09:52 AM EDT, 03/29/2016 (MT Newswires) -- Kootenay Silver (KTN.V) said Tuesday it has signed an agreement with Coeur Capital to acquire the 2.5% net smelter royalty on future production from Northair Silver's (INM.V) La Cigarra project, located in Chihuahua, Mexico. The US$2.5 million acquisition is subject to the acceptance of the TSX Venture Exchange.

Under the terms of the agreement, Kootenay will pay to Coeur US$250,000 in cash upon signing followed by a second cash payment of US$250,000 to be made on April 19, 2016.

In addition, Kootenay Silver will issue to Coeur common shares equal to US$2 million at a share price of $0.275 per share, which will result in the issuance of 9,629,091 common shares of Kootenay.