Our Presentation from VRIC 2017

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Oreninc Index Update: February 27, 2017

ORENINC INDEX stays over 100 as gold strengthens

 

ORENINC INDEX - Monday, February 27, 2017

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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.

 

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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

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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.

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Frank Holmes: Gold has the same DNA volatility as the US Dollar

Frank Holmes: Gold has the same DNA volatility as the US Dollar

Published February 17, 2017

In this interview, Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors, speaks with Hannah Bernard about what precious metals investors should know right now and why royalty and streaming companies are a good way to gain exposure to gold. Frank goes on to talk about some of the royalty companies he likes right now, gold’s DNA volatility, and how GDP and PMI are macro-economic drivers in the market. Frank also touches on the terms “Fear trade” and “Love trade” and discusses whether they’re still relevant.

 

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Oreninc Index Update: February 13, 2017

ORENINC INDEX REBOUNDS AS CASH POURS INTO JUNIORS 

 

ORENINC INDEX - Monday, February 13, 2017

North America’s leading junior mining finance data provider

 

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NuLegacy Gold (TSXV: NUG): Drill results

Prospero Silver Corp. (TSXV: PSL): Exploration and Project Update

 

Last week index score: 76.28

This week: 90.26

 

The Oreninc Index rebounded in the week ending February 9, 2017 to 90.26 from 76.28 the previous week. Gold had another strong week consolidating over the $1,200 USD mark and continuing to rise to close the week at $1,233 USD after hitting a three-month high at $1,240 USD on Thursday.

Total fund raising dollars announced grew to C$166.1m from C$148.3m, a two-week high, which included 14 brokered financings for a total of $127.3m within which were ten bought-deal financings for $90.1m. The average offer size nudged up from $3.5m to $3.7m, and the total number of financings announced increased to 45. 

Several financings have been increased from the initial raise amount due to demand, a trend that Mercenary Geologist Micky Fulp discusses in the latest Oreninc podcast, which he says is evidence that, “the market is moving into a bull cycle that looks similar to the one seen in early 2009.”

Reflecting the continued strengthening of gold, the industry’s leading benchmark index, the van Eck managed GDXJ continued its upward trend and is now up 32.52% so far in 2017. The SPDR GLD ETF gold inventory closed the week at 836.7 tonnes, its highest volume since December 16, 2016.

Copper continues to rise hitting a twelve-month high of $2.76 per pound, and showing signs of further growth as a strike began Thursday 9 February 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 remaining over 20,000 and closing the week at 20,269 whilst the S&P/TSX Composite Index reached another record high and closed at 15,729.

 

Financial news highlights

Lithium again pulled in the cash with Advantage Lithium Corp. (TSX-V:AAL) closing a $20 million offering underwritten by a syndicate led by Dundee Securities and Liberty One Lithium Corp. (TSX-V:LBY.H) announcing a $3.5m financing. Advantage Lithium struck a deal in November 2016 with Australia’s Orocobre–the world’s newest lithium producer–to joint venture the Cauchari project in Argentina. 

Also of note, Osisko Mining Inc. (TSX:OSK) opened a $30 million bought deal offering underwritten by a syndicate led by BMO Capital Markets and Canaccord Genuity to fund exploration in Canada where it is planning a massive 250,000m 2017 drill program focusing on Windfall deposit and Black Dog discovery in Quebec. Only three hours later the company increased its bough deal offering to a staggering $52 million. Concurrently Osisko has announced a $30 million bought deal flow through financing.

Columbian gold producer Red Eagle Mining (TSX: R) announced a bought deal financing of C$10 million by a syndicate led by BMO Capital Markets that was quickly increased to C$15 million due to strong demand. This financing is the first time for several years that the company has turned to the Canadian market for funding as previous recent raises to finance the construction of its San Ramon gold mine in Colombia that began production in late 2016 have been undertaken in Peru, with private equity groups and with its mine building contractor. One of the results of this raise could be that Red Eagle starts receiving analyst coverage on Bay St.

 

Summary:

  • Number of financings increased to 45.
  • 14 brokered financings were announced for $127.3m, a two-week high.
  • Ten bought-deal financings were announced for $90.1m, a two-week high.
  • Total dollars grew to $166.1m, a two-week high.
  • Average offer size up slightly to $3.7m, a two-week high

 

Major Financing Openings:

  • Osisko Mining Inc. (TSX:OSK) opened a $60.11 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 February 28, 2017.
  • Questerre Energy Corporation (TSX:QEC) opened a $24.33 million offering underwritten by a syndicate led by Pareto Securities AS on a best efforts basis. 
  • Probe Metals Inc. (TSX-V:PRB) opened a $10.03 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis. The deal is expected to close on or about February 28, 2017.
  • Nighthawk Gold Corp. (TSX-V:NHK) opened a $10 million offering - later increased to $20 million - underwritten by a syndicate led by PI Financial Corp. on a bought deal basis. Each unit includes a 1/2 warrant that expires in 18 months. The deal is expected to close on or about March 2, 2017.

Major Financing Closings:

  • Fortuna Silver Mines Inc. (TSX:FVI) closed a $97.99 million offering underwritten by a syndicate led by Raymond James Ltd. on a bought deal basis.
  • Golden Star Resources Ltd. (TSX:GSC) closed a $34.5 million offering underwritten by a syndicate led by Clarus Securities Inc. on a bought deal basis. 
  • Questerre Energy Corporation (TSX:QEC) closed a $24.33 million offering underwritten by a syndicate led by Pareto Securities AS on a best efforts basis.    
  • Advantage Lithium Corp. (TSX-V:AAL) closed a $20 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a best efforts basis.

 

Company news

NuLegacy Gold (TSXV: NUG) C$0.28, Mkt Cap C$80.5 million 

  • Reported an assay of 42.5m @ 0.56 g/t Au from core hole AV-4C at its Avocado gold orebody in Nevada that twinned the September 2016 reverse circulation (RC) discovery hole AV-2.
  • AV/4C included an interval of 5.1m @ 2.57 g/t Au proving Avocado's Carlin-type gold system's ability to produce high grades.
  • Stratigraphic analysis of AV-4C indicates the next drill holes should be drilled to the north and north-west of AV-2 and AV-4C in pursuit of the higher-grade source of gold encountered in AV-2 via an initial 10,000 ft. (five RC holes) drilling program.
  • Conclusions AV-4C was AV-2 which indicates that the gradient direction to drill is to west, north-west, which the company will target with its spring drilling campaign.

Conclusion: The promising Avocado discovery adds to the potential of Red Hill/Iceberg project in Nevada that are on trend from Barrick Gold’s Pipeline, Cortez and Goldrush gold deposits. NuLegacy’s chief geoscience officer Dr. Roger Steininger is credited with discovering Pipeline in 1989 and Iceberg in 2012.

 

Prospero Silver Corp. (TSXV: PSL) C$0.28, Mkt Cap C$2.5 million

  • Generative exploration program leads to five projects with plans to add two more soon.
  • Permitting work has been completed to bring the projects to drill-ready status.
  • The Santa Maria del Oro project in Durango and Pachuca SE project in Hildalgo are now drill-ready and drill permit and environmental approvals are imminent.
  • The El Petate project in Hidalgo now has 27 drill sites permitting and the company is in negotiations with the aim of securing a minimum drilling commitment for it.
  • Field work at the Bermudez project means it is drill-ready or ready to JV.
  • On the corporate side, 2.4 million warrants were exercised in the last quarter of 2016 and into early 2017, bringing C$275,657 into the company’s coffers.
  • Prospero has 30.57-million shares issued (46.5 million fully diluted) and cash is about C$1.47 million.

Conclusion: Prospect generator Prospero continues to generate new prospects in Mexico and advancing them to drill ready status but the key for the company will be finding funding partners to take them forward.

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Interview Series: Mickey Fulp, Mercenary Geologist - February 9, 2017

Part 2 in our excklusive, bi-weekly interview series with Mickey Fulp, the Mercenary Geologist.

We discuss with Mickey the recent developments in the markets, take a closer look at current financings and the overall sentiment.

The interview was receorded on February 9th, 2017.

 

Participants:
- Mickey Fulp, Mercenary Geologist
- Kai Hoffmann, CEO Oreninc
- Paul Harris, Staff Writer Oreninc

 

 

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