I
first wrote about Soltoro Ltd. (TSXV: SOL) in March of 2013.
Silver was on a decline from $49 and change to just over $18. You couldn’t give
silver away. Or silver companies. Silver is on the way back up and the silver
companies have started to respond. Soltoro was $.08 at the end of December and
now sits at $.18. It’s still one of the cheapest ways to buy silver I know of.
At
their 100% company owned El Rayo project, Soltoro has a 43-101 resource of 77
million ounces of silver. That’s about 1.1 ounces of silver per share in an
M&I category or about $.15 an ounce for silver in the ground. Soltoro has
completed an additional 19,000 meters of drilling since the 2012 resource. They
are working on an updated resource.
Soltoro
has joint ventures with two other juniors. The company owns 15% or 7 million shares
in Argentum Silver (TSXV: ASL), which released a
new 43-101 in January of this year. The Inferred resource measures 3.6 million
ounces of silver and just over 5000 ounces of gold. The market yawned. ASL is
sitting at $.03 with a $1.2 million dollar market cap and a negative net worth.
If the company fades away, SOL will get what they call the Coyote Silver
project back. I’m not much more of a fan of ASL than is the market.
But
Soltoro does have a JV with a far better run and financed company than
Argentum. The La Tortuga copper/gold project is included in a Joint Venture
with Gold Reserve Inc. (TSXV: GRZ). Gold Reserve has
a $3.65 million dollar commitment on the project in three years. GRZ plans on
drilling between 7,000 and 12,000 meters this year on the 49 square km
prospect. Gold Reserve has a lot of money in the bank and needs a major home
run project.
Soltoro
had made a major commitment to projects in the Jalisco State in central Mexico
since the company was formed in 2005. Andrew Thompson has picked up a total of
12 projects in the state. He has an additional 7 projects he is seeking Joint
Venture partners with.
You
can learn a lot about any company by knowing who else has invested in them. A
major Mexican billionaire controls over 14% of the stock. Directors and
management control over 7% and Coeur D’Alene Mines owns about 7%. Coeur
participated in a Private Placement in Soltoro during July of 2011 for 4.5
million shares at $1 a share with silver at about $36 an ounce.
Mexico
is the largest silver producing country in the world. It has a long and rich
history of mining. Company President and CEO Andrew Thompson has created what
may well turn out to be the next silver powerhouse in Mexico. With over $1
million in the bank and a new 43-101 coming out soon, the company is well
positioned to go much higher.
Silver
in the ground at $.15 is absurdly cheap. Ten years ago, the market valued
silver in the ground at $1. It will happen again.
I
own shares in Soltoro, I participated in their latest PP so I am biased. They
are an advertiser. Please do your own due diligence.
http://www.321gold.com/editorials/moriarty/moriarty031014.html
Soltoro Ltd.
SOL-V $.18 (Mar 07, 2014)
SLTOF-OTCBB 69.2 million shares
Soltoro Ltd website
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