VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2008) - Kootenay Gold Inc. ("Kootenay";) (TSX VENTURE:KTN) is pleased to announce that it has closed its non-brokered private placement (the "Offering") of 5,500,000 units ("Units") at a price of $1.50 per Unit, for total gross proceeds of CDN $8,250,000.
Each Unit consists of one common share (a "Share") of Kootenay and one-half of one non-transferable common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one Share at a purchase price of $1.80 per Share until August 29, 2009. Finders' fees were paid to certain finders at arm's length to Kootenay in the aggregate of $369,285 cash, 94,500 units (the "Finder's Units";) and 340,690 non-transferable common share purchase warrants (the "Finder's Warrants"). Each Finder's Unit has the same terms as the Units offered under the Offering. Each Finder's Warrant entitles the holder to purchase one common share (a "Finder's Warrant Share";) of Kootenay at a purchase price of $1.70 per Finder's Warrant Share until August 29, 2009. All of the securities issued pursuant to the Offering will have a hold period which expires June 30, 2008. The net proceeds of the Offering will be used for the development of Kootenay's resource properties and working capital requirements.
ABOUT KOOTENAY
Kootenay is an emerging exploration Company actively developing mineral projects in British Columbia, Canada and the Sierra Madre Region of Mexico. The Company's top priority remains the ongoing development of its Promontorio Silver project, which encompasses the former producing Promontorio Silver Mine in Northwest Mexico.
To view a live interview with Jim McDonald on Kootenay's vision and strategy visit: www.kootenaygold.ca.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
