Aug 13 (Reuters) - Kootenay Silver Inc KTN.V :
* KOOTENAY ANNOUNCES $5 MILLION INVESTMENT BY STRATEGIC INVESTOR ERIC SPROTT
* ANNOUNCE A NON-BROKERED PRIVATE PLACEMENT OF $5 MILLION CONSISTING OF 31,250,000 UNITS AT A PRICE OF $0.16 PER UNIT
* NET PROCEEDS WILL BE USED TO ADVANCE EXPLORATION OF COLUMBA SILVER PROJECT IN MEXICO, TO FUND WORK AT COPALITO, LA CIGARRA