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Oreninc Index: March 18, 2019

 

ORENINC INDEX up as brokered deals rebound

 

ORENINC INDEX - Monday, March 18th 2019

North America’s leading junior mining finance data provider

 

ORENINC PDAC VIDEOS

Presentation from the Capital Markets Program:

State of Mineral Finance – Kai Hoffmann

http://oreninc.com/videos/entry/kai-hoffmann-s-presentation

Discussing the mood at PDAC with Brent Cook

http://oreninc.com/videos/entry/pdac-2018-with-brent-cook

Episode 34 of our podcast series with Mickey Fulp

http://oreninc.com/videos/entry/interview-with-mickey-fulp-pdac-2019

PDAC Podcast Special with David Erfle & Trevor Hall

http://oreninc.com/orenthink/entry/oreninc-podcast-special-pdac-2019-feat-david-erfle-and-trevor-hall

“At the bar with Brent Cook & Mickey Fulp”

hosted by Kelly Earle, Special Guest Kai Hoffmann

http://oreninc.com/orenthink/entry/at-the-bar-with-brent-cook-mickey-fulp-hosted-by-kelly-earle-special-guest 

 

Last week index score: 31.10

This week: 59.23

The Oreninc Index increased in the week ending March 15th, 2019 to 59.23 from 31.10 as the number of brokered deals rebounded.

Gold volatility continues with wide swings up and down almost on a daily basis ahead of another US Federal Resource Open Market Committee meeting in the week to come. The Fed is expected to continue its dovish stance towards future interest rate increases.

Despite weeks of conciliatory noise out of Washington and Beijing, a summit between President’s Donald Trump and Xi Jinping to resolve a tariff trade dispute between the two nations has been pushed back. It will no longer take place at the end of March as more negotiations are needed.

More negotiations are need in the UK as well in a dramatic week for UK politics as the government struggles to deliver on a viable strategy for leaving the European Union (EU). The government lost another vote to get the deal it negotiated with the EU adopted and parliamentarians then voted against the nation dropping out without a deal and then voting to push back the drop-dead date to provide more time for the nation to decide what it wants to do.

Oil got a shot in the arm as a widespread blackout in Venezuela that lasted several days resulted in a dramatic reduction in oil production by state company PDVSA.

The Oreninc website now has videos recorded at PDAC 2019 uploaded including Oreninc’s Kai Hoffmann discusses the “State of Mineral Financing” and an interview with Brent Cook of Exploration Insights and many more.

On to the money: total fund raises announced fell to C$49.0 million, a four-week low, that included no brokered financings and no bought-deal financings. The average offer size shrank again to C$1.9 million, a four-week low, whilst the number of financings increased to 26, a two-week high.

Gold’s chart looked like a bouncing ball this past week with an indecisive spot price unable to make up its mind what side of US$1,300/oz it wanted to be. In the end it closed up at US$1,302 from US$1,298 a week ago after hitting a high of US$1,309 and a low of US$1,293. The yellow metal is up 1.55 so far this year. The US dollar index closed down at 96.59 from 97.30 last week. The van Eck managed GDXJ closed up a smidgen at US$32.33 from US$32.30 a week ago. The index is up 6.98% so far in 2019. The US Global Go Gold ETF also closed up at US$12.96 from US$12.78 last week. It is up 15.58% so far in 2019. The HUI Arca Gold BUGS Index closed down a touch at 169.38 from 170.00 last week. The SPDR GLD ETF stopped haemorrhaging inventory to as it closed up at 771.04 tonnes from 766.79 tonnes a week ago.

In other commodities, silver spot closed down at US$15.29/oz from US$15.34/oz a week ago. Copper closed up a cent at US$2.90/lb from US$2.89/lb a week ago. Oil saw growth again as WTI closed up at US$58.52 a barrel from US$56.07 a barrel a week ago.

The Dow Jones Industrial Average returned to growth as it closed up at 25,848 from 25,450 last week. Canada’s S&P/TSX Composite Index also closed up at 16,140 from 15,996 the previous week. The S&P/TSX Venture Composite Index also closed up at 627.77 from 618.08 last week.

Summary

·       Number of financings increased to 29, a four-week high.

·       Four brokered financings were announced this week for C$54.5M, a three-week high.

·       Three bought-deal financings were announced this week for C$49.5M, a three-week high.

·       Total dollars increased to C$87.6M, a three-week high.

·       Average offer up to C$3.0M, a three-week high.

 

                                                          

Financing Highlights

Victoria Gold (TSXV:VIT) opened a bought deal financing with a syndicate led by BMO Capital Markets for gross proceeds of at least C$30 million.

·       Combination of shares @ C$0.44 with minimum gross proceeds of C$30.0 million, and flow-through shares @ C$0.53 for up to C$15.0 million

·       The net proceeds will be used for construction and operations of the Eagle Gold Mine in Yukon, Canada

 

Major Financing Openings

·       Victoria Gold (TSXV:VIT) opened a C$45.01 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.

·       Goldsource Mines (TSXV:GXS) opened a C$5.0 million offering underwritten by a syndicate led by PI Financial on a best efforts basis that was subsequently increased to C$6.5 million. Each unit includes half a warrant that expires in two years.

·       Maritime Resources (TSXV:MAE) opened a C$5.0 million offering on a best efforts basis.

·       NRG Metals (TSXV:NGZ) opened a C$5.0 million offering on a best efforts basis. Each unit includes a warrant that expires in three years.

 

Major Financing Closings

·       Kootenay Silver (TSXV:KTN) closed a C$7.04 million offering on a best efforts basis. Each unit included a warrant that expires in five years.

·       Rio2 (TSXV:RIO) closed a C$7.0 million offering on a best efforts basis. Each unit included a warrant that expires in two years.

·       Mako Mining (TSXV:MKO) closed a C$4.5 million offering on a best efforts basis.

·       Velocity Minerals (TSXV:VLC.H) closed a C$3.91 million offering on a strategic deal basis.

 

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