On November 2, 2021, Kootenay Silver Inc. (“Kootenay Silver”) and Kootenay Resources Inc. (“Kootenay Resources”) announced the completion of a spin-out transaction whereby Kootenay Silver spun-out 80% of the common shares of Kootenay Resources to its shareholders by way of a share capital reorganization effected through a statutory plan of arrangement (the “Arrangement”) under the provisions of the Business Corporations Act (British Columbia). Pursuant to the Arrangement, the shareholders of Kootenay Silver received common shares of Kootenay Resources by way of a share exchange, pursuant to which each common share of Kootenay Silver was exchanged for one new common share of Kootenay Silver and 0.04 of a common share of Kootenay Resources. Kootenay Resources was previously a wholly-owned subsidiary of Kootenay Silver. Kootenay Resources became a reporting issuer as a result of the Arrangement.
The Arrangement was approved by the shareholders of Kootenay Silver at the annual and special meeting of Kootenay Silver shareholders held on September 15, 2021. The Supreme Court of British Columbia approved the Arrangement in its final order dated September 21, 2021.
Kootenay Silver is a mineral exploration company actively engaged in the discovery and development of mineral projects in the Sierra Madre Region of Mexico.
Kootenay Resources is a mineral exploration company that intends to advance its interest in certain Canadian mineral properties.
Further details regarding the Arrangement and Kootenay Silver can be found on Kootenay Silver’s website. The common shares of Kootenay Silver trade under the symbol “KTN” on Tier 1 of the TSX Venture Exchange.