On the heels of Monday\’s M&A in the gold space, Kootenay Silver (TSXV:KTN) and Northair Silver (TSXV:INM) said Wednesday that they\’ve executed a binding letter agreement under which Kootenay will acquire all of Northair\’s issued and outstanding common shares.
According to the companies, the combined entity will be “a leading Mexican silver exploration and development company and consolidator” whose assets will include Kootenay\’s Promontorio and La Negra projects, along with Northair\’s La Cigarra project. Notably, Promontorio has a NI 43-101 measured and indicated pit-constrained resource of 92 million silver equivalent ounces, plus a further 24.3 million silver equivalent ounces in the inferred category; meanwhile, La Cigarra has a NI 43-101 pit-constrained measured and indicated resource of 51.5 million silver equivalent ounces, in addition to an inferred 11.5 million silver equivalent ounces.
Aside from those strong projects, the new company will also “have exposure to a continuum of grass-roots pipeline exploration projects, royalty interests and joint ventures, plus a strong balance sheet.”
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Speaking positively about the deal, James McDonald, president and CEO of Kootenay, commented, “