Sponsors

show more ▾

Our Presentation from VRIC 2017

VRIC17 Oreninc Slide1

top banners orenthink

Orenthink

Jared M Lemen has not set their biography yet

Oreninc Index Update: March 20, 2017

ORENINC INDEX increases as gold moves up

 

ORENINC INDEX - Monday, March 20, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Kootenay Silver Inc. (TSXV: KTN) began phase II leach testing of oxide and sulphide silver mineralization on bulk samples from the La Cigarra silver deposit using SILVOX process.

AuRico Metals Inc. (TSX: AMI) receives environmental assessment approval for Kemess underground project.

 

Last week index score: 65.62

This week: 69.20

 

The Oreninc Index increased in the week ending March 16, 2017 to 69.20 following the previous week’s strong retrenchment to 65.62 as gold consolidated above the US$1,200 per ounce level to close the week at US$1,228.

Gold, silver and copper increased mid-week after the US Federal Reserve announced a 0.25% increase in interest rates. Market analysts say that this increase was expected and already priced into the market, and the fact that the press conference comments by Federal Reserve Chair Janet Yellen were dovish, provided a sell-the-rumour, buy-the-fact trading action. Whilst the Federal Reserve is expected to continue raising rates throughout 2017 and 2018 market observers believe that rate increases will now happen at a slower pace than previously thought.

The period following the PDAC (Prospectors and Developers Association Conference) in Toronto in early March has traditionally corresponded to the shutting of the first significant financing window of the year, with deals dropping off after the conference, known as the PDAC curse. Evidence of this was present this week as the number of financings fell to 27, a nine-week low, even though the total dollars increased to C$128.9m, a two-week high and the average offer size doubled to C$4.7m, a two-week high. This latter figures were skewed however by a financing by oil company Painted Pony. Of the 27 financings announced, there were two brokered financings for C$102.8m, a four-week high, and one bought-deal financing for C$98.8m, a seven-week high. The PDAC curse of reduced financings usually recovers in April. 

With gold having a stronger week, the industry’s leading benchmark index, the van Eck GDXJ saw growth resume and is now up 14.99% so far in 2017, as did the inventory of the SPDR GLD ETF which increased from 825.22 tonnes a week ago to 834.1 tonnes this week.

With strikes continuing at some of the world’s largest copper mines the copper price strengthened slightly to close at US$2.69 per compound compared to US$2.60 per pound a week ago. With management and the union at Escondida no closer to negotiation than when the strike started over a month ago, management is considering a lock-out and closure of its installations.

WTI crude remained under US$50 after falling below that psychological level last week for the first time since December 2016.

The Dow Jones Industrial Average continued above the 20,000 mark and consolidated at 20,914 after closing the previous week at 20,902. In Canada, the S&P/TSX Composite Index also had a week of consolidation although trending down on the previous weeks’ 15,506 to close at 15,490. In the junior space, the S&P/TSX Venture Composite Index closed up on the week at 810.59 from 799.19 the previous week. This index hit a year high of 844.96 on 21st February.

This past week, Oreninc published its latest podcast with The Mercenary Geologist Mickey Fulp recorded at the PDAC, to get his observations on the event, which is available on www.oreninc.com.

Financial news highlights

Trevali Mining (TSX: TV) entered into an agreement with BMO Capital Markets for a bought deal private placement of C$230 million. The proceeds will be used to pay for the purchase of a portfolio of zinc assets from Glencore for an aggregate purchase price of US$400 million. Traveli also expects to fund a portion of the cash consideration through a new senior secured credit facility of US$190 million.

K92 Mining (TSX-V:KNT) arranged a non-brokered private placement to raise up to C$10.0 million to raise funds for grade control, expansion and exploration drilling, work on the underground incline drive at its Kora deposit of its Kainantu project in Papua New Guinea. K92 began an underground drive at Kora in early March that is a a continuation of the Irumafimpa incline drive. Kora is a high-grade gold deposit with a resource estimate of 4.36 million tonnes grading 7.3 g/t Au, 35 g/t Ag & 2.23% Cu. K92 is targetting first production from Kora oin 1H18.

 

Summary:

  • Number of financings dropped to 27, a nine-week low.
  • Two brokered financings were announced for $102.8m, a four-week high.
  • One bought-deal financings were announced for $98.8m, a seven-week high.
  • Total dollars increased to $128.9m, a two-week high.
  • Average offer size doubled to $4.7m, a two-week high.

 

Major Financing Openings:

  • Painted Pony Petroleum (TSX:PPY) opened a C$ =INT( 100,901,360.00 )/1000000 100.9 million offering underwritten by a syndicate led by Cormark Securities on a bought deal basis. The deal is expected to close on or about April 4, 2017.
  • K92 Mining (TSX-V:KNT) opened a C$10 million offering on a best efforts basis. Each unit includes a warrant that expires in 12 months.
  • Aurania Resources (TSX-V:ARU) opened a C$4 million offering underwritten by a syndicate led by Maison Placements Canada on a best efforts basis. Each unit includes half a warrant that expires in 18 months. The deal is expected to close on or about March 31, 2017.
  • Tower Resources (TSX-V:TWR) opened a C$3.2 million offering on a best efforts basis.  Each unit includes half a warrant that expires in 60 months.

 

Major Financing Closings:

  • Argonaut Gold (TSX:AR) closed a C$ =INT( 40,080,000.00 )/1000000 40.08 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.
  • Golden Predator (TSX-V:GOM) closed a C$17.25 million offering underwritten by a syndicate led by Clarus Securities on a bought deal basis.
  • Lithium X Energy (TSX-V:LIX) closed a C$15.01 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.
  • Perpetual Energy (TSX:PMT) closed a C$9 million offering on a best efforts basis.

 

Company news

Kootenay Silver Inc. (TSXV: KTN) C$0.28, Mkt Cap C$48.9 million

  • Began phase II leach testing of oxide and sulphide silver mineralization on bulk samples from the La Cigarra silver deposit in Chihuahua, Mexico, using the proprietary SILVOX Technologies process.
  • The program will determine if La Cigarra silver mineralization is amenable to low-cost heap leach processing using SILVOX.
  • Previous metallurgical work focused on conventional floatation to produce a concentrate that achieved recoveries up to 88% silver and produced a high-grade lead-silver concentrate containing 34% lead and 23,000 g/t silver.
  • Preliminary oxide mineralization metallurgical testing showed a significant improvement in silver recoveries using standard leaching with SILVOX versus standard leaching without it.
  • Kootenay aims to maximize la Cigarra’s economic viability through resource expansion and optimization.

Kootenay Silver is an exploration company with projects in the Sierra Madre region of Mexico and in British Columbia, Canada. Its leading properties are the La Cigarra silver project and the Promontorio Mineral Belt, in Chihuahua, Mexico and Sonora, Mexico. The Promontorio mineral belt includes the La Negra high-grade silver discovery and its Promontorio silver resource that is under option to Pan American Silver.

Conclusion:

If phase II leach testing of oxide and sulphide silver mineralization is successful, Kootenay will have a strong handle on a key cost component as it looks to prepare a preliminary economic assessment for La Cigarra going forward in addition to be able to factor in higher silver recoveries.

 

AuRico Metals Inc. (TSX: AMI) C$1.13, Mkt Cap C$178.6 million

  • Received a positive decision statement from the Canadian Environmental Assessment Agency (CEAA) and that the British Columbia Environmental Assessment Office (EAO) granted an Environmental Assessment Certificate for the Kemess underground project.
  • Obtaining these approvals was possible through support from the company’s First Nations partners: the Tsay Keh Dene, Kwadacha and Takla Lake First Nations.
  • The Keness project will require various additional normal course licenses and permits that are expected to be received early in 2018.
  • The March 2016 feasibility study for Kemess underground contemplates a low-cost panel caving operation with an initial 12-year mine life with total mine production of 1.4Moz of gold, 573Mlb copper and 4.5Moz of silver.  Gold-equivalent production for the first five years is expected to average 238koz/y. Project capex is estimated at US$452 million.

 Conclusion:

The main permitting hurdle to Kemess is now overcome giving the company a line-of-sight on being able to complete the paperwork and be in a position to make a construction decision.

 

Read More
76 Hits
0 Comments

Oreninc Index Update: March 13, 2017

ORENINC INDEX sees strong pullback as gold tests $1,200 USD

 

ORENINC INDEX - Monday, March 13, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

AuRico Metals Corp. (TSX: AMI): Completed acquisition of Kiska Metals

Kootenay Silver Inc. (TSXV: KTN) new Oreninc sponsor

Last week index score: 94.43

This week: 65.62

The Oreninc Index saw a strong pullback in the week ending March 9, 2017 to 65.62 from 93.45 the previous week as gold pulled back and fell below the $1,200 USD per ounce before closing the week at $1,204 USD.

The first quarter of the year is traditionally the strongest financing window of the year, with deals dropping off in March after the PDAC (Prospectors and Developers Association Conference) in Toronto, and this year is playing out true to form. Total fund raising dollars announced fell significantly to C$97.1m from C$285.5m, a nine-week low, which included five brokered financings for a total of C$25.1m within which was one bought-deal financing for C$4.0m. The average offer size fell to a nine-week low as well, to C$2.1m from $6.5m, whilst the total number of financings announced increased slightly to 47, a two-week high. As a footnote, financings and therefore the Oreninc Index has historically experienced a hard fall in early March—what many people refer to as the PDAC hangover or PDAC curse—and usually recovers sometime in April. 

With gold having a weak week, the industry’s leading benchmark index, the van Eck GDXJ continued to retrench and is now up just 9.95% so far in 2017. In line with the gold pullback, the SPDR GLD ETF gold inventory sold of 825.22 tonnes, its lowest volume since February 6, 2017.

Despite strikes at three of the world’s largest copper mines (Escondida in Chile, Grasberg in Indonesia and as of Friday 10 March, joined by Cerro Verde in Peru) the copper price weakened to close at $2.60 per pound. With the Escondida strike passing thirty days (longer than the 25-day stoppage in 2006), management is now making overtures to the strikers to come to terms. Before these strikes, many copper analysts were forecasting copper to enter supply deficit in 2017.

It is not just gold and copper that are down: WTI crude took a sharp drop and fell below $50 USD for the first time since December 2016.

The Dow Jones Industrial Average continued above the 20,000 mark and coming off a record 21,155 the previous week to close at closing at 20,902. The S&P/TSX Composite Index also continues at near historic high levels but down slightly on the prior week at 15,506.

The past week saw the behemoth PDAC conference that brought together over 24,000 people from the juniors, mid tiers and majors, finance people and suppliers. Attendance was up a couple of thousand over 2016 and juniors expressed greater optimism. Many have been able to finance in recent weeks and have sufficient cash for 12-18 months’ work. One takeaway is that money is starting to trickle down to explorers and not just in low political risk jurisdictions such as Canada and the US. There was standing room only in the presentations by Argentina, Ecuador and Colombia showing that appetite for risk is starting to return.

Whilst at PDAC, Oreninc also sat down with The Mercenary Geologist Mickey Fulp to record Podcast #4 in the ongoing series, to get his observations on the event, which will be available on www.oreninc.com shortly.

 

Financial news highlights

GoldQuest Mining Corp. (TSXV: GQC) announced and closed a strategic investment by Agnico Eagle Mines (TSX: AEM) via a non-brokered private placement of 38.1M shares at a price of C$0.60 for a total investment of C$22.86M that saw Agnico take a 15% stake in the explorer. The proceeds will be primarily used for exploration and development of properties in the Tireo Belt in Dominican Republic.

Highland Copper Company Inc. (TSXV: HI) (the “Company”) increased the size of the non-brokered private placement it originally announced in Novermber 2016 to up to 265.0M units at a price of $0.10 per unit. The original C$17M raise has been increased to $26.5M. The company expects to close a final tranche of the placement by March 17. So far the company has issued 49.4M units under the first and second tranches that closed on November 30, 2016 and February 22, 2017. Highland intends to use the proceeds to update the feasibility study on its Copperwood project, to complete the acquisition of the White Pine project and to settle its liabilities.

Summary:

  • Number of financings increased to 47, a two-week high
  • Five brokered financings were announced for $25.1m, a nine-week low.
  • One bought-deal financings were announced for $4.0m, a two-week high.
  • Total dollars decreased to $97.1m, a nine-week low.
  • Average offer size lower to $2.1m, a nine-week low.

 

Major Financing Openings:

  • Goldquest Mining Corp. (TSXV:GQC) opened a $22.86 million offering on a strategic deal basis.
  • Renaissance Oil Corp. (TSXV:ROE) opened a $10 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis. Each unit includes one warrant that expires in 27 months. The deal is expected to close on or about March 29, 2017.
  • White Gold Corp. (TSX-V:WGO) opened a $10 million offering underwritten by a syndicate led by GMP Securities on a best efforts basis. The deal is expected to close on or about March 21, 2017.
  • Goldstrike Resources Ltd. (TSX-V:GSR) opened a $6.03 million offering on a strategic deal basis. Each unit includes one warrant that expires in 48 months.

Major Financing Closings:

  • Itafos (TSXV:IFOS) closed a $45.93 million offering underwritten by a syndicate led by Raymond James on a best efforts basis.
  • Goldquest Mining Corp. (TSXV:GQC) closed a $22.86 million offering on a strategic deal basis.
  • Ascendant Resources Inc. (TSXV:ASND) closed a $20.04 million offering underwritten by a syndicate led by Eight Capital on a best efforts basis. Each unit includes a 1/2 warrant that expires in 60 months. 
  • IDM Mining Ltd. (TSX:IDM) closed a $15.25 million offering on a strategic deal basis.

Company news

AuRico Metals Corp (TSX: AMI) C$1.00, Mkt Cap C$149.7 million

  • Completed acquisition of Kiska Metals Corp.

  • Kiska's royalty portfolio consists of six royalties including on the East Timmins and Boulevard properties operated by Kirkland Lake Gold and Independence Gold

  • Kiska's six exploration projects present organic royalty creation opportunities.

  • AuRico now has a portfolio of 17 royalties

AuRico Metals is a mining development and royalty company the gold-copper Kemess property in British Columbia, Canada that hosts the feasibility-stage Kemess Underground project and the Kemess East exploration project. AuRico's royalty portfolio includes a 1.5% NSR royalty on the Young-Davidson gold mine and a 2% NSR royalty on the Fosterville mine.

Conclusion: The Kiska Metals acquisition provides royalty diversification and long-term growth potential through assets located in North America. It also sees the company grow its exploration portfolio in British Columbia within relative proximity to Kemess.

 

Kootenay Silver Inc. (TSXV: KTN) C$0.30, Mkt Cap C$51.5 million

Oreninc welcomes Kootenay Silver as a sponsor. Kootenay is an exploration company with projects in the Sierra Madre region of Mexico and in British Columbia, Canada. Its leading properties are the La Cigarra silver project and the Promontorio Mineral Belt, in Chihuahua, Mexico and Sonora, Mexico. La Cigarra hosts a resource estimate of 18.54Mt containing 51.47Moz of silver in the Measured & Indicated categories grading 86.3 g/t Ag & 4.45Mt tonnes containing 11.46Moz Ag in the Inferred category grading 80 g/t Ag. The Promontorio mineral belt includes the La Negra high-grade silver discovery and its Promontorio silver resource that is under option to Pan American Silver. The Promontorio silver resource hosts a resource estimate of 44.5Mt containing 92Moz AgEq in the Measured & Indicated categories grading 64.3 g/t AgEq & 14.6Mt containing 24.3Moz AgEq in the Inferred category grading 52 g/t AgEq.

 

Read More
104 Hits
0 Comments

Oreninc Index Update: March 6,2017

ORENINC INDEX falls below 100 as gold falters

 

ORENINC INDEX - Monday, March 6, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

NuLegacy Gold Corp. (TSXV: NUG): Provided guidance on its 2017 exploration and corporate programs.

Last week index score: 107.24

This week: 93.45

The Oreninc Index retrenched in the week ending March 2, 2017 to 93.45 from 107.24 the previous week as gold pulled back from $1,249 USD per ounce the previous week to $1,234 USD.

Total fund raising dollars announced rose to C$285.5m from C$175.3m, a seven-week high, which included nine brokered financings for a total of C$9.3m within which were one bought-deal financings for C$0.4m. However, the average offer size almost doubled to C$6.5m from $3.5m, whilst the total number of financings announced pulled back further to 44, a four-week low.

Whilst the gold price had a strong week, the industry’s leading benchmark index, the van Eck managed GDXJ pulled back sharply and is now just 12.61% so far in 2017. However, the SPDR GLD ETF gold inventory grew slightly to 845.32 tonnes, its highest volume since December 15, 2016.

The copper price remained firm to close at $2.71 per pound despite the strike at Escondida, the world’s largest copper mine, completing 23 days. Escondida produces about 1.1 million tonnes a year of copper, some 5% of the world’s copper production.

The Dow Jones Industrial Average continued to plough ahead in record territory, breaking through the 21,000-mark reaching a mid-week peak of 21,155 and closing at 21,005. The S&P/TSX Composite Index had an even week closing at 15,536.

The past week saw Canadian bank BMO host its Metals and Mining event where major miners and advanced exploration company went speed dating with fund managers, and now the behemoth PDAC conference gets underway in Toronto on Sunday March 5 that will bring together tens of thousands of people from the juniors, mid tiers and majors, finance people and suppliers.

Financial news highlights

Royalty company Altius Minerals Corp (TSX:ALS) linbed up additional cash with which to make deals after entering into a letter agreement with Fairfax Financial Holdings Ltd under which Fairfax will make an up to C$100 million private placement investment for 5% preferred securities issuable in tranches of not less than C$25 million by no later than December 31, 2017. The proceeds will be used for investing in opportunities it identifies within the mining and minerals sector and for general corporate purposes.

Leagold Mining Corp (TSX-V:LMC.H) had a big week from a finance point of view. It executed a non-binding term sheet with Orion Resources Partners to provide US$200 million in cash through a senior secured five-year loan facility for US$150 million and an equity private placement of US$50 million after receiving strong interest in an equity component rather than doing a US$200 million debt financing. A previously announced subscription receipt offering is now expected to raise gross proceeds of C$175 million. The proceeds will be used to finance the acquisition of the Los Filos Mine.

Summary:

  • Number of financings lowered to 44, a four-week low
  • Nine brokered financings were announced for $9.3m, a four-week low.
  • One bought-deal financings were announced for $0.4m, an eight-week low.
  • Total dollars rose to $285.5m, a seven-week high.
  • Average offer size almost doubled to $6.5m, a five-week high.

 

Major Financing Openings:

  • Altius Minerals Corp. (TSX:ALS) opened a $100 million offering on a strategic deal basis. Each unit includes 1 warrant that expires in 60 months.
  • Blackbird Energy (TSX-V:BBI) opened a $80 million offering underwritten by a syndicate led by Cormark Securities Inc. on a best efforts basis. The deal is expected to close on or about March 22, 2017.
  • Leagold Mining Corp (TSX-V:LMC.H) opened a $50 million offering on a strategic deal basis.
  • Knick Exploration Inc. (TSX-V:KNX) opened a $10.15 million offering on a best efforts basis. The deal is expected to close on or about March 15, 2017.

Major Financing Closings:

  • Osisko Mining Inc. (TSX:OSK) closed a $82.2 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.  
  • INV Metals Inc. (TSX:INV) closed a $27.6 million offering underwritten by a syndicate led by GMP Securities LP on a bought deal basis.  
  • Serinus Energy Inc. (TSX:SEN) closed a $25.2 million offering underwritten by a syndicate led by GMP FirstEnergy on a best efforts basis.  
  • JDL Gold Corp. (TSX-V:JDL) closed a $20 million offering underwritten by a syndicate led by Haywood Securities Inc. on a bought deal basis.  

Company news

NuLegacy Gold Corp (TSXV: NUG) C$0.26, Mkt Cap C$77.6 million

  • Provided guidance on its 2017 exploration and corporate programs.
  • Initial 2017 drilling will consist of 38 to 40 holes totalling about 10,500m focused on determining the extent of the gold mineralization in the Avocado deposit, exploring the Deep Iceberg, VIO and Jasperoid Basin anomalies, and expanding the established near-surface Iceberg deposits.

  • 65% will consist of deeper drilling to explore for additional deposits and 35% will concentrate on expanding the gold footprint of Iceberg's near-surface deposits.

  • Further geophysical and geochemical surveys will be completed in areas identified prospective for mineralization by 2016 geologic mapping and survey programs to generate additional drill targets.

  • Once new deposits have been confirmed/discovered, budget approvals will be sought for immediate drilling program expansion.

 

NuLegacy Gold is an advanced stage Nevada exploration company focused on expanding its Carlin-style near-surface Iceberg oxide gold deposit. It is focused on establishing a multi-million ounce near-surface oxide gold resource at Iceberg that grades 0.9 g/t to 1.1 g/t Au during the 2017-2018 drilling seasons and expanding the gold endowment size of the recently discovered Avocado gold deposit;

 

Conclusion: NuLegacy has an aggressive exploration plan to advance its aim of selling or merging with a qualified producer.

Read More
137 Hits
0 Comments

Oreninc Index Update: February 27, 2017

ORENINC INDEX stays over 100 as gold strengthens

 

ORENINC INDEX - Monday, February 27, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Prospero Silver Corp. (TSXV: PSL): Bermudez is drill ready

 

Last week index score: 112.76

This week: 107.24

 

The Oreninc Index pulled back in the week ending February 23, 2017 to 107.24 from 112.76 the previous week, whilst remaining over 100. Gold had a strong week closing at $1,249 USD, meaning gold has risen 4.68% in the last thirty days.

Total fund raising dollars announced fell slightly to C$175.3m from C$184.5m, which included 8 brokered financings for a total of C$95.1m within which were six bought-deal financings for C$75.2m. However, the average offer size increased from $2.7m to $3.5m, whilst the total number of financings announced pulled back sharply to 50 from 68.

Whilst the gold price had a strong week, the industry’s leading benchmark index, the van Eck managed GDXJ pulled back sharply and is now up 27.07% so far in 2017. However, the SPDR GLD ETF gold inventory remained at 841.17 tonnes, its highest volume since December 16, 2016.

The copper price continued to soften to close at $2.69 per pound despite a strike continuing at Escondida, the world’s largest copper mine that produces about 1.1 million tonnes a year of copper, some 5% of the world’s copper production.

The Dow Jones Industrial Average continued to plough ahead in record territory closing the week at 20,821, marking ten-days straight of breaking records, which seemed to hot a pace for the S&P/TSX Composite Index to keep as it fell back to 15,533.

Canadian bank BMO is hosting its Metals and Mining event this week which sees major miners and advanced exploration company do speed dating with fund managers, so it is likely that new private placements and bought deals will be announced as a result of this in the weeks ahead.

Financial news highlights

Argonaut Gold Inc. (TSX:AR) opened a $40.08 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. The net proceeds will be used for the acquisition of 420 hectares of properties adjacent to the El Castillo Mine from Fresnillo Plc  that cover known projections of El Castillo mineralization. Argonaut agreed to pay $26 million in cash for the concessions. El Castillo produces over 70,000 ounces a year of gold.

With the copper price showing signs of life in recent months Highland Copper Company Inc. (TSX-V:HI) has repeatedly extended a US$17 million non-brokered private placement originally announced in November until March 17th. Highland will use the proceeds to update the feasibility of the Copperwood project, to complete the acquisition of the White Pine project, to settle its liabilities and for general corporate purposes.

Once again money is being raised for lithium, this time with Lithium X Energy Corp. (TSX-V:LIX) seeking $15.01 million underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis for exploration and development work on the Sal de Los Angeles lithium project in Salta, Argentina.

Summary:

  • Number of financings decreased to 50, a two-week low
  • Eight brokered financings were announced for $95.1m, a three-week low.
  • Six bought-deal financings were announced for $75.2m, a three-week low.
  • Total dollars lowered to $175.3m, a two-week low.
  • Average offer size increased to $3.5m, a two-week high.

 

Major Financing Openings:

  • Argonaut Gold Inc. (TSX:AR) opened a $40.08 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. The deal is expected to close on or about March 15, 2017.
  • Ascendant Resources Inc. (TSX-V:ASND) opened a $17.43 million offering underwritten by a syndicate led by Eight Capital on a best efforts basis. The deal is expected to close on or about March 7, 2017.
  • IDM Mining Ltd. (TSX:IDM) opened a $15.25 million offering on a strategic deal basis. The deal is expected to close on or about March 1, 2017.
  • Lithium X Energy Corp. (TSX-V:LIX) opened a $15.01 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis. The deal is expected to close on or about March 14, 2017.

Major Financing Closings:

  • Neo Lithium Corp. (TSX-V:NLC) closed a $25.01 million offering underwritten by a syndicate led by Sprott Capital Partners on a bought deal basis.
  • Red Eagle Mining Corp. (TSX:R.TO) closed a $17.25 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.
  • Erdene Resource Development Corp. (TSX:ERD) closed a $13.8 million offering underwritten by a syndicate led by Paradigm Capital Inc. on a bought deal basis.

Company news

Prospero Silver Corp (TSXV: PSL) C$0.27, Mkt Cap C$2.47 million

  • Completed additional sampling and mapping at the Bermudez project in Chihuahua, Mexico and has now completed mapping and sampling over 4.5km strike length of outcropping high-level banded, low-sulphidation veins.
  • Designed a preliminary diamond drill program to test the three zones.
  • Begins to look for a joint venture partner for Bermudez.

Prospero is a project generator focused on Mexico and with the low sulphidation epithermal vein system traced over 4.5km at Bermudez, the project is now drill ready and the ideal time for the company to seek a joint venture partner to fund the drilling program.

Conclusion: Prospero has successfully migrated Bermudez from a prospect to drill ready status that is ready for a joint venture partner.

 

Read More
159 Hits
0 Comments

Oreninc Index Update: February 21, 2017

ORENINC INDEX EXPLODES TO NEW 2017 HIGH

 

ORENINC INDEX - Tuesday, February 21, 2017

 North America’s leading junior mining finance data provider

Follow us on facebook and find us on Twitter @Oreninc

 

AuRico Metals (TSX:AMI): 2016 year-end results and outlook 2017, Kemess Update

 

Last week index score: 90.26

This week: 112.76

 

The Oreninc Index continued to surge ahead in the week ending February 16, 2017 to 112.76 from 90.26 the previous week. Gold had another week of consolidation closing the week virtually the same as the previous week at $1,234 USD after hitting an inter-week high over $1,240 USD.

Total fund raising dollars announced grew to C$184.5m from C$166.1m, a three-week high, which included 17 brokered financings for a total of $134.0m within which were eleven bought-deal financings for $95.0m, a three-week high. The average offer size fell from $3.5m to $2.7m, a six-week low, whilst the total number of financings announced jumped to 68.

Whilst the gold price had an even week, the industry’s leading benchmark index, the van Eck managed GDXJ pulled back slightly and is now up 30.74% so far in 2017. However, the SPDR GLD ETF gold inventory continued to inch upwards and closed the week at 841.17 tonnes, after hitting a high of 843.54 on Wednesday, its highest volume since December 16, 2016.

The copper price softened during the week to close at $2.72 per pound despite a strike continuing at Escondida, the world’s largest copper mine that produces about 1.1 million tonnes a year of copper, some 5% of the world’s copper production.

The Dow Jones Industrial Average continued to plough ahead in record territory closing the week at 20,624 and the S&P/TSX Composite Index followed suit, reaching a record high of 15,864 on Thursday before closing the week at 15,838.

 

Financial news highlights

JDL Gold Corp. (TSX-V:JDL) opened a $15 million offering underwritten by a syndicate led by Haywood Securities Inc. on a bought deal basis and due to substantial demand, increased a non-brokered private placement to $50 million from $27 million.

The financings follow JDL and Luna Gold (TSX: LGC) agreeing to a business combination that will be named Trek Mining Inc. that will have the Aurizona gold project in Brazil as its lead asset that has a pre-feasibility study for a mine that would produce 150,000 ounces a year of gold.

The financial markets continue to warm to the re-emergence of Ecuador as a jurisdiction for mining investment as INV Metals Inc. (TSX:INV) opened a $24 million offering underwritten by a syndicate led by GMP Securities LP on a bought deal basis. This is another example of a bought deal financing being extended (from an initial $20 million), a trend discussed in last week’s Oreninc podcast with Mercenary Geologist Micky Fulp. INV Metals’ Loma Larga gold-copper project has a pre-feasibility study to produce 150,000 ounces a year of gold and many observers think it could be the next gold project into production in Ecuador once Lundin Gold (TSX: LUG) has built a mine at the Fruta del Norte deposit.

Leagold Mining Corp. (TSX-V: LMC) amended and restated a preliminary prospectus in connection with a subscription receipt financing underwritten by a syndicate led by BMO Capital Markets that included an indicative offering pricing range and a 5:1 share consolidation plan. Leagold announced in January that it would purchase the Los Filos gold mine in Mexico from Goldcorp Inc. (TSX: G) for $350 million by paying $279 million in cash and $71 million in stock. Leagold plans to raise the cash component from the net proceeds from the subscription offering and $200 million in term loan credit facilities. The offering price will be between $2.75 and $3.25 per subscription receipt to raise gross proceeds of between $130 million and $200 million.

Summary:

  • Number of financings jumped to 68, a 41-week high.
  • 17 brokered financings were announced for $134.0m, a three-week high.
  • Eleven bought-deal financings were announced for $95.0m, a three-week high.
  • Total dollars grew to $185.4m, a three-week high.
  • Average offer size up slightly to $2.7m, a six-week low

Major Financing Openings:

  • INV Metals Inc. (TSX:INV) opened a $ =INT( 24,000,000.00 )/1000000 24 million offering underwritten by a syndicate led by GMP Securities LP on a bought deal basis. The deal is expected to close on or about March 2, 2017.
  • JDL Gold Corp. (TSX-V:JDL) opened a $ =INT( 15,000,000.00 )/1000000 15 million offering underwritten by a syndicate led by Haywood Securities Inc. on a bought deal basis. The deal is expected to close on or about March 31, 2017.
  •  eCobalt Solutions Inc. (TSX:ECS) opened a $ =INT( 15,000,000.00 )/1000000 15 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis. Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about February 28, 2017.
  • TAG Oil Ltd. (TSX:TAO) opened a $ =INT( 10,000,250.00 )/1000000 10 million offering underwritten by a syndicate led by Mackie Research Capital Corp. on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about March 15, 2017.

Major Financing Closings:

  • Los Andes Copper Ltd. (TSX-V:LA) closed a $ =INT( 8,040,000.00 )/1000000 8.04 million offering on a strategic deal basis.
  • Jet Metal Corp. (TSX-V:JET) closed a $ =INT( 6,833,610.00 )/1000000 6.83 million offering underwritten by a syndicate led by Mackie Research Capital Corp. on a best efforts basis.
  • Columbus Gold Corp. (TSX-V:CGT) closed a $ =INT( 5,040,000.00 )/1000000 5.04 million offering underwritten by a syndicate led by Beacon Securities Ltd. on a bought deal basis.
  • PMI Resources Ltd. (TSX-V:PMI) closed a $ =INT( 4,780,500.00 )/1000000 4.78 million offering on a best efforts basis.

Company news

Aurico Metals (TSX: AMI) C$1.15, Mkt Cap C$172.2 million

  • Reported its 2016 year end results and 2017 outlook
  • The company obtained royalty revenue of $8.1 million, an increase of $3.8 million (88%) over 2015.

At its Kemess project in British Columbia, Canada,

Aurico expects a final decision regarding the issuance of an environmental assessment certificate near the end of the first quarter for its Kemess gold-copper project in British Columbia. In January, the draft assessment issued by the British Columbia Environmental Assessment Office said the Kemess underground project would not result in significant adverse effects. The company also announced an updated mineral resource estimate for the Kemess East deposit that saw a 73.9 million tonne, or 188%, increase in the indicated resource. Going forward, Aurico plans to progress permitting and detailed engineering for Kemess underground, provide an update on the Kemess East deposit in the second quarter and complete the Kiska acquisition as well as continuing to look for accretive royalty acquisitions.

Conclusion: Aurico had a good 2016 and has several development milestones on the horizon in 2017 for its Kemess project that should drive value growth.

Read More
316 Hits
0 Comments
Powered by EasyBlog for Joomla!