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Oreninc Index Update May 8, 2017

 ORENINC INDEX plumbs new depths

 

ORENINC INDEX - Monday, May 8, 2017

North America’s leading junior mining finance data provider

 

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Last week index score: 60.47

This week: 46.28

Avrupa Minerals (TSXV: AVU) started drilling at its Slivovo project in Kosovo.

The Oreninc Index fell in the week ending May 4th, 2017 to 46.28 from 60.47 as gold and other commodities took a beating.

Total raises announced decreased to C$78.4 million, a four-week low, which included six brokered financings for a total of C$30.0 million, a two-week high within which there were two bought-deal financing for C$15.0 million. The average offer size decreased to C$3.1 million, a two-week low, whilst the total number of financings announced fell to 25, a 16-week low.

The gold price continued to be under pressure as the US dollar strengthened and the stock markets grew, with gold ending the week down at US$1,226 from $1,268 the week before. Just two weeks ago gold was threatening US$1,300 when it hit an April high of US$1,294 on the 18th.

The van Eck managed GDXJ continued to fall and is now in negative territory down 4.06% so far in 2017. Despite the plummet in the gold price, the inventory of the SPDR GLD ETF held ground falling a tad to close at 853.08 tonnes from 853.4 tonnes the previous week.

Silver followed gold and fell considerably to close at US$16.27. Copper was down slightly on the week US$2.52. Oil fell about 10% on the week with WTI crude closing at $46 per barrel due to concerns about the continuing glut of worldwide supply. OPEC is due to meet May 25th and is expected to discuss cutting production quotas to boost prices.

The Dow Jones Industrial Average had another strong week and closed over 21,000 again at 21,007 whilst Canada’s S&P/TSX Composite Index consolidated and closed at 15,582 but the S&P/TSX Venture Composite Index slide and closed down on the week at 781.72.

We recorded the next the podcast series with Mercenary geologist Mickey Fulp during which we discussed the reasons behind the plunge in commodity prices this week. We also looked at Cobalt 27 and the US$200 million financing it announced.

Summary:

  • Number of financings increased to 25, a 16-week low.
  • Six brokered financings were announced for $30.0m, a two-week high.
  • Two bought-deal financings were announced for $15.0m, a three-week low.
  • Total dollars fell to $78.4m, a five-week low.
  • Average offer size decreased to $3.1m, a two-week low.

 

Financial news highlights

Marathon Gold (TSX:MOZ) announced a C$15 million bought deal financing with RBC Capital Markets that was subsequently increased to C$16.2 million, to raise funds to continue exploration and development of the Valentine Lake gold project in Newfoundland.

  • 30,000m of drilling is to be completed by the end of 2017
  • Valentine Lake is a gold system that is 20km long with just 10% of the trend looked at in any great detail.

Victoria Gold (TSXV:VIT) opened and completed a flow-through financing for C$10 million with a single subscriber.

  • The proceeds will be used to extend the 2017 exploration program at its Dublin Gulch property in Yukon that hosts its Eagle Gold deposit.
  • Eagle Gold has proven and probable reserves of 2.7moz Au contained in 123Mt @ 0.67 g/t Au.

Major Financing Openings:

  • Marathon Gold (TSX:MOZ) opened a C$15 million offering underwritten by a syndicate led by RBC Capital Markets on a bought deal basis. The deal is expected to close on or about May 25.
  • Victoria Gold (TSX-V:VIT) opened a C$10 million offering on a best efforts basis.    
  • Kennady Diamonds (TSX-V:KDI) opened a C$10 million offering on a best efforts basis. The deal is expected to close on or about May 15.
  • North Arrow Minerals (TSX-V:NAR) opened a C$5 million offering on a best efforts basis.  Each unit includes a warrant that expires in 36 months.

 

Major Financing Closings:

  • Bacanora Minerals (TSX-V:BCN) closed a C$16.9 million offering on a strategic deal basis.    
  • Novo Resources (TSX-V:NVO) closed a C$15 million offering underwritten by a syndicate led by Red Cloud Klondike Strike on a best efforts basis. Each unit included a warrant that expires in 24 months.
  • Victoria Gold (TSX-V:VIT) closed a C$10 million offering on a best efforts basis.    
  • Zinc One Resources (TSX-V:Z) closed a C$10 million offering on a best efforts basis.

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Company news

Avrupa Minerals (TSXV: AVU) began drilling at its Slivovo project in Kosovo.

  • 17 drill holes planned, totaling 5,700m
  •  At least six general target areas to be tested
  • Results-dependent program may have two follow-up phases
  • Aim to increase the Slivovo resource by at least 250,000 oz Au
  • C$8.3 million cost fully-funded by Byrnecut.

Conclusion

 

Avrupa’s drilling program aims to discover, delineate and define additional high-grade gold resources at its Slivovo deposit with a target of adding at least 250,000 oz Au to the resource from several targets proximal to the current deposit. The first phase of 5,700m in 17 holes will test geophysical anomalies and other targets. Through the exploration funding agreement, Avrupa is diluting its ownership position, which if it falls below 10%, will convert into a 2% NSR.

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