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Oreninc Index: April 1, 2019

ORENINC INDEX up as brokered deals return 

 

ORENINC INDEX - Monday, April 1st 2019

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Last week index score: 44.28

This week: 51.17

Silver Spruce Resources (TSXV:SSE) identified additional areas for further field investigation as potential drill targets for its upcoming program at the Pino de Plata project in Chihuahua, Mexico.

The Oreninc Index increased in the week ending March 27th, 2019 to 51.17 from 44.28 as brokered deals returned, although dollars announced fell.

Gold took a body hit to plunge below the US$1,300/oz level towards the end of the week as the first quarter of 2019 ended and the US dollar gained in strength as fourth quarter 2018 US GDP came in up 2.2%, in line with the consensus forecast. A drop in US jobless claims also helped dollar strength.

The UK is no closer to knowing how or if it will leave the European Union (EU) after UK Prime Minister Teresa May failed again to get her negotiated deal through Parliament. With Parliament deadlocked, a general election seems increasingly likely.

On to the money: total fund raises announced decreased to C$52.1 million, a three-week low, that included two brokered financings for C$25.0 million, a two-week high and one bought-deal financing for C$20.0 million, also a two-week high. The average offer size increased to C$1.7 million, a two-week high, whilst the number of financings decreased to 31, a two-week low.

Gold’s rise came to a sudden and painful end as it closed down at US$1,292/oz from US$1,313/oz a week ago. The yellow metal is up 0.77% so far this year. The US dollar index saw strength as it closed up at 97.28 from 96.65 last week. The van Eck managed GDXJ pulled back as it closed down at US$31.73 from US$32.73 a week ago. The index is up 5.00% so far in 2019. The US Global Go Gold ETF also pulled back as it closed down at US$12.88 from US$13.31 last week. It is up 12.88% so far in 2019. The HUI Arca Gold BUGS Index closed down at 169.95 from 173.14 last week. The SPDR GLD ETF continued to accrue as its inventory closed up again at 784.26 tonnes from 781.03 tonnes a week ago.

In other commodities, silver spot closed down at US$15.12/oz from US$15.42/oz a week ago. Copper bounced back with a strong week as it closed up at US$2.93/lb from US$2.84/lb a week ago. Oil saw growth again as WTI closed up at US$60.14 a barrel from US$59.04 a barrel a week ago.

The Dow Jones Industrial Average bounced back as it closed up at 25,928 from 25,502 last week. Canada’s S&P/TSX Composite Index closed up at 16,102 from 16,089 the previous week. The S&P/TSX Venture Composite Index closed down at 626.89 from 637.82 last week.

Summary

·       Number of financings decreased to 31, a two-week low.

·       Two brokered financings were announced this week for C$25.0m, a two-week high.

·       One bought-deal financing was announced this week for C$20.0m, a two-week high.

·       Total dollars declined to C$52.1m, a three-week low.

·       Average offer increased to C$1.7m, a two-week high.

 

                                                          

Financing Highlights

Barkerville Gold Mines (TSXV:BGM) entered into an agreement with a syndicate of underwriters led by Haywood Securities to raise C$20.0 million on a bought deal private placement basis.

·       55.6 million shares @ C$0.36

·       The underwriters have a 15% overallotment option

·       The net proceeds will be used for exploration and development of the Cariboo gold project in British Columbia, Canada.

·       The deal is expected to close by April 23rd.

 

Tethyan Resources (TSXV:TETH) entered into an agreement with TD Securities as bookrunner to raise on an underwritten private placement basis C$5.0 million.

·       6.3 million shares @ C$0.80.

·       The proceeds will be used to fund the planned advancement of the Rudnica copper-gold and Kizevak zinc-lead-silver projects in Serbia.

·       The deal is expected to close by April 17th.

 

Major Financing Openings

·       Barkerville Gold Mines (TSXV:BGM) opened a C$20.0 million offering underwritten by a syndicate led by Haywood Securities on a bought deal basis. The deal is expected to close on or about April 23rd.

·       Tethyan Resources (TSXV:TETH) opened a C$5.0 million offering underwritten by a syndicate led by TD Securities on a best efforts basis. The deal is expected to close on or about April 17th.

·       Sabina Gold & Silver (TSX:SBB) opened a C$4.9 million offering on a best efforts basis.

·       Wealth Minerals (TSXV:WML) opened a C$4.0 million offering on a best efforts basis.  Each unit includes half a warrant that expires in two years.

 

Major Financing Closings

·       Auryn Resources (TSXV:AUG) closed a C$5.26 million offering on a best efforts basis.

·       Golden Arrow Resources (TSXV:GRG) closed a C$4.74 million offering on a best efforts basis. Each unit included a warrant that expires in two years.

·       Core Gold (TSXV:CGLD) closed a C$4.03 million offering on a strategic deal basis.    

·       Atac Resources (TSXV:ATC) closed a C$3.68 million offering on a best efforts basis.

 

Company News

Silver Spruce Resources (TSXV:SSE) identified additional areas for further field investigation as potential drill targets for its upcoming program at the Pino de Plata project in Chihuahua, Mexico.

·       Reinterpretation of current and historical data from the project and ongoing field examination identified new areas to map and sample to the west of the El Terrero target southeast of the Sierpe I and Sierpe II vein target areas.

·       The large area of alteration appears to be associated with both the vein mineralization at La Perla and the historical Terrero workings. Sampling of the Terrero area yielded up to 557g/t Ag and anomalous Au and Pb.

Analysis

The company had not previously focused on these areas and as such they represent the possibility to find new areas of mineralization.

 

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