended (the “Subscription Agreement“).  As a result, Pan American intends to subscribe for 6,793,550 additional Kootenay common shares for an aggregate subscription price of CAD$1,553,431 (the “Subscription Price“).

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