Kootenay Silver Inc. and Northair Announce Transaction to Create Leading Mexican Silver Consolidator
On January 13, 2016, Kootenay Silver Inc. and Northair announced the execution of a Binding Letter Agreement (the "Binding Letter Agreement") pursuant to which Kootenay will acquire all of the issued and outstanding common shares of Northair. The combination of Kootenay and Northair will create a leading Mexican silver exploration and development company and consolidator with a portfolio of assets headlined by Kootenay's Promontorio and La Negra projects and Northair's La Cigarra project, all of which are based in Mexico. In addition, the combined company will have exposure to a continuum of grass-roots pipeline exploration projects, royalty interests and joint ventures, plus a strong balance sheet providing the combined entity with a stable platform for future consolidation in the sector.
Northair is focused on advancing its flagship La Cigarra silver project located in the state of Chihuahua, Mexico, 26 kilometres from the historic silver mining city of Parral. The La Cigarra property boasts nearby power, good road access, gentle topography, established infrastructure and currently hosts a robust NI 43-101 Mineral Resource Estimate that contains appreciable amounts of silver, lead, zinc and gold.