RE: Kootenay $50M, Northair $13M - Mkt Cap Also:
Tinka Resources, a similar type silver exploration company as Northair, announced an oversubscribed PP financing today. I think the original financing was announced on April 24th, but they announced it was overscribed today. Tinka is trading at $.87 per share with a market cap of $68 million (including $2.4M with closing of the PP).
Northair closed at $.145 today ($.13 yesterday), with today`s market cap being a pidly $13 million ($12 million yesterday).
Tinka`s properties are located in Peru. I use to feel comfortable about investing in Peru, but not anymore. The investment environment for foreign investors seems to have changed drastically over the past several years. In my own personal view, Peru has turned into a very risky place to invest. It`s not quite as bad (as yet) as Equador or Bolivia, but it has deteriorated substantially over the past several years, IMO. I`ve never owned any shares in Bear Creek Mining, but one just simply needs to ask any Bear Creek Mining investor how the Peru experience has been for them over the past few years (with over 500 million ounces of silver, yet the Bear Creek share price went from $12 to $2 due to actions taken by parties in the Peru, resulting in market perception of potential for loss of 1 or more of those deposits (or not being permitted for mine building)).
On the other hand, Northair is located in one of the most mining friendly countries in the world, and, specifically, one of the most mining friendly jurisdictions in Mexico. Yet, Tinka is able to issue an $.85 oversubscribed PP news release ($.87 current share price) and carry a $68 market cap while Northair is mightily struggling to even keep its head above the $13 million market cap level. If Tinka, Kootenay, Orka (recently sold for massive amounts of money) and a number of other top tier (similar stage) silver exploration companies are able to maintain or establish such reasonable share price / market cap values during this (very long) severe market correction period then Northair`s management needs to find a way to step up its overall shareholder performance. A $.13 share price close yesterday - $12 million market cap - is unacceptable, especially when top teir performing companies in the space are consistently maintaing a market cap range of $50 - 70 million (or greater - I think Orka sold in the $300 - 400 million range).
International Northair:
* market cap = $13,000,000
* 54,000,000 silver ounces (50.5M M&I and 3.5M Inferred) - 76 g/t grade M&I, 61 g/t grade Inferred
* 30 g/t cut-off silver grade
* in addition, there are some by-product gold, lead and zinc medal content
* bulk tonnage, open pit mining
* jurisdiction = Parral, Mexico
Tinka Resources:
* market cap = $68,000,000 (includes today`s $2.4M PP financing)
* 32,700,000 Inferred silver ounces @ 73 g/t grade inferred
* in addition, there area some zinc content
* 15 g/t cut-off silver grade
* bulk tonnage, open pit mining
* jurisdiction = Peru