VANCOUVER, Sept. 13, 2018 /CNW/ - Kootenay Silver Inc.  (TSXV: KTN) (the "Company" or "Kootenay") is pleased to announce  Capstone Mining Corp. (TSX: CS) ("Capstone Mining") has informed the Company that an exploration program is underway on the La Mina Project (the "Property"), located 180 kilometers southeast of the city of Hermosillo in Sonora State, Mexico.   

Detailed geological mapping, rock chip and stream sediment sampling is underway in order to define potential drill targets on the Property.  The Company is looking forward to Capstone advancing the project towards drill stage.  Kootenay will report on results after programs are complete and Capstone reports them to the Company.

As announced on June 28th, 2018 (see KTN NR 18-14), Kootenay entered in to an option agreement (the "Agreement") with Capstone Mining, whereby Capstone Mining can earn an initial 60% ("Initial Earn In") interest in La Mina by making staged cash payments totalling US$600,000 and incurring exploration expenditures totalling US$4 million over 4 years.  Following the Initial Earn In, Capstone may earn up to a 100% interest in La Mina in stages by completing certain milestones including preparation of a preliminary economic assessment, a pre-feasibility study and paying an additional aggregate total of US$8.4 million to Kootenay in stages at each of the various milestones.