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Oreninc Index Update: October 30th 2017

ORENINC INDEX increases financings pick up

 

ORENINC INDEX - Monday, October 30th, 2017

North America’s leading junior mining finance data provider

 

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Last week index score: 41.8 (Updated)

This week: 63.56

 

NuLegacy Gold (TSXV:NUG) engaged Mine Development Associates to produce a NI 43-101 compliant resource for the Iceberg gold deposits in Nevada.

LiCo Energy Metals (TSXV:LIC) provided a update on its diamond drilling program at the Teledyne and Glencore Bucke cobalt properties in Ontario, Canada.

 

The Oreninc Index grew in the week ending October 27th, 2017 to 63.56 from last week’s updates 41.8 as a couple of strong financings were announced.

Gold’s weakness continued in the face of a strong US dollar and market watchers feeling 90% certain that interest rates will rise in December, a decision to be taken at the next Federal Reserve Open Market Committee (FOMC) meeting on November 1st. Whilst the European Central Bank (ECB) has not yet raised interest rates it has pared back its big bond-buying program. Oil was the undoubted winner this week, getting a boost after Saudi Arabia said it wants to prolong the OPEC output-reduction deal into 2018.

Total fund raises announced more than doubled to C$110.1 million, a two-week high, which included three brokered financings for C$36.6 million, a two-week high, and one bought-deal financing for C$12.0 million, a three-week low. The average offer size grew to C$2.8 million, a two-week high, whilst the total number of financings announced jumped to 40, a 12-week high.

Gold looks like it may have turned the corner on a two-week losing streak. After hitting a two-month low of US$1,267/oz on Thursday, it closed the week on US$1,273/oz, down from US$1,280/oz the previous week. Gold is now up 10.9% since the start of the year. The van Eck managed GDXJ followed suit, hitting a two-month low of US$31.91 on Thursday and recovering to US$32.10 on Friday, compared to US$33.27 a week ago. It is now up 1.74% so far in 2017. The chart for the US Global Go Gold ETF was similar too, falling to US12.07 on Thursday and revering to US$12.15 to close out the week, but down from US$12.50 last week. The SPDR GLD ETF saw inventories sell down to 851 tonnes from 853 tonnes a week ago.

In other commodities, silver fell below US$17/oz and closed at US$16.87/oz compared to US$17.03 a week ago. Copper ended the week giving up a few cents to close at US$3.10/lb from US$3.16/lb a week. The winning commodity of the week was oil with WTI hitting its highest price since February to close the week at US$53.90 a barrel from US$51.47 per barrel a week ago.

The Dow Jones Industrial Average again smashed through the record set the previous week to break through 23,000 for the first time ever as it closed at 23,328 from 22,871 last week. Canada’s S&P/TSX Composite Index posted a similar growth chart and closed up at 15,857 from 15,807 the previous week. The S&P/TSX Venture Composite Index gave back some of last week’s gains to close at 789.51 from 797.44 the previous week.

The Oreninc team had a busy week, recording the next episode of the Oreninc Podcast series with Mercenary Geologist Micky Fulp from the New Orleans Investment Conference, and launch the second deal for the Oreninc Mining Deal Club.

 

Summary:

  • Number of financings jumped to 40, a 12-week high.
  • Three brokered financings were announced this week for C$36.6m, a two-week high.
  • One bought-deal financing was announced this week for C$12.0, a three-week low.
  • Total dollars increased to C$110.1m, a two-week high.
  • Average offer size grew to C$2.8m, a two-week high.

 

 

Financing Highlights

TMAC Resources (TSX:TMR) opened a C$20.4 million public offering of 2.9 million shares @ C$7.00.

  • TMAC directors and officers will participate a minimum of C$2.0 million.
  • Concurrent with this, Resource Capital Fund VI and Newmont Mining will complete a private placement of 2.2 million and 2.1 million shares at C$7.00 for C$15.3 million and C$14.4 million respectively.
  • The net proceeds will be used for the continued ramp up of the processing plant, continued advancement of the Hope Bay belt and for general corporate purposes.
  • Through a syndicate of underwriters led by BMO Capital Markets that is expected to close on or about November 9th.

 

Major Financing Openings:

  • TMAC Resources (TSX:TMR) opened a C$20.35 million offering underwritten by a syndicate led by BMO Capital Markets on a best efforts basis. The deal is expected to close on or about November 9th.
  • TMAC Resources (TSX:TMR) opened a C$15.25 million offering on a strategic deal basis with Resource Capital Fund VI.
  • TMAC Resources (TSX:TMR) opened a C$14.39 million offering on a strategic deal basis with Newmont Mining.
  • Cardinal Resources (TSX:CDV) opened a C$12 million offering underwritten by a syndicate led by Clarus Securities on a bought deal basis. The deal is expected to close on or about November 14th.

Major Financing Closings:

  • Tintina Resources (TSXV:TAU) closed a C$10.78 million offering on a best efforts basis.
  • Atlantic Gold (TSXV:AGB) closed a C$6.5 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.
  • Pacific Rim Cobalt (CSE:BOLT) closed a C$4.47 million offering on a best efforts basis. Each unit included half a warrant that expires in 24 months.
  • Kairos Capital (TSXV:KRS) closed a C$4 million offering on a best efforts basis.

Company news

NuLegacy Gold (TSXV:NUG) engaged Mine Development Associates to produce a NI 43-101 compliant resource for the Iceberg gold deposits in Nevada.

  • The resource will be constrained to the about 35% of the 3km strike length of the Iceberg deposits with sufficient drill density to support a calculation.
  • Using a cut-off incorporating all holes drilled to the end of 2017 the resource will be published in 1Q18.

Analysis

The resource estimate will enable NuLegacy to extrapolate how many ounces might be in Iceberg as a whole, and thus estimate the drilling budget required to confirm the total possible resource.

 

LiCo Energy Metals (TSXV:LIC) provided a update on its diamond drilling program at the Teledyne and Glencore Bucke cobalt properties in Ontario, Canada.

  • LiCo has completed 12 holes for 1,010m testing the Main and Northwest zones on the Glencore Bucke Property.
  • The company has added a second drill rig to accelerate the exploration program and the rig has commenced initial drilling on the Teledyne property.

  

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