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Oreninc Index: March 4, 2019

 

ORENINC INDEX falls as deals fall away

ORENINC INDEX - Monday, March 4th 2019

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ORENINC is attending the PDAC March 3-6 in Toronto, Canada, opening the Capital Markets Program on

Monday, March 4th at 9am.

 

 

Last week index score: 68.69 (updated)

This week: 26.17

 

Avrupa Minerals (TSXV:AVU) closed the final tranche of its private placement of C$100,000 comprised of 2 million units.

 

The Oreninc Index fell in the week ending March 1st, 2019 to 26.17 from an updated 68.69 as financings as deals fall away.

Gold took a big dump on Friday, plunging to a five-month low and breaking back under the US$1,300/oz level for the first time in weeks as technical selling pressure, a higher US dollar index and US stock market rally beat down on the yellow metal. This follows gold hitting a 10-month high of over $1,340 last week. Was this a pre-PDAC curse?

This past week saw the BMO Metals and Mining conference in Florida, USA, one of the most important mining finance events on the calendar, and immediately before which Barrick Gold announced its hostile takeover bid for Newmont Mining. This weekend saw the exploration sector descends on Toronto, Canada en masse for the Prospectors and Developers Association Conference (PDAC).

Sounds of war are getting louder around the disputed Kasmir region between nuclear powers Pakistan and India after India launched an air-strike on what it says was a terrorist training camp in Pakistan. Pakistan shot down at least one Indian jet fighter and is holding its pilot prisoner.

President Trump met with his North Korean counterpart and nuclear aspiring Kim Jong-un in Vietnam, but the summit ended abruptly when Kim demanded that all economic sanctions against his country be dropped in exchange for partial dismantling of its nuclear program.

Whilst President Trump was in Vietnam, has former lawyer of ten years, Michael Cohen appeared before Congress to give testimony against the President during which he said the president knew in advance about key events under investigation in the Russia inquiry and of committing criminal conspiracy in the covering up of an extramarital affair.

The only certainty around the UK’s potential departure from the European Europe at the end of March is ongoing uncertainty. British Prime Minister Theresa May said she might try to delay the March 29 exit date. The leader of the opposition Labour Party has said he would endorse a second referendum on leaving if parliament cannot agree a deal. The UK pound sterling continues to strengthen as the odds of a no-deal exit from the EU diminish.

Crude oil also saw volatility as it fell from three-month highs after President Trump said crude prices are getting too high.

On to the money: total fund raises announced fell to C$52.3 million, a three-week low, that included no brokered financings and one bought-deal financing for C$10.5 million, a two-week low. The average offer size halved to C$2.6 million, a three-week low, whilst the number of financings fell to 20, a four-week low.

Gold closed the week heavily down at US$1,293/oz from US$1,329/oz a week ago. The yellow metal is up 0.85% this year. The US dollar index lost a smidge as it closed down at 96.45 from 96.50 last week. The van Eck managed GDXJ fell to close down at US$31.44 from US$33.86 a week ago. The index is up 4.04% so far in 2019. The US Global Go Gold ETF also closed down at US$12.53 from US$13.10 last week. It is up 9.90% so far in 2019. The HUI Arca Gold BUGS Index also closed down at 164.66 from 174.43 last week. The SPDR GLD ETF continued to see inventory sell off as it closed down at 784.22 tonnes from 789.51 tonnes a week ago.

In other commodities, silver sold off to close down at US$15.20/oz from US$15.92/oz a week ago. Copper lost a cent to close down at US$2.93/lb from US$2.94/lb a week ago. Oil lost a couple of dollars as WTI closed down at US$55.80 a barrel from US$57.26 a barrel a week ago.

The Dow Jones Industrial Average was largely unchanged as it closed down at 26,026 from 26,031 last week. Canada’s S&P/TSX Composite Index also continued to grow as it closed up at 16,068 from 16,013 the previous week. The S&P/TSX Venture Composite Index closed up at 625.16 from 623.27 last week.

 

Summary

·       Number of financings decreased to 20, a four-week low.

·       No brokered financings were announced this week, a three-week low.

·       One bought-deal financing was announced this week C$10.5m, a two-week low.

·       Total dollars shrunk to C$52.3m, a three-week low.

·       Average offer size down to C$2.6m, a three-week low.

 

                                                          

Financing Highlights

Victoria Gold (TSX:VIT) intends to complete a non-brokered flow-through financing for gross proceeds, up to C$15 million.

·       The company needs C$25 million to complete construction of its Eagle mine in Yukon, Canada.

·       It has 40 million warrants @C$0.40 expiring on May 10th that if exercised, would generate C$16 million.

·       The Eagle project is 75% complete with first gold pour scheduled for September.

Major Financing Openings

·       Victoria Gold (TSXV:VIT) opened a C$15 million offering on a best efforts basis.

·       Standard Lithium (TSXV:SLL) opened a C$10.5 million offering on a bought deal basis. Each unit includes half a warrant that expires in three years.

·       Minera Alamos (TSXV:MAI) opened a C$5 million offering on a best efforts basis. The deal is expected to close on or about March 1st.

·       Mako Mining (TSXV:MKO) opened a C$4.5 million offering on a best efforts basis. The deal is expected to close on or about March 4th.

 

Major Financing Closings

·       Touchstone Exploration (TSXV:TAB.U) closed a C$6.5 million offering on a best efforts basis.

·       Northern Vertex Mining (TSXV:NEE) closed a C$3.31 million offering on a best efforts basis. Each unit included a warrant that expires in two years.

·       Outcrop Gold (TSXV:OCG) closed a C$2.72 million offering on a best efforts basis. Each unit included a warrant that expires in five years.

·       Erdene Resource Development (TSX:ERD) closed a C$2.53 million offering on a best efforts basis.

 

Company News

Avrupa Minerals (TSXV:AVU) closed the final tranche of its private placement of C$100,000 comprised of 2 million units.

·       A total of $832,000 of the private placement was closed.

·       Each unit is comprised of one share and a warrant exercisable @ $0.10 for three years.

·       The funds will be spent on the exploration program in progress at the Alvalade project in the Iberian Pyrite Belt of southern Portugal where Avrupa just completed a drilling program.

 

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