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Oreninc Index Update: September 18, 2017

ORENINC INDEX falls though financings strong

 

ORENINC INDEX - Monday, September 18th, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

Last week index score: 76.50 (Updated)

This week: 25.86

NuLegacy Gold (TSXV: NUG) discovered another important gold zone on its Red Hill property in Nevada, USA.

 

The Oreninc Index fell heavily in the week ending September 15th, 2017 to 25.86 from a revised 76.50 the previous week.

Total fund raises announced fell to C$26.5 million, an eight-week low, which included no brokered financings and no bought-deal financings. The average offer size shrunk to C$1.1 million, an eight-week low, whilst the total number of financings announced decreased to 24, a three-week low.

The run of building metals prices in recent weeks ran out of steam and retrenched on profit-taking and on increased US dollar strength.

A relatively calm week for news, calm that is apart from continued sabre-rattling between North Korea and the USA, with North Korea launching another missile over Japan-

Gold was on the backfoot through the week closing at US$1,320/oz from US$1,346/oz last week. Gold is now up 15.0% since the start of the year. The van Eck managed GDXJ fell in line with the gold price is now up 11.8% so far in 2017 to close the week at US$35.28. The recently launched US Global Go Gold ETF also had a negative week to close at US$13.30 from US$13.74 last week. The SPDR GLD ETF held firm despite the pullback in gold and inventories closed down slightly at 838 tonnes from 840 tonnes the previous week.

In other commodities, having broken through the US$18/oz level last week sliver lost ground to close at US$17.59. Copper continued to decline and fell below the US$3/lb for the first time in about a month to close at US$2.94/lb. Oil reflected US dollar strength and put in another week of growth to close at US$49.89 from US$47.48 per barrel last week.

The Dow Jones Industrial Average also put in another record-breaking week to close at 21,797 from 21,987 last week. Canada’s S&P/TSX Composite Index also saw strong growth and closed up at 15,173 from 14,985 the previous week. The S&P/TSX Venture Composite Index also grew to close at 779.66 from 772.02 the previous week.

The Oreninc team is now in Colorado for the Precious Metals Summit in Beaver Creek, and in addition to getting updates from many companies in the precious metals space, we will be recording the next in the podcast series with Mercenary Geologist Micky Fulp.

Summary:

  • Number of financings decreased to 24, a three-week low.
  • No brokered financings were announced this week, a three-week low.
  • No bought-deal financings were announced this week, a three-week low.
  • Total dollars fell to C$26.5m, an eight-week low.
  • Average offer size sunk to C$1.1m, an eight-week low.

 

Major Financing Openings:

  • Coro Mining (TSX:COP) opened a C$7.29 million offering on a best efforts basis.
  • Monarques Gold (TSXV:MQR) opened a C$6.53 million offering on a best efforts basis.
  • Spanish Mountain Gold (TSXV:SPA) opened a C$2 million offering on a best efforts basis. Each unit includes a warrant that expires in two years.
  • Pure Energy Minerals (TSXV:PE) opened a C$1.5 million offering on a best efforts basis. Each unit includes half a warrant that expires in two years.

Major Financing Closings:

  • Aurion Resources (TSXV:AU) closed a C$15.9 million offering on a best efforts basis.
  • Monarques Gold (TSXV:MQR) closed a C$6.53 million offering on a best efforts basis.
  • Dolly Varden Silver (TSXV:DV) closed a C$5 million offering on a best efforts basis. 
  • Sable Resources (TSX:SAE.H) closed a C$4.26 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis.

 

Company news

NuLegacy Gold (TSXV: NUG) discovered another important gold zone on its Red Hill property in Nevada, USA.

  • Hole VIO17-01 in the VIO zone, some 4km east of the Iceberg gold deposits, returned 33.5m @ 0.65g/t Au & 5.5g/t Ag.
  • Gold appears to be epithermal-style mineralization
  • Proof of targeting concept

Analysis

The VIO results show an entirely different deposit type to that of NuLegacy’s Carlin-style gold deposits. Important epithermal gold deposits exist within the Northern Nevada Rift that crosses the Cortez trend through the company’s Red Hill property. Red Hill is positioned at the intersection of the Cortez-trend and the Northern Nevada Rift, two of Nevada’s richest gold trends. This VIO discovery proves the concept that significant gold mineralization can be found where the two structures intersect.

The VIO drilling was targeted via the completion of a 6-line km CSAMT survey complimented by 332 soil and rock chip samples. The soil geochemistry survey identified multiple areas with highly anomalous gold values that are proximal to a series of structures identified by the CSAMT and geologic mapping program.

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Top 10 Financings of August 2017

Oreninc’s Top 10 Financings of August 2017

 

North America’s leading junior mining finance data provider

Follow us on facebook and Twitter @Oreninc

 

September 11th, 2017 - August 2017 saw a significant pullback in the Canadian financial markets due to the summer vacation season with just 102 financings closing for C$196.2 million at an average of $2.0 million.

In comparison, June had 124 financings closing for $474.8 million at an average of $4.1 million and July had 110 financings closing for $493.0 at an average of $4.7 million.

This included five brokered financings for $31.7 million—some 16.1% of the total—at an average size of $6.3 million, including no bought deals.

August saw 49 gold deals close for $102.0 million at an average of $1.6 million, which included four brokered deals for $31.6 million representing some 52.0% of the total. The top ten gold deals accounted for some 79.4% of the total at $81.0 million.

The top ten deals by size in August totalling $113.1 million, some 57.6% of the total. Gold companies took five of the top ten spots, with lithium, PGMs, diamonds, tungsten and oil taking one spot each.

September looks set to be a better month as 124 deals were opened in August.

 

#1 Red Eagle Mining $30.0 million

Red Eagle Mining (TSX: R) closed a $30.0 million rights offering and issued 85.6 million units @ $0.35. Each unit consisted of one share and a warrant exercisable @ $0.50 for five years. The proceeds will be used to implement a change in mining method at its San Ramon gold mine in Antioquia, Colombia that requires the construction of a paste backfill plant and additional underground mine development. Major shareholders Liberty Metals & Mining Holdings, Vertex Value Fund and Orion Mine Finance exercised their rights.

#2 Fiore Exploration $17.0 million

Fiore Exploration (TSXV: F.V) closed a brokered private placement for $17,0 million and issued 55.8 million subscription receipts @ $0.305. Each subscription receipt will convert as part of Fiore’s business combination with GRP Minerals into one unit of Fiore Gold, with each unit consisting of one share and a warrant exercisable @ $0.45 for three years. The proceeds will be used for expansion of the Pan Mine leach pads in Nevada, USA, drilling at both Pan and Gold Rock, working capital and production expansion. The financing was led by GMP Securities and Eventus Capital as co-lead agents and joint bookrunners, and included Haywood Securities.

#3 PentaNova Energy $16.5 million

PentaNova Energy (TSXV: PNO) closed a $16.5 million private placement of 20.6 million subscription receipts @ $0.80. Each unit will consist of one share and a warrant exercisable @ $1.05 for five years. The proceeds were placed into escrow pending completion of the company's acquisition of Patagonia Oil.

  

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Oreninc Index Update: September 11, 2017

ORENINC INDEX falls though financings strong

 

ORENINC INDEX - Monday, September 11th, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Last week index score: 70.51

This week: 67.02

 

NuLegacy Gold (TSXV: NUG) reported assays from reverse circulation holes drilled in the North Iceberg and newly discovered Serena zone of its Red Hill property in Nevada, USA.

LiCo Energy Metals (TSXV: LIC) entered into a property purchase with Glencore.

Castle Silver Resources (TSXV: CSR) signed a memorandum of understanding with Granada Gold Mine for the consideration of the processing of mineralised material from the Granada mine.

 

The Oreninc Index fell in the week ending September 7th, 2017 to 67.02 from 70.51 the previous week although there was strong bought deal activity, as the Labor Day holiday distorted the index.

Total fund raises announced increased to C$151.3 million, a ten-week high, which included five brokered financings for C$47.2 million, a two-week low, and four bought-deal financings for C$40.0 million, also a two-week low. The average offer size grew to C$6.1 million, a 27-week high, whilst the total number of financings announced decreased to 25, a two-week low.

The growth in metals prices of late ran out of steam at the end of the week as investors took profits, suggesting that prices may have gotten ahead of themselves.

The news focuses this week was on natural disasters with Hurricane Irma slamming into Florida as I write and as Hurricane Katia hits Mexico, following hot on the heels of Hurricane Harvey that recently hit Houston, Texas, and preceding Hurricane Jose that so far is following a similar course as Irma. At least 90 have also been killed by an 8.1 magnitude earthquake of the century just off Mexico’s southern coast. Many see such things as a sign of things to come as global warming effects change on weather patterns and increases the ferocity, damage potential and frequency of hurricanes. Such events should have profound implications for the rebuilding of coastal communities and where and in what form development can occur, but will public policy be up to the task?

Gold continued its climb to strength although it saw some profit-taking as the week ended, closing at US$1,346/oz up from US$1,325 last week. Gold is now up 17.4% since the start of the year. The van Eck managed GDXJ was lifted by the gold price increase and is now up 17.2% so far in 2017 to close the week at US$36.96. The recently launched US Global Go Gold ETF also had a strong week to close at US$13.74 from US$13.48 last week. The SPDR GLD ETF saw increased to raise inventories to 840 tonnes before profit-taking saw it close at 834 tonnes compared to 831 tonnes the previous week.

In other commodities, having recently broken through the US$17/oz mark silver raced on through the US$18/oz level before retreating slightly to close at US$17.97. Having experienced steady growth in recent weeks the red metal saw a sharp sell off on Friday to close at US$3.02/lb from US$3.12/lb the previous week. Oil also saw a sharp sell off on Friday, although still slightly up on the week, closing at US$47.48 per barrel, from US$47.29 per barrel last week.

After starting the week on a downward trajectory, the Dow Jones Industrial Average closed down at 21,797 from 21,987 last week. Canada’s S&P/TSX Composite Index downward bent was straight as an arrow as it closed down at 14,985 from 15,191 the previous week. The S&P/TSX Venture Composite Index also fell to close at 772.02 from 778.45 the previous week.

The Oreninc team recorded the latest in its series of podcasts this week with Mercenary Geologist, Micky Fulp. The recording will be posted to Oreninc.com shortly.

 

Summary:

  • Number of financings fell to 25, a two-week low.
  • Five brokered financings were announced this week for C$47.2m, a two-week low.
  • Four bought-deal financings were announced this week for C$40.0m, a two-week low.
  • Total dollars increased to C$151.3m, a ten-week high.
  • Average offer size rose to C$6.1m, a 27-week high.

 

 Financial news highlights

Novo Resources (TSXV: NVO) undertakes non-brokered equity private placement with Kirkland Lake Gold.

  • Gross proceeds of C$56.0 million through the issuance of 14.0 million units @ C$4.0. Each unit consists of one share and one warrant exercisable @ C$6.0 for three years.
  • Kirkland Lakw retains an anti-dilution right and can appoint one director.
  • The net proceeds will be used to develop and explore Novo’s projects in the Pilbara region of Western Australia.

 

 Major Financing Openings:

  • Novo Resources (TSXV: NVO) opened a C$56 million offering on a strategic deal basis. Each unit includes a warrant that expires in 36 months. The deal is expected to close on or about September 15th.
  • Barkerville Gold Mines (TSXV: BGM) opened a C$28 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis. The deal is expected to close on or about September 28th.
  • Aurion Resources (TSXV: AU) opened a C$15.9 million offering on a best efforts basis. The deal is expected to close on or about September 13th.
  • SDX Energy (TSXV: SDX) opened a C$12.21 million offering on a best efforts basis.    

Major Financing Closings:

  • Novo Resources (TSXV: NVO) closed a C$ 56 million offering on a strategic deal basis. Each unit included a warrant that expires in 36 months.
  • SDX Energy (TSXV: SDX) closed a C$12.21 million offering on a best efforts basis.    
  • 88 Capital (TSXV: EEC) closed a C$5.25 million offering underwritten by a syndicate led by First Republic Capital on a best efforts basis. Each unit included half a warrant that expires in 36 months.
  • Benz Mining (TSXV: BZ) closed a C$2.5 million offering on a best efforts basis

 

Company news

NuLegacy Gold (TSXV: NUG) reported assays from reverse circulation holes drilled in the North Iceberg and newly discovered Serena zone of its Red Hill property in Nevada, USA.

  • A 100m step-out hole from the North Iceberg zone towards the Serena zone returned 21.3m @ 2.85g/t Au.
  • Follow-up holes in the Serena zone discovery were drilled to confirm the new zone.

Analysis

As the company’s understanding of the geology of the area it is encountering more higher-grade areas that are associated with Carlin-type gold deposits. Drilling at Serena, in addition to confirming the discovery, also suggests possible convergence with the North Iceberg deposit.

 

LiCo Energy Metals (TSXV: LIC) entered into a property purchase with Glencore.

  • To acquire mining rights patent #585 in Bucke Township, 6km east-northeast of Cobalt, Ontario, Canada.
  • The property consists of 16.2 hectares that sits along the west boundary of LiCo’s Teledyne Cobalt project and covers the southern extension of the former producing 15 Vein on the past-producing Agaunico mine.
  • In the early 1980s, 36 surface diamond drill holes totaling 3,323m were drilled that outlined two separate vein systems hosting cobalt and silver values.

Analysis

The property is adjacent to the company’s Teledyne cobalt property, which therefore increases the land available for exploration. The acquisition also gives the company access to the exploration data previously generated on the Glencore property that will assist the effort to discover and define new mineralisation. Should economic deposits be discovered, the agreement also outlines the potential for an offtake agreement with Glencore that would dramatically assist in its commercialisation.

 

Castle Silver Resources (TSXV: CSR) signed a memorandum of understanding with Granada Gold Mine for the consideration of the processing of mineralised material from the Granada mine.

  • Castle is undertaking a study to install a 600 tonne per day gravity flotation plant. 
  • Potential synergies exist for processing Granada material while also Castle’s objectives in the Cobalt camp.
  • Castle and Granada share common directors and qualified persons.

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Oreninc Interview Series with Mickey Fulp - Episode 12

September 8th, 2017

Our bi-weekly interview series with the Mercenary Geologist, Mickey Fulp.

Topics discussed:
- End of the summer, spike in the Oreninc Index
- Return of the bought deals
- Commentary on industrial metals prices, copper, iron ore, zinc, etc.; what goes up, must come down, right?
- Number of the week

We recorded the interview on September 8th, 2017 via Skype.

Participants:
- Mickey Fulp, Mercenary Geologist
- Paul Harris, Editor @ Oreninc
- Kai Hoffmann, CEO Oreninc

VISIT www.oreninc.com
VISIT www.goldgeologist.com

 

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Oreninc Index: September 5, 2017

ORENINC INDEX jumps as gold breaks US$1,300/oz

 

ORENINC INDEX - Tuesday, September 5th, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Last week index score: 24.70

This week: 70.51

 

Castle Silver Resources (TSXV: CSR) completed 22 drill holes for 2,405m from surface at its Castle silver-cobalt project in Gowganda, Ontario, Canada.

 

The Oreninc Index jumped in the week ending September 1st, 2017 to 70.51 from 24.70 the previous week with Osisko Mining announcing a financing in four parts.

Total fund raises announced more than doubled to C$115.1 million, a nine-week high, which included six brokered financings for C$91.0 million, a ten-week high, and four bought-deal financings for C$88.0 million, a 24-week high. The average offer size grew to C$3.7 million, an eight-week high, whilst the total number of financings announced increased to 31, a four-week high.

After testing the US$1,300 per ounce level several times this year, gold finally broke through this mark in style as the US jobs report came in lighter than expected with some 156,000 jobs added in the August Bureau of Labor Statistics report said on Friday, compares to expectations of around 180,000.

The week also saw Hurricane Harvey hit Houston,Texas and hang around for several days, unleashing a deluge estimated at some 27 trillion gallons of water that caused considerable flooding. The flooding resulted in the shutdown some 20% of US oil refining capacity and caused widespread damage that will make Harvey the hurricane that has caused most financial damage ever, expected to beat the US$160 billion of damage caused by Katrina in 2005.

Gold continued to strengthen and closed the week at US$1,325/oz up from slightly from US$1,297 last week, hitting levels last seen in October 2016, and it is now up 15.5% since the start of the year. The van Eck managed GDXJ was lifted by the gold price increase and is now up 14.9% so far in 2017 to close the week at US$36.26. The recently launched US Global Go Gold ETF also had a strong week to close at US$13.48 from US$12.65 last week. Breaking US$1,300/oz brought new interest to the gold space, which helped the inventory of the SPDR GLD ETF see strong growth to close the week at 831 tonnes from 805 tonnes the previous week.

In other commodities, silver broke clear of the US$17/oz mark and closed at US$17.73 up from US$17.07/oz last week. The copper price continued its recent growth spurt and closed up at US$3.12/lb from US$3.05/lb the previous week. Oil receded for most of the week hitting a low of US$45.96 per barrel before recovering some lost ground at the end of the week to close down at US$47.29 per barrel from US$47.87 last week.

The stock markets also saw growth this week with the Dow Jones Industrial Average increasing to 21,987 from 21,813 last week, whilst Canada’s S&P/TSX Composite Index grew to 15,191 from 15,055 the previous week. The S&P/TSX Venture Composite Index also increased to close at 778.45 from 769.47 the previous week.

 

Summary:

  • Number of financings increased to 31, a four-week high.
  • Six brokered financings were announced this week for C$91.0m, a ten-week high.
  • Four bought-deal financings were announced this week for C$88.0m, a 24-week high.
  • Total dollars doubled to C$115.1m, a nine-week high.
  • Average offer size also grew to C$3.7m, an eight-week high.

 

 

Financial news highlights

Osisko Mining (TSX: OSK) announced a bought deal private placement of C$80 million

  • Two-tranche bought deal of 7.4 million flow-through shares for aggregate gross proceeds of C$50.0 million, amended to include an additional 7.1 million shares @ C$4.20 for additional gross proceeds of C$30.0 million.
  • Underwritten by Canaccord Genuity that has the option to increase the offering size by up to an additional 1.1 million common shares.
  • The proceeds will be used for an expanded infill drilling program at its Windfall Lake gold project in Urban Township, Abitibi, Québec, Canada. Osisko plans to add 400,000m of drilling to the current drill program, for a global total of 800,000m.

 

Major Financing Openings:

  • Osisko Mining (TSX: OSK) opened a C$40.01 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis at C$6.93 per share. The deal is expected to close on or about October 5th.
  • Osisko Mining (TSX: OSK) opened a C$30 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis at C$4.20 per share. The deal is expected to close on or about October 5th.
  • Osisko Mining (TSX: OSK) opened a C$10 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis at C$6.14 per share.
  • Osisko Metals (TSXV: OM) opened a C$8 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis at C$1.90per share. The deal is expected to close on or about September 20th.

Major Financing Closings:

  • Colorado Resources (TSXV: CXO) closed a C$7.24 million offering underwritten by a syndicate led by PearTree Securities on a best efforts basis. Each unit included half a warrant that expires in 30 months.
  • Hannan Metals (TSXV: HAN) closed a C$3.33 million offering on a best efforts basis. Each unit included half a warrant that expires in 24 months.  
  • Umbral Energy (TSXV: UMB) closed a C$2.62 million offering on a best efforts basis. Each unit included a warrant that expires in 24 months.  
  • SRG Graphite (TSXV: SRG) closed a C$2.1 million offering on a strategic deal basis.

 

Company news

Castle Silver Resources (TSXV: CSR) completed 22 drill holes for 2,405m from surface at its Castle silver-cobalt project in Gowganda, Ontario, Canada.

  • Phase 1 drilling from surface was designed to gain a greater understanding of structures carrying potential cobalt mineralization in underground portions of the Castle mine and at shallow levels within 200m of the main adit.
  • Assay results returned an average of 3.7g/t Au in five chip samples from the first level of the Castle mine in addition to the high-grade cobalt, nickel and silver.
  • A Niton Portable XRF analysis of vein structures throughout the first level of the mine, allowing the company to target locations for additional bulk sampling.

Analysis

With assays from drilling pending, the company is building the geological picture of the cobalt potential at Castle. The soon to be initiated bulk sampling program will allow the company to produce cobalt sample products from Castle material through the company’s proprietary Re-2OX process and take another step towards evaluating the project’s potential.

 

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