Kootenay Gold Inc.

Kootenay Gold Inc.

December 05, 2006 17:20 ET

Kootenay Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 5, 2006) - Kootenay Gold Inc. (TSX VENTURE:KTN) is pleased to announce a private placement of up to 3,076,925 units at $0.65 each for gross proceeds of up to $2,000,000 CDN. Each Unit will consist of one common share and one share purchase warrant. Each share purchase warrant will be exercisable to purchase one common share at $0.80 for a period of 18 months. Subject to TSX Venture Exchange approval, a finders fee may be payable. Funds received from the private placement will be used for the development of the Kootenay's resource properties and working capital requirements.

Kootenay has also issued an aggregate of 400,000 incentive stock options exercisable for a period of five years at $0.71 per share to various consultants and employees of the Company. Kootenay has also appointed Tiziano Romagnoli to its advisory committee. Mr. Romagnoli is a fund manager and investment adviser based in Geneva, Switzerland, with more than 20 years experience in the investment banking industry.

About Kootenay

Kootenay is an emerging gold and silver company focused on acquiring 100% interests mineral properties through acquisitions and exploration discoveries. During the past four years Kootenay has successfully made four new mineral discoveries in the Rossland Republic Gold Trend of British Columbia known as the JJ North, JJ South, Connor Creek and the Sunrise Properties. In addition to its mineral discoveries, the company acquired the Santa Lucia and the Sabina Property in Northwest Mexico. Joint-venture agreements with several companies have actively advanced these projects, as the company continues to expand its operations within Mexico and acquire projects with the potential for large-scale discoveries.

Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Kootenay Gold Inc.
    James McDonald
    (403) 238-6986
    Kootenay Gold Inc.
    Ken Berry
    (604) 683-2214 or 1-888-268-8688
    Website: www.kootenaygold.ca