Many of you investors know that Apogee Silver currently has 115 mil ounces of high grade silver. Close to 1 billion pounds of lead and about 600million pounds of zinc in a country that for now is considered risky. Risky because it does not yet have a comprehensive mining law. This however is changing. Recently a mining draft that's been in the works for few years has been presented to the ministry of mining for approval. From the recent articles i've read suggests that the government of Bolivia is working hard to bring it out before the year end. This will bode well for Apogee in many fronts.
1) Apogee can become a take out candidate. The mining law if approved will allow foreign mining companies to stake land without extensive hassle. However why stake land when you have Apogee with established reserves and resources!! Ceour d'Lane a silver mining company also operating in Bolivia has Apogee as an strategic investment with 30 million shares of the company.
2) Apogee can go it alone and build the mine that will produce between 1 to 2 million ounce of silver per annum The mining law when approved will allow Apogee to get the necessary financing to continue and expand operations in Bolivia. 3)Investors sitting on the side line waiting for the mining law to come out will be able to participate without fear of owning shares of Apogee Silver. 4)The recently released Feasibility study puts a price on Apogee's Pulacayo property at over $70 million on POSilver of $29 This means if the company was to be sold It's share price would be worth around .16c to about .20c again on POSilver of $29.00 This means if POSilver goes beyond $29.00 it's NPV(Net Present Value)will also increase and therefore it's share price will also be higher.
Apogee Silver has huge institutional backing Sprott Asst Mgment Ceour d' Lane Forbes and Manhattan and few others are large holders of Apogee shares.
The risk here are POSilver staying below the $29.00 Apogee not getting the necessary financing and Bolivia not coming out with their mining law. Apogee from risk reward ratio is considered to be the cheapest stock on all metrics that could offer the biggest upside going forward.
It is my opinion that institutions who are waiting to lend money to miners including Apogee Silver could be waiting for the POSilver to move beyond the $30.00 and in Apogees case could also be waiting for the mining law to come out.