Intl Northair Mines Ltd INNHF

RE:RE:La Cigarra - drill targets

[production05]

Hey LGreen,

Off the top of my head, here are a few quick reasons I think we should vote for deal:


1)  I am not necessarily happy with the offer price.  I would have liked to have seen something better.  I think La Cigarra is a company maker asset.  In addition, Northair has about $2.8 million in cash at the time.  I felt that management should have drill tested Ram Zone and Nogalera Zone - 2 high grade zones (Ram was drill ready and Nogalera was almost drill ready - pending arrival of the drill permits).  They could have punched fairly decent RC drill test holes by only spending less than a million dollars of the $2.8 million - RC (Reversed Circulation) drilling is quite a bit cheaper than Diamond drilling.   

I felt that positive results at Ram Zone and/or Nogalera would have given us a better share price in negotiating a better M&A deal (or continuing to go it alone), especially with market sentiment starting to change to the positive side in the percious metals space.

Given that management took a different path, I guess it is what it is.  This consolidated company route (with Kootenay) is a good path to take as well.  Staying as a separate company and moving La Cigarra forward ourselves (in this upcoming next phase of the silver bull market) would have eventually gotten our share price back to $1.00 (the previous high).  To make the Northair (previous high) price of $1.00 (after we convert over) the Kootenay price will need to get up to $2.86.  That is possible eventually also.  It will depend heavily on how successful Kootenay`s management is on growing the consolidated company. 


2)  Reduction of risks associated with a one asset company

Going from a one asset company to a multiple asset company is very important, for obvious reasons.  As such, a share price premium will be given to the consolidated company.  In addition, more institutions will be more willing to kick the tires.


3)  The (larger) consolidated company will be easier to finance

Same points as noted in number 2.  It has been difficult for small juniors to secure financing over the past several years, especially at reasonable prices.


4)  Management experience

It looks like the Kootenay management team has good experience with growing companies and advancing assets.  I think the CEO was involved at the early stages with Alamos Gold and I think another successful company as well, in addtional to building the Kootenay deposits.  It is impressive how they identified the potential of La Negra by simply walking the land and collecting samples.  

They seem to have the abilities to move La Cigarra forward.  

Northair`s management did a good job also - both previous managment (Fred and company) and current management (Angela and company).  It`s unfortunately that they couldn`t hold off the M&A until after drilling Ram and Nogalera, but they did a good job with identifying drill targets with soil and rock sampling, treching and airplane surveys.  They also did a good job with getting support from the locals (Ejidos etc.) and the successes with metallurgical tests.

Kootenay`s management can now step in and take the project to company maker levels.


5)  Leading silver junior company

The depressed precious metals sector over the past few years created opportunities for a silver consolidator.  Kootenay-Northair will be that company.  If management executes the plan well, Kootenay`s share price will eventually be substantially higher than today`s price. 


6)  New silver bull market

As mentioned, sentiment is changing in the percious metals space.  A larger (consolidated), leader in its space (junior silver company), will be better positioned to catch the bull market wave up.