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

ORENINC INDEX – Monday, March 19th 2018

Last week index score: 26.73

This week: 40.03

 

Prospero Silver (TSXV:PSL) discovered a new gold & silver-bearing epithermal vein system during a three-hole drill program at the Pachuca SE project in Hidalgo, Mexico.

Avrupa Minerals (TSXV:AVU) said its C$500,000 private placement financing is fully subscribed.

The Oreninc Index surged in the week ending March 16th, 2018, with the index increasing to 40.03 from 26.73 a week ago as financings, particularly brokered deals, began flowing again.

Despite strong fundamentals for precious and base metals, stocks continue to chart with insouciance. Certainly, cryptocurrencies and marijuana stocks have occupied some of the investor attention that would formerly have been doted on them.

A relatively quiet week on the geopolitical front, with a diplomatic spat arising between the UK and Russia over the poisoning of a former spy and his daughter in the UK. The UK has expelled Russian diplomats and Russia has returned the favour.

Gold experienced rolling punches throughout the week as rising inflation in the US could transpose into multiple interest rate rises throughout the year. The US CPI Index rose 0.2% in February following from a 0.5% increase in January, higher than expectations. Whilst a 25-basis point interest rate increase is widely expected at the Federal Reserve monetary policy meeting this week all ears will be on the tone of its comments about the potential for additional rises later this year.

On to the money: total fund raises announced increased to C$85.6 million, a two-week high, which included seven brokered financing for C$25.3m, a two-week high, and two bought-deal financings for C$15.7 million, a two-week low. The average offer size more than doubled to C$2.6 million, a two-week high.

A less volatile but deflationary week for gold saw the yellow metal close down at US$1,314/oz from US$1,323/oz a week ago. The van Eck managed GDXJ also closed down slightly at US$31.41 from US$31.72 last week. The index is down 7.97% so far in 2018. The US Global Go Gold ETF fared slightly better to close up on the week at US$12.44 from US$12.43 a week ago. It is down 4.37% so far in 2018. The HUI Arca Gold BUGS Index continued to fall and closed down at 171.16 from 172.92 last week. This index features 15 companies involved in gold mining and is an indication of how well gold companies perform relating to the gold price. The SPDR GLD ETF saw gains in the week to close at 840.22 tonnes from 833.73 tonnes a week ago.

In other commodities, the silver sell-off continued as it closed down at US$16.33/oz from US$16.58/oz a week ago. Copper also had a negative week and closed slightly down at US$3.10/lb from US$3.13/lb last week. Meanwhile, oil closed slightly up at US$62.34 a barrel from US$62.04 a barrel a week ago.

The Dow Jones Industrial Average pulled back in the week to close down at 24,946 from 25,335 last week. Conversely, Canada’s S&P/TSX Composite Index closed up at 15,711 from 15,577 the previous week. The S&P/TSX Venture Composite Index also put in gains and closed at 833.67 from 828.90 last week.

Summary:

 

  • Number of financings tripled to 33, a six-week high.
  • Seven brokered financings were announced this week for C$25.3m, a two-week high.
  • Two bought-deal financings were announced this week for C$15.7m, a two-week high.
  • Total dollars shot up to C$85.6m, a two-week high.
  • Average offer size more than doubled to C$2.6m, a two-week high.

Financing Highlights

International Tower Hill Mines (TSX:ITH) opened a C$15.6 million offering on a best efforts basis.

  • Non-brokered private placement of 24.0 million shares @ US $0.50 per share for aggregate gross proceeds of US$12 million (C$15.6 million).
  • Proceeds to be used for the continuation of optimization studies in efforts to further improve and de-risk the Livengood gold project, required environmental baseline studies and general working capital purposes.
  • New strategic investor Electrum Strategic Opportunities Fund acquired 19.9 million shares (10.7%). Paulson & Co acquired 4.1 million shares to increase its ownership to 32.0%.

Major Financing Openings:

  • International Tower Hill Mines (TSX:ITH) opened a C$15.6 million offering on a best efforts basis.
  • Auryn Resources (TSXV:AUG) opened a C$8.76 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada on a bought deal basis. The deal is expected to close on or about March 23rd.
  • Tinka Resources (TSXV:TK) opened a C$7.01 million offering underwritten by a syndicate led by GMP Securities on a bought deal basis. Each unit includes half a warrant that expires in 12 months. The deal is expected to close on or about April 4th.
  • Tinka Resources (TSXV:TK) opened a C$6 million offering on a best efforts basis.

Major Financing Closings:

  • Millennial Lithium (TSXV:ML) closed a C$24.15 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis. Each unit included half a warrant that expires in 24 months.
  • International Tower Hill Mines (TSX:ITH) closed a C$15.6 million offering on a best efforts basis.
  • Millennial Lithium (TSXV:ML) closed a C$6.38 million offering on a strategic deal basis. Each unit included half a warrant that expires in 24 months.
  • Stina Resources (TSXV:SQA) closed a C$3 million offering on a best efforts basis.

Company News

Prospero Silver (TSXV:PSL) discovered a new gold & silver-bearing epithermal vein system during a three-hole drill program at the Pachuca SE project in Hidalgo, Mexico.

  • An 1,800m drill program tested three targets with deep, angled holes with intercepts including 1.35m @ 227Ag demonstrating that the negligible Ag and Au anomalies we noted in the surface alteration are related to a potentially significant epithermal vein system at depth.
  • The Pachuca drilling completes proof of concept drilling of three initial targets funded by Fortuna Silver (TSX:FVI).

Analysis

Prospero cut new vein systems within 25km of one of the world’s great silver-gold districts that produced over 1.2Boz of silver. Hitting multi-ounce and multi-gram silver and gold grades during scout drilling bodes well for future follow-up drilling on the 6-7km of linear, structurally-controlled alteration at surface on its concession. Following completion of the proof-of-concept drilling, Fortuna now has the option to enter into a JV on one of the targets tested.

Avrupa Minerals (TSXV:AVU) said its C$500,000 private placement financing is fully subscribed.

  • 6.25 million units @ C0.08. Each unit is comprised of one share and a warrant exercisable @ C$0.12 for two years.
  • Proceeds will be used for working capital and exploration in Portugal and Kosovo.

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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