Thoughts - possible development scenarios for La Cigarra
It`s likely too early for Northair`s BoD to determine which direction to go. I think they will need to produce the initial 43-101 resource report and the initial PEA (possibly even the prefeasibily or even full feasibility) first before a firm direction for La Cigarra can be determined.
However, off the top head, here are some possible scenarios:
1) Northair could option 55 - 60% of La Cigarra to a company like Coeur in return for Coeur paying for full costs of the full feasibility study and full costs to bring the mine into production. This is the same type of deal Orko Silver had with Pan American Silver. However, earlier this year, Pan American dropped the deal (after spending millions on exploration) and decided to acquire Minefinders (producing company). Personally, I don`t like Orko`s deposit at all - way too much overburden (ridiculously huge strip ratio), not close enough to the surface, not the best scenario for bulk mining (IMO), with too narrow veins for my liking. La Cigarra`s deposit is completely different.
2) Northair could sell La Cigarra to a company like Coeur and give the proceeds to exiting Northair shareholders, while keeping Northair trading as a going concern corporation. For example, this can be accomplish by Coeur (only an example) acquiring La Cigarra for, say, $1.25 per Northair share in return for either cash or Coeur common shares (or a combination). Northair sharesholders are then able to pocket the $1.25 value per share (maybe pay taxes on dividend or capital gains), but then continue own their full allotment of shares in Northair, while Northair continues to trade with an asset portfolio of Sierra Rosario and El Reventon (and maybe purchase a 3rd asset).
3) Northair brings La Cigarra itself into production, through equity and debt financing. The bankable feasibility would be required first, under this scenario.
4) Northair excutes a full merger with another company - like Coeur or a smaller producing junior company. I don`t think this scenario works too well with a large company like Coeur, in terms up upside share price potential. For this scenario to work well, it is better for Northair to team up with a severely undervalued junior production (or near producer), be it with gold or silver.
With Coeur now in the picture, I think scenarios 1 or 2 are the most possible scenarios of the 4 scenarios discussed. Again, I think it is still too early to determine which direction the situation will take. Lots of infill drilling still remaining and then we still need to prepare the 43-101 resource report. Then, PEA, pre-feas, etc.