This is my next up and coming Silver Junior. $0.43 a share
Xtierra (TSX.V:XAG) has to rank among the TSX Venture’s best kept secrets. With the advanced Bilboa silver-zinc-lead project in Zacatecas, Mexico in feasibility with a 140 million ounce silver equivalent resource, and trading at a market cap of $14 million, the disparity between the reality and the should-be makes this a nearly too-good-to-be-true story. But while developing the understanding of the project and the company for this piece, the reasons for the low price become clear. (This is all of course my own speculation.)
The company is owned 60% by Minco PLC, and AIM-listed company in based in London, and a further 18.1% is owned by Pacific Road Resource Funds. Pacific Roads has an option to provide construction financing up to $32 million dollars, and I assume Minco would do the rest, since the budget is anticipated at a paltry $50 million. If you were going to finance a mine, would you rather do it at $0.20 a share or $1?
The president of the company, Terrence McKillen, only controls 1.25 million shares, or 1.65% of Xtierra, but he is also CEO of Minco and owns 7.5 million shares of Minco and a further 1.75 million options.
Sick new Drill results!