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Live from the Precious Metals Summit - Ep 13

Episode 13 Oreninc MickeyFulp PaulHarris KaiHoffmann

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Oreninc Index Update: June 12, 2017

ORENINC INDEX jumps as gold gets political again

 

ORENINC INDEX - Monday, June 12, 2017

North America’s leading junior mining finance data provider

 

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Avrupa Minerals (TSXV: AVU) began exploration at the Alvito iron oxide copper-gold project in Portugal.

Castle Silver Resources (TSXV: CSR) began underground extraction at its Castle silver-cobalt mine in Ontario, Canada.

 

Last week index score: 37.34

This week: 81.01

 

The Oreninc Index increased in the week ending June 9th, 2017 to 81.01 from 37.34 as gold had a roller coaster week, with politics once again dominating the news agenda.

Total raises announced increased to C$180.2 million, a nine-week high, which included five brokered financings for a total of C$83.0 million, a twelve-week high within which there was one bought-deal financing for C$20.0 million, a three-week high. The average offer size doubled to C$4.2 million, an eleven-week low, whilst the total number of financings announced increased to 43, a nine-week high.

In the US, all eyes were on former Federal Bureau of Investigation (FBI) director James Comey who testified before a senate committee about conversations he had with US president Donald Trump prior to being fired. Meanwhile, in the UK, a general election returned Teresa May as prime minister, reaffirming her mandate to lead the UK in its exit from the European Union, although the Conservative Party that she leads lost its overall majority.

Gold began the week strongly hitting US$1,297 per ounce Tuesday and then trailing off for the rest of the week to close at US$1,271 per ounce on Friday, marginally up on the previous week.

The marginal improvement in gold was reflected in the van Eck managed GDXJ that improved slightly to now be up 3.93% so far in 2017. The inventory of the SPDR GLD ETF saw a marked gain to fall close at 867 tonnes, from 851 tonnes the previous week.

In other commodities, silver followed gold’s trajectory but with a harder fall to close down on the week at US$17.22. Copper had a mirror opposite to the two precious metals, starting weak and ending with a bang to close at US$2.64. Oil continued to weaken with WTI crude falling to US$45.83 per barrel.

The Dow Jones Industrial Average experienced another record week to close up at 21,271 whilst Canada’s S&P/TSX Composite Index had an up-and-down week before closing slightly higher at 15,473. The S&P/TSX Venture Composite Index on the other hand, fell below 800 to close at 791.20.

Summary:

  • Number of financings jumped to 43, a nine-week high.
  • Five brokered financings were announced for $83.0m, a 12-week high.
  • One bought-deal financing was announced for $20.0m, a three-week high.
  • Total dollars grew to $180.2m, a nine-week high.
  • Average offer size doubled to $4.2m, a 11-week high.

 

Financial news highlights

Alphamin Resources (TSXV: AFM) announced a US$38 million equity raise to further construction activities at the Bisie tin project.

  • Sprott Capital Partners and Tamesis Partners are leading a best efforts private placement of up to 81,454,000 units priced at C$0.35 to raise about C$28.5 million
  • Simultaneously, the company intends to complete a non-brokered private placement with 44.4% shareholder, Tremont Master Holdings for an additional 65,046,000 units on the same terms to raise about C$22.8 million.
  • The aggregate raisings would be about C$51.3 million.
  • The net proceeds will be applied towards the equity requirement for the continued development of Alphamin’s 82.5% owned Bisie tin project in Democratic Republic of Congo.
  •  Alphamin previously entered into non-binding term sheets in connection with US$80 million of project debt.

Major Financing Openings:

  • Alphamin Resources (TSXV:AFM) opened a C$28.51 million offering underwritten by a syndicate led by Sprott Capital Partners on a best efforts basis. Each unit includes half a warrant that expires in 36 months. The deal is expected to close on or about June 28th.
  • Alphamin Resources (TSXV:AFM) opened a C$22.77 million offering on a strategic deal basis. Each unit includes half a warrant that expires in 36 months. The deal is expected to close on or about June 28th.
  • Harte Gold (TSXV:HRT) opened a C$20 million offering underwritten by a syndicate led by Macquarie Capital Markets on a bought deal basis. The deal is expected to close on or about June 27th.
  • K92 Mining (TSXV:KNT) opened a C$16 million offering underwritten by a syndicate led by Clarus Securities on a best efforts basis. Each unit includes a warrant that expires in 12 months. The deal is expected to close on or about June 21th.

Major Financing Closings:

  • Lithium Americas (TSX:LAC) closed a C$54 million offering on a strategic deal basis.    
  • Delphi Energy (TSX:DEE) closed a C$35 million offering underwritten by a syndicate led by Raymond James on a best efforts basis.  
  • Falco Resources (TSXV:FPC) closed a C$28.75 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. Each unit included half a warrant that expires in 18 months.  
  • North American Nickel (TSXV:NAN) closed a C$10.88 million offering underwritten by a syndicate led by Paradigm Capital on a best efforts basis.  

 

Company news

Avrupa Minerals (TSXV: AVU) began exploration at the Alvito iron oxide copper-gold project in Portugal.

  • Project partner OZ Minerals provided funding for the first phase exploration that is designed to identify and refine IOCG drill targets. OZ Minerals owns two IOCG projects in South Australia:  the producing Prominent Hill mine and the Carrapateena project, currently in feasibility study.
  • Exploration is focused on an area containing a large copper-in-soil anomaly with a strike extent of 24km. The first phase will consist of geological mapping and prospecting, and large, license-wide, gravity and magnetic geophysical surveys. The results will be used to identify and rank drill targets for the second phase.

Conclusion

With exploration at Alvito beginning by IOCG expert partner Oz Minerals, Avrupa is taking the first steps to identifying its real potential.

 

Castle Silver Resources (TSXV: CSR) began underground extraction at its Castle silver-cobalt mine in Ontario, Canada.

  • A large sample was removed from a quartz-carbonate vein structure containing visible cobalt on the first mine level. Some mineralized material is being submitted for assaying while the remainder will be put through the company’s proprietaryRe-2OX hydrometallurgical process to produce high-purity cobalt powders for battery sector end buyer evaluation.
  • A series of bulk samples will be completed over the coming weeks in conjunction with the start of Phase I underground drilling.
  • Castle is also testing the Re-2OX process for recovery of cobalt and lithium from lithium-ion batteries. Re-2OX achieves recovery through stripping the casing, leaching the cathode of the batteries and forming a high-purity precipitate containing the valuable metals. Results from testwork by SGS Lakefield are due shortly.

Conclusion

Castle Silver has various testing programs underway to evaluate the potential of two different potential business streams: the mineral potential of its Castle mine and recycling potential of its Re-2OX process. Positive results would underscore the company’s potential to be a player in the cobalt space.

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