VANCOUVER, BC, Aug. 20, 2021 /CNW/ – Kootenay Silver Inc. (“Kootenay” or the “Company”) (TSXV: KTN), is pleased to announce that its board of directors has unanimously approved a spinout of 80% of the Company’s Canadian exploration assets (the “Canadian Assets”), to its shareholders by way of a share capital reorganization effected through a statutory plan of arrangement (the “Arrangement”). The Canadian Assets are held through Kootenay’s wholly-owned subsidiary, Kootenay Resources Inc. (“Spinco”). Under the Arrangement, Kootenay will distribute 80% of the common shares (each, a “Spinco Share”) of Spinco to Kootenay’s shareholders. Once the Arrangement becomes effective, which will be triggered by the board of Kootenay, Kootenay shareholders will ultimately own shares in two public companies: Spinco, which will focus on the development of the Canadian Assets, and Kootenay, which will continue with the exploration and development of its Mexican assets.