ORENINC INDEX up as financings jump
ORENINC INDEX - Monday, October 7th 2019
North America’s leading junior mining finance data provider
Last Week: 23.12 (Updated)
This week: 45.14
Silver Spruce Resources (TSXV:SSE) completed field crew preparation and due diligence plans for the Melchett Lake Zn-Au-Ag VMS base metal project in Thunder Bay, Ontario, Canada.
The Oreninc Index almost doubled in the week ending October 4th, 2019 to 45.14 from an updated 23.12 as the number of financings jumped.
A less exciting (volatile) week for gold as gold hovered around the US$1,500/oz level.
The week closed with the US Bureau of Labor Statistics reporting non-farm payrolls data and stating 136,000 jobs were created in September, fewer than consensus forecasts although the unemployment rate fell to a new record low of 3.5% down from 3.7%. This followed data from payrolls firm ADP earlier in the week which showed US companies added fewer jobs than expected and the US ISM manufacturing index falling to 47.8 in September from 49.1 in August, its lowest level since 2009 suggesting this US economy is slowing.
Earlier in the week, the US announced it would implement $7.5 billion of duties on European exports after the World Trade Organization ruled in favor of the US in a dispute over European Union support and subsidies for aircraft manufacturer Airbus. Tariffs from 10% to 25% were implemented on goods including whiskey, wine, cheese and aircraft components.
In Brexit news, UK prime minister Boris Johnson finally published his plan to address the Irish border issue, which was rapidly decried as unworkable by the EU. The question now is will he or won’t he ask the EU for another extension to postpone beyond October 31st the date when the UK may leave the block.
In Hong Kong, the four-month long pro-democracy protests continue with the police beginning to use live ammunition.
On to the money: total fund raises announced increased to $40.5 million, a one-week high, which included two brokered financings for $15.1 million, a two-week high, and one bought-deal financing for $15 million, also a two-week high. The average offer size fell to $1.3 million, a four-week low, while the number of financings increased to 30.
Gold closed up at US$1,504/oz from $1,497/oz a week ago. The yellow metal is up 17.32% so far this year. The US dollar index continued to ride high although it closed down at 98.80 from 99.10 last week. The VanEck managed GDXJ closed up at US$38.24 from $37.60 a week ago. The index is now up 26.54% so far in 2019. The US Global Go Gold ETF closed up at US$16.06 from $15.84 a week ago. It is up 40.75% so far in 2019. The HUI Arca Gold BUGS Index closed up a smidge at 211.29 from 210.60 last week. The SPDR GLD ETF inventory closed up at 923.76 tonnes from 922.88 tonnes a week ago.
In other commodities, silver closed down a tad at US$17.55/oz from $17.65/oz a week ago. Copper continued to lose ground as it shed a few cents and closed down at US$2.56/lb from $2.59/lb a week ago. Oil continued to slide as WTI closed down at US$52.81 a barrel from $55.91 a barrel a week ago.
The Dow Jones Industrial Average closed down again at 26,573 from 26,820 a week ago. Canada’s S&P/TSX Composite Index also closed down at 16,449 from 16,694 the previous week. The S&P/TSX Venture Composite Index closed down as well at 558.76 from 569.58 last week.
Summary
- Number of financings increased to 30.
- Two brokered financings announced this week for $15.1m, a two-week high.
- One bought-deal financing was announced this week for $15m, a two-week high.
- Total dollars heightened to $40.5m, a one-week high.
- Average offer lowered to $1.3m, a four-week low.
Financing Highlights
New Pacific Metals(TSXV:NUAG) announced a bought deal financing with BMO Capital Markets to raise $15 million.
- 3.75 million shares @ $4.
- 15% over allotment option
- Main shareholder Silvercorp Metals indicated its intent to participate to maintain its 28.93% holding.
- Proceeds will be used to advance exploration and development at the Silver Sand project in Potosi, Bolivia.
Major Financing Openings
- New Pacific Metals (TSXV:NUAG) opened a $15 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 October 25th.
- GFG Resources (TSXV:GFG) opened a $3.7 million offering on a best efforts basis. Each unit includes half a warrant that expires in two years.
- Cartier Resources (TSXV:ECR) opened a $2.94 million offering on a best efforts basis. The deal is expected to close on or about October 31st.
- Metallic Minerals (TSXV:MMG) opened a $2.75 million offering on a strategic deal basis. Each unit includes half a warrant that expires in two years.
Major Financing Closings
- Marathon Gold (TSX:MOZ) closed a $25.3 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis. Each unit included half a warrant that expires in two years.
- Point Loma Resources (TSXV:PLX) closed a $1.66 million offering underwritten by a syndicate led by Mackie Research Capital on a best efforts basis.
- Callinex Mines (TSXV:CNX) closed a $1.01 million offering on a best efforts basis. Each unit included half a warrant that expires in two years.
Company News
Silver Spruce Resources (TSXV:SSE) completed field crew preparation and due diligence plans for the Melchett Lake Zn-Au-Ag VMS base metal project in Thunder Bay, Ontario, Canada.
- Mobilization is scheduled in the first week of October for a ten-day field program focusing on the known targets with drill core and surface exposures.
- SSE can purchase the property for C$150,000 in cash, $250,000 in stock and a minimum work expenditure of $1.0 million prior to the third anniversary.