Kootenay Silver's strategy has been to build a company incorporating both the property ownership dilution business model and share dilution model. They have several projects joint ventured with other junior explorers who pay costs for exploration and issue KTN shares in their company while Kootenay has retained 100% ownership of their flag ship Mexican property - the advanced stage Promontorio silver project.
The 25,000-meter drill program now in progress on Kootenay's Promontorio Silver Project represents the single largest and most expansive drilling campaigns conducted on Promontorio to date. The objective of the program is to substantially build on and expand the existing NI 43-101 silver resource identified on the project by AGP Mining Consultants in 2010. Two diamond drill rigs are currently operating on Promontorio and are focused on the numerous medium to high-grade silver intercepts identified across the project's 1 kilometer strike length.
Currently the project hosts an NI 43 101 compliant resource containing 8.9 million indicated ounces of silver plus 1.17 million ounces of inferred silver, 99.3 million indicated pounds of lead plus 13.4 million inferred pounds of lead and 110.8 million indicated pounds of zinc plus 14.3 million inferred pounds of zinc.
Kootenay Silver Inc.'s board of directors has approved the adoption of an advance notice policy for the purpose of providing shareholders, directors and management of Kootenay with a clear framework for nominating directors. The policy is meant to: (i) facilitate an orderly and efficient annual general or, where the need arises, special meeting, process; (ii) ensure all shareholders receive adequate notice of the director nominations and sufficient information with respect to all nominees; and (iii) allow shareholders to register an informed vote having been afforded reasonable time for appropriate deliberation.
The policy contains a provision that requires advance notice to Kootenay in circumstances where nominations of persons for election to the board are made by shareholders of Kootenay. The policy fixes deadlines by which holders of record of common shares of Kootenay must submit director nominations to Kootenay prior to any annual or special meeting of shareholders, and sets forth the information that a shareholder must include in the notice to Kootenay for an effective nomination to occur. No person will be eligible for election as a director of Kootenay unless nominated in accordance with the provisions of the policy.
In the case of an annual meeting of shareholders, the deadline for notice to Kootenay pursuant to the policy is not less than 55 days prior to the date of the annual meeting of shareholders; provided, however, that in the event that the annual meeting of shareholders is to be held on a date that is less than 65 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.
In the case of a special meeting (which is not also an annual meeting) of shareholders called for the purpose of electing directors (whether or not called for any other purposes), the deadline for notice to Kootenay pursuant to the policy is no later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.
At the next annual meeting of shareholders, the shareholders of the company will be asked to ratify and confirm the adoption of the policy. The board has determined that the policy is effective, and in full force and effect as of May 17, 2013.
The full text of the policy is available via SEDAR under Kootenay's issuer profile or upon request by contacting the corporate secretary at 604-601-5650.