Kingsmen plans drilling at Las Coloradas, Almoloya

The most recent news (February 17, 2026) outlines Kingsmen's 2026 exploration strategy for its Las Coloradas and Almoloya projects in Chihuahua, Mexico. This follows the closing of an upsized bought deal private placement (announced January 26, closed February 11) that raised C$13 million. The company plans aggressive step-out and deep drilling at Las Coloradas to test high-grade silver-gold systems that remain open in all directions. At Almoloya, the focus is on gold-rich structures identified through recent surface and underground sampling. Management characterizes 2026 as a "transformative year" with a fully funded treasury.

The impact of the recent news is mixed. From a balance sheet perspective, the C$13M raise is a Material - Positive event, providing the company with a long-term runway and removing immediate "going concern" risks often associated with junior explorers. However, the capital market's reaction is Material - Negative. The financing was executed at C$2.25 per unit, yet the stock has plummeted to C$1.61, meaning the participants in the "bought deal" are already facing a 28% loss.

Furthermore, the dilution is significant. In the last six months, the company has increased its share count from roughly 25 million to over 34 million (a ~36% increase), not including the millions of new warrants issued at C$3.00 and C$1.90. The "fully funded" status is a prerequisite for success, but the cost of capital has been extremely high for existing shareholders.

Kingsmen is exploring a consolidated 8.5 sq km district in the Parral Mining District of Mexico. - Flagship Project: Las Coloradas Silver Project. - History: The property includes the past-producing Las Coloradas mine (ASARCO, 1944-1952). - Thesis: Kingsmen is applying modern geophysics (3D IP) and drilling deeper than historic miners who were limited by the water table. Recent drilling has confirmed high-grade silver, lead, and zinc mineralization extending below old workings.