I first wrote about Soltoro Ltd (SOL-V) 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 (ASL-V), 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. (GRZ-V). 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.