Kootenay Silver Making Big Moves in Junior Resource Sector With New Acquisition and Carried Interest to Silver Production

Silver Investing
TSXV:KTN

A recent article by equities.com highlighted Kootenay Silver (TSXV:KTN) and their acquisition of Northair and the La Cigarra silver project in Chihuahua, Mexico.

A recent article by equities.com highlighted Kootenay Silver (TSXV:KTN) and their acquisition of Northair and the La Cigarra silver project in Chihuahua, Mexico.
As quoted in the article:

While many financially starved junior miners have been mired in a holding pattern faced with uncertain futures, 2016 has proved to be a very active and fruitful year so far for Canadian and Mexican based junior Kootenay Silver (KTN:CA).
Just last week Kootenay reported that it has finalized its amalgamation with Northair Silver Inc., which was previously announced on February 8, 2016. The key acquisition includes Northair’s promising La Cigarra silver project in Chihuahua, Mexico, which currently boasts a 51 million ounce NI 43-101 silver resource.
The acquisition of Northair and La Cigarra immediately positions Kootenay as a leading consolidator of silver assets in Mexico and a company that appears ready to assume a dominant role in the sector. Combined with its Promontorio Mineral Belt assets, Kootenay now boasts a measured and indicated NI 43-101 silver asset base of over 140 million ounces of silver equivalent resources – and counting.
In the imminent future, Kootenay expects to boost its total resource base to in excess of 200 million silver equivalent ounces through the ongoing development of La Cigarra and an upcoming maiden resource calculation planned for its Promontorio La Negra silver discovery.
Adding to the excitement is Kootenay’s recently signed option agreement with Pan American Silver Corp (TSX: PAA). The option is on Kootenay’s premier La Negra silver discovery and its Promontorio Mineral Belt. The milestone agreement with Pan American includes $16 million in work and cash payments, a $3.5 million equity investment and a carried interest on La Negra to commercial silver production.
The Option with Pan American will provide a major influx of capital now and into the future and a pathway to commercial silver production
The new option serves as a catalyst and a strong complement to Kootenay’scurrent acquisition program in Mexico. At the same time,it provides a significant cash infusion to Kootenay’s treasury and a pathway to commercial silver production. The deal not onlyfurthersolidifies the Company’s rising status in Mexico’s silver sector, it aligns Kootenay with a world leading mining company and operator of seven silver mines in Mexico, Argentina, Peru and Bolivia.
Not surprisingly, Kootenay’s recent moves have not been lost on the investment community. Since first announcing its consolidation plan on February 8, 2016 Kootenay’s stock has risen steadily on heavy volume from an intra day low of $0.24 to a recent high of $0.42, representing a 100% price increase for the year.
For Kootenay, the current shift towards consolidation in the junior sector is proving to be a very timely opportunity for the Company and one that has created a solid platform for further acquisitions and multiple new opportunities for growth.
It will be very interesting to see if Kootenay Silver (TSX: KTN) can continue to build off its current momentum as it pursues further strategic acquisitions in the coming weeks and months to follow. One thing that is for certain, with a strong cash base with over $4.5 million in its treasury, along with a large established silver asset base and a carried interest to silver production, the Company stands to be in an enviable position when the resource market completes its predicted turnaround.

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