Kintavar Exploration Inc (TSX-V: KTR) is quite the interesting copper company located in southern Québec’s promising Grenville Region. Since our recent report on Kintavar the company has since announced several key milestones which investors should take note. Since our report, the company announced in February the results from a drilling program on the Mitchi property which resulted in grading of 0.18% copper and 1.65 g/t silver over 206.3 meters and 0.52% copper over 21.9 meters and 0.50% copper over 16.5 meters.
In April Kintavar Exploration completed an induced polarization (IP) geophysical survey on the Nasigon corridor located northeast in the Mitchi Property where stratiform copper mineralization has been found. This property has returned grades of 1.10% copper and 3.4 g/t of silver over 10 meters as announced in a news release in November 2017.
The company recently announced that the exploration team at KTR will begin all the work in preparation of the drilling program coming this summer. Important catalysts which investors look out for is the drilling program that is set to commence in June on the Sherlock corridor, and drilling on the company’s Nasigon corridor in July and August. These drill programs that are set to start as early as June serves as good data as what to expect as potential catalysts in the coming months for shareholders of Kintavar Exploration Inc.Risk Reduction through Private Placement Holders
Investors should also note an important investor in KTR’s recent private placement. On April 09th Kintavar announced that it received $2.5 Million dollars from the Casise de Dépot et Placement du Québec (CDPQ). This we believe to be quite important information shareholders and investors need to see as to the caliber of investors involved in the private placement. The CDPQ is investing $2.5 M for a total of 6.25M units at $0.40 cents and half warrants priced at $0.70 cents, a 59.09% increase from its current share price of $0.44 cents. The CDPQ is expected to participate as well in the second closing of the Kintavar.
Although there is a current upside of 59.09% to the warrant strike price, we believe The Caisse de Depot et Placement du Québec to be a key investor and tells us they see something that some investors might not. The CDPQ is a long-term institutional investor responsible with managing funds for Québec’s major public and parapublic pension and insurance plans and focus on the stimulation of Québec’s economic development who manage funds with net assets totaling over $270 Billion. This we believe to be an important investor in Kintavar Exploration and is an institution of significance. The remaining private placement is set to close in June 2018.
Catalyst to look for:
- Drilling on Sherlock corridor in June
- $15 M Private Placement closing mid June
- Drilling on the Nasigon corridor in July and August
In closing, investors and traders can expect to see several catalysts in play which should deliver sizeable returns from the announcement of the company’s drilling program on its Sherlock corridor in June, drilling on Nasigon in July and August and the closing of its $15M private placement. This private placement is notably more than half of its market cap which is currently valued at 27 Million dollars.
Full Disclosure: We own shares in Kintavar Exploration Inc.
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