Kootenay Silver Announces Closing of Bought Deal LIFE Private Placement for Gross Proceeds of C$18 Million
High-grade Mexican silver exploration backed by aggressive capital raises and persistent drilling.
The most recent news (February 10, 2026) confirms the closing of a C$18 million "Bought Deal" private placement under the Listed Issuer Financing Exemption (LIFE). Kootenay issued 8,000,001 common shares at a price of C$2.25 per share. The financing was significantly upsized from the original C$10 million announced on January 22, 2026. Proceeds are earmarked for the advancement of the Columba and La Cigarra silver projects in Mexico, as well as working capital. Notably, this financing was conducted without warrants attached to the units for the primary investors, though finders received 480,000 warrants at the same C$2.25 exercise price.
- Liquidity and Funding: The C$18 million raise is a significant injection, especially considering the company already held C$20.8 million as of September 30, 2025. This provides the company with a massive cash buffer (likely exceeding C$35 million currently) to execute the 50,000-meter drill program at Columba and deliver the commissioned Preliminary Economic Assessment (PEA) at La Cigarra.
- Valuation Validation: The financing was priced at C$2.25 per share. While the stock has recently pulled back from its January highs of C$2.83, the ability to close an upsized C$18 million bought deal at $2.25 demonstrates strong institutional confidence and sets a high floor for valuation relative to historical levels.
- Project Acceleration: The news confirms the pivot from a pure exploration firm to a developer. With the La Cigarra PEA expected in Q2 2026 and aggressive drilling at Columba to double the current 54 Moz Ag resource to 100 Moz, the company is now fully funded for its most critical catalysts.
Kootenay Silver is a Canadian-listed explorer/developer focused on silver in Mexico. Its flagship project is the Columba Silver Project in Chihuahua, a high-grade epithermal vein system. - Columba Resource: Maiden Inferred Resource of 54.1 million ounces of silver at 284 gpt Ag. - La Cigarra: Secondary flagship with 51.5 Moz Ag (Measured & Indicated) and 11 Moz Ag (Inferred). A PEA is currently underway. - Property Status: Properties are not royalty-free. Columba carries 2% NSR royalties with buyback options; La Cigarra carries various royalties including a $0.10/oz payment.