Resource News

TSXV:KTN

A recent article on BullMarketRun.com highlighted Kootenay Silver (TSXV:KTN) which executed flawlessly at the bottom of the market cycle at the beginning of this year to secure a leading position in the Mexican Silver sector.

A recent article on BullMarketRun.com highlighted Kootenay Silver (TSXV:KTN) which executed flawlessly at the bottom of the market cycle at the beginning of this year to secure a leading position in the Mexican Silver sector.
As quoted in the press article:

Mr. Ross Beaty, a geologist and lawyer, founded Pan American Silver (PAA, TSX) in 1994 with the aim of giving investors leveraged exposure to higher Silver prices. Via acquisition and good old-fashioned exploration, he and his team methodically accumulated quality Silver projects while metal prices were low. As Silver appreciated through the 2000‘s, Pan American’s stock went with it, except more dramatically – gaining over 1000% from low to high.
Led by CEO James McDonald, the Kootenay of today resembles Pan American back then. Via acquisition and good old-fashioned exploration, KTN’s current property portfolio is highlighted by Promontorio, La Negra and La Cigarra, and some very promising earlier stage opportunities.
The “timing” component of this plan cannot be understated. For it to work, acquirers cannot overpay for assets. Kootenay paid just 21 cents for each ounce of known Silver in the ground when it acquired Northair Silver earlier this year at the bottom of the market cycle. This compares favorably to Kootenay’s per-ounce “discovery cost”, roughly 45–50 cents (a respectable number in its own right).
Kootenay’s timing was impeccable as far as the Northair acquisition was concerned. Therefore, the price was right.
What catalysts could move KTN higher in the months ahead?
Pan American will be drilling at both La Negra and the surrounding Promontorio mineral belt.   As part of its option agreement for Year 1, Pan American is obligated to spend at least $1 million (U.S.) at La Negra and at least $2 million (U.S.) on otherexploration and development targets in the Promontorio mineral belt other than La Negra and Promontorio.
In addition, Kootenay has a 3,000 m targeted drill program planned for Q3 at its 100%-owned La Cigarra Project.   La Cigarra is located in the prolific “Parral” district in Chihuahua State, Mexico. Silver has been mined successfully in Parral for more than 400years.  In another coup for Kootenay, the company acquired Coeur Mining’s (CDE, NYSE) 2.5% NSR on future production at La Cigarra (through subsidiary Coeur Capital) in exchange for $500,000 U.S. cash and 9.6 million KTN shares.

Connect with Kootenay Silver (TSXV:KTN) to receive an Investor Presentation.

MARKETS

Markets
TSX19222.74-35.58
TSXV644.91-7.45
DOW30946.99-491.27
S&P 5003821.55-78.56
NASD11181.54-343.01
ASX6706.00+177.60

COMMODITIES

Commodities
Gold1819.88-3.55
Silver20.82-0.33
Copper3.76-0.01
Palladium1880.49+12.49
Platinum912.73+5.73
Oil111.62+2.05
Heating Oil4.10-0.01
Natural Gas6.51+0.01

DOWNLOAD FREE REPORTS

×