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Oreninc Index: October 22, 2018

ORENINC INDEX jumps as gold comes back to life

ORENINC INDEX - Monday, October 22nd 2018

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Last week index score: 16.72

This week: 64.42

The Oreninc Index jumped in the week ending October 19th, 2018 to 64.42 from 16.72 a week ago as financings increased as the gold price continued to rise after its recent increase.

Tensions between the US and key countries around the world are increasing adding to the fear trade that benefits the gold price. China has accused the US of creating Cold War conditions due to the freedom of navigation missions of US warships in the South China Sea in defiance of China’s territorial claims over various island archipelagos where it has constructed military installations. This is in addition to tariffs the US has placed against US$250 billion of Chinese imports, a factor that may have contributed to China’s economic growth slowing to 6.5% in the third quarter, its weakest pace since 2009.

The US is also increasingly unhappy with Middle East ally Saudi Arabia over the disappearance and alleged murder of Washington Post journalist and US resident Jamal Khashoggi inside a Saudi consulate in Istanbul, Turkey. The incident has seen the oil price fall and also resulted in high-profile delegates cancelling their participation in the Davos in the Desert event in late October.

On to the money: total fund raises announced jumped to C$93.2 million, a four-week high, from C$10.1 million, which included two brokered financings, a four-week high, and two bought-deal financings, also a four-week high. The average offer size also jumped to C$2.9 million, a four-week high, whilst the number of financings increased to 32, a 20-week high.

Gold continued to gain as it closed up at US$1,226/oz from US$1,217/oz a week ago. It is now down 5.86% this year. The US dollar index increased again to 95.71 from 95.22 last week. The van Eck managed GDXJ continued to increase as it closed up at US$29.63 from US$29.30 a week ago. The index is down 13.18% so far in 2018. The US Global Go Gold ETF also took a step forward as it closed up at US$11.10 from US$11.02 a week ago. It is now down 14.68% so far in 2018. The HUI Arca Gold BUGS Index closed up at 155.58 from 153.30 last week. The SPDR GLD ETF had a volatile week with its inventory increasing to 745.82 tonnes from 744.64 tonnes a week ago, although down on its mid-week high of 748.76 tonnes.

In other commodities, silver added a few cents as it closed up at US$14.62/oz from US$14.58/oz a week ago. Copper lost a few cents to close down US$2.77/lb from US$2.80/lb last week. Oil took a hit as WTI closed down at US$69.12 a barrel from US$71.34 a barrel a week ago.

The Dow Jones Industrial Average regained some recently lost ground as it closed up at 25,444 from 25,339 last week. Canada’s S&P/TSX Composite Index gained as it closed up at 15,470 from 15,414 the previous week. The S&P/TSX Venture Composite Index continued to pull back as it closed down at 682.16 from 698.60 last week.



·      Number of financings surged to 32, a 20-week high.

·      Ten brokered financings were announced this week for $62.8m, a 44-week high.

·      Two bought-deal financings were announced this week for $16.5m, a four-week high.

·      Total dollars increased to C$93.2m, a four-week high.

·      Average offer size elevated to C$2.9m, a four-week high.



Financing Highlights

Bonterra Resources (TSXV:BTR) announced a financing of up to C$20.0 million.

·      Up to 2.0 million flow-through shares @ C$3.80 and up to 3.8 million non-flow-through shares @ C$3.30.

·      Sprott Capital Partners is lead agent

·      Prior to closing, Bonterra will complete a 10:1 share rollback. Upon completion and prior to closing the offering, it is expected to have 39.7 million shares issued and outstanding.

·      Gross proceeds will be used for Canadian exploration expenses.


Integra Resources (TSXV:ITR) announced a C$14 million financing via a C$10 million bought deal and a C$4 million non-brokered private placement @ C$0.80. The non-brokered private placement was subsequently increased to C$5.5 million.

·      Raymond James is acting as lead underwriter and sole bookrunner, with a 15% over-allotment option that could elevate the gross proceeds of the public offering to C$11.5 million.

·      The public offering is expected to close on November 6th.

·      The net proceeds will be used to fund exploration and development expenditures at the DeLamar project in Idaho.


Major Financing Openings

·      Bonterra Resources (TSXV:BTR) opened a C$ 20 million offering underwritten by a syndicate led by Sprott Capital Partners on a best efforts basis.

·      Integra Resources (CSE:ITR) opened a C$ 14 million offering underwritten by a syndicate led by Raymond James on a bought deal basis.

·      Osisko Metals (TSXV:OM) opened a C$ 6.5 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.


Major Financing Closings

·      Equinox Gold (TSXV:EQX) closed a C$ 65 million offering on a best efforts basis.

·      Equinox Gold (TSXV:EQX) closed a C$ 32.5 million offering underwritten by a syndicate led by Scotiabank on a bought deal basis.    

·      Fission 3.0 (TSXV:FUU) closed an C$ 8 million offering on a best efforts basis.


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