Oreninc Index falls as deals dry up again, March 23, 2018

The Oreninc Index fell in the week ending March 23rd, 2018 to 26.70 from an updated 52.33 a week ago as financings once again dried to a trickle.

The Oreninc Index fell in the week ending March 23rd, 2018 to 26.70 from an updated 52.33 a week ago as financings once again dried to a trickle.

The week was full of news that was generally positive for gold led by the US Federal Reserve’s latest monetary policy decision that confirmed the long-expected interest rate increase, but more importantly, the Fed indicated that it will only make three rate increases this year. Gold surged on this news, putting in one of its strongest weeks for nearly two years.

This news was compounded by action on the geopolitical front as US president Donald Trump announced a US$50-60 billion trade tariff package aimed squarely at China, causing fears that a trade would could result.

On to the money: total fund raises announced more than halved to C$33.7 million, a two-week low, which included one brokered financing for a paltry C$0.7m, an eleven-week low, and no bought-deal financings. The average offer size fell to C$1.5 million, a two-week low.

A strong week for gold saw the yellow metal close up at US$1,347/oz from US$1,314/oz a week ago. Gold is now up 3.42% this year. Meanwhile, the US dollar index closed down at 89.44 from 90.23 a week ago. The van Eck managed GDXJ also closed up at US$32.78 from US$31.41 last week. The index is down 3.96% so far in 2018. The US Global Go Gold ETF also jumped to close up at US$12.74 from US$12.44 from a week ago. It is down 2.11% so far in 2018. The HUI Arca Gold BUGS Index put in growth to close up at 176.86 from 171.16 last week. The SPDR GLD ETF continued to add ounces to close at 850.54 tonnes from 840.22 tonnes a week ago.

In other commodities, the silver rebounded and closed up at US$16.56/oz from US$16.33/oz a week ago. Copper bucked the positive metals trend with a negative week to close down at US$2.99/lb from US$3.10/lb last week. Meanwhile, oil put in a strong week and closed up at US$65.88 a barrel from US$62.34 a barrel a week ago.

The Dow Jones Industrial Average took a hit from president Trump’s China tariffs announcement, shedding more than 1,000 points to close down at 23,533 from 24,946 last week. Likewise, Canada’s S&P/TSX Composite Index took a nose dive to close down at 15,223 from 15,711 the previous week. The S&P/TSX Venture Composite Index also closed down at 817.80 from 833.67 last week.

Summary:

  • Number of financings dropped to 23, a two-week low.
  • One brokered financing was announced this week for $0.7m, a eleven-week low.
  • No bought-deal financings were announced this week, a two-week low.
  • Total dollars fell to $33.7m, a two-week low.
  • Average offer size also fell to $1.5m, a two-week low.

Financing Highlights

IDM Mining (TSX:IDM) opened a C$4.35 million non-brokered private placement offering on a best efforts basis.

  • 54.4 million units comprising flow-through units @ C$0.09 and non-flow-through units @ C$0.08
  • Each unit will consist of one share and a quarter warrant exerciseable @ C$0.12 for two years.
  • Net proceeds will go towards permitting, community relations, First Nation engagement, engineering and development activities of the Red Mountain gold project near Stewart, BC, Canada.

Major Financing Openings:

  • IDM Mining (TSX:IDM) opened a C$4.35 million offering on a best efforts basis. Each unit includes half a warrant that expires in 24 months.
  • Golden Harp Resources (TSXV:GHR.H) opened a C$4 million offering on a best efforts basis.
  • Maple Gold Mines (TSXV:MGM) opened a C$3.8 million offering on a best efforts basis. The deal is expected to close on or about March 28th.
  • Velocity Minerals (TSXV:VLC.H) opened a C$3.5 million offering on a best efforts basis. Each unit includes half a warrant that expires in 12 months.

Major Financing Closings:

  • GT Gold (TSXV:GT) closed a C$6.52 million offering on a best efforts basis.
  • Ascot Resources (TSXV:AOT) closed a C$6.5 million offering underwritten by a syndicate led by Sprott Capital Partners on a best efforts basis.
  • Sarama Resources (TSXV:SWA) closed a C$4 million offering underwritten by a syndicate led by Arlington Group Asset Management on a best efforts basis.  
  • VR Resources (TSXV:VRR) closed a C$2 million offering on a best efforts basis.  

About Oreinc.com:

Oreninc.com is North America’s leading provider of relevant financing information in the junior commodities space. Since 2011, the company has been keeping track of financings in the junior mining as well as oil and gas space. Logging all relevant deal and company information into its proprietary database, called the Oreninc Deal Log, Oreninc quickly became the go-to website in the mining financing space for investors, analysts, fund managers and company executives alike.

The Oreninc Deal Log keeps track of over 1,400 companies, bringing transparency to an otherwise impenetrable jungle of information. The goal is to increase the visibility of transactions and to show financings activity in a digestible format. Through its daily logging activities, Oreninc is in a position to pinpoint momentum changes in the markets, identify which commodities are trending and which projects are currently receiving funding.

Website:  www.oreninc.com

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