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Oreninc Index Update: July 3rd, 2017

ORENINC INDEX fells as gold slide continues

 

ORENINC INDEX - Monday, July 3, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Last week index score: 86.47

This week: 61.25

 

Zinc One Resources (TSXV: Z) exercised an option to acquire the Bongará zinc oxide and Charlotte Bongará zinc oxide

Avrupa Minerals (AVU:TSXV) arranged a $500,000 private placement that it subsequently increased C$1 million.

LiCo Energy Metals (TSXV: LIC) opened an exploration & development office in Santiago, Chile

 

The Oreninc Index fell in the week ending June 29th, 2017 to 61.25 from 86.47 the previous week.

Total fund raises announced fell to C$97.1 million, a four-week low, which included two brokered financings for a total of C$65.0 million, a four-week low, within which there were two bought-deal financings for C$65.0 million, a 15-week high. The average offer size fell to C$3.5 million, a four-week low, whilst the total number of financings announced fell to 28, a seven-week low.

Spot gold closed at US$1,241/oz, down from US$1,256 the previous week. Signs indicating that gold could have a rebound week punctured early on when a massive sell order of 1.8 million ounces trade executed at the close of the Asian trading day. Some commentators said this must have been a fat-finger muppet trade, stating that a trade of 18,149 ounces is very typical, but a trade of 18,149 lots of a futures contract (100 times bigger) is not. Others focused on that fact that the gold market absorbed this US$2.2 billion sale in less than a minute, during a period of illiquidity and the price only fell 1%.

The van Eck managed GDXJ has been on a downward trend since its recent rebalance and is now up 5.8% so far in 2017. The inventory of the SPDR GLD ETF remained flat at 854 tonnes, the same as the previous week. This week saw US Global launch its GO GOLD and Precious Metal Miners ETF (NYSE: GOAU) that will be a quant-driven ETF fund rebalanced quarterly that will actively look at factors that separate the good from bad.

In other commodities, silver spot price had a falter week closing US$16.62/oz from US$16.71 the previous week. The Comex copper price continued its steady run up to close at US$2.71 per pound from US$2.63 the previous week. Oil had a better week, finally breaking its losing streak to close at US$46.24 per barrel from US$43.01 last week. This was its longest run of gains in six months although it is still down 10% during the second quarter, which has cut US$113 billion from the value of companies listed in the MSCI World Energy Sector Index.

The Dow Jones Industrial Average saw a rare losing week to close down at 21,349 from 21,394 the previous week. Canada’s S&P/TSX Composite Index also fell to close at 15,182 from 15,319 the previous week. The S&P/TSX Venture Composite Index continued its general downward trend to close at 766.74.

Summary:

  • Number of financings fell to 28, a seven-week low.
  • Two brokered financings were announced for $65.0m, a four-week low.
  • Two bought-deal financing were announced for $65.0m, a 15-week high.
  • Total dollars dropped to $97.1m, a four-week low.
  • Average offer size decreased to $3.5m, a four-week low.

 

Financial news highlights

Alio Gold (TSX: ALO) entered into a bought deal agreement with a syndicate of underwriters led by Cormark Securities and Clarus Securities

  • 8.0 million units @ C$6.25 for gross proceeds of C$50.0 million.
  • Each unit comprises one share and half a warrant exercisable for one share @ C$8.00 for one year.
  • Net proceeds will be used to advance the Ana Paula project in Guerrero, Mexico.

Bowmore Exploration (TSX-V:BOW) opened a C$15 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.

  • Bowmore begin trading this week as Osisko Metals (TSXV: OM) following a 3:1 share consolidation
  • Aim to build a base metal exploration and development company, with an emphasis on zinc.
  • The company will explore the Bathurst mining camp in New Brunswick, Canada and evaluate zinc targets in Québec.
  • Jeff Hussey president & CEO

Major Financing Openings:

  • Alio Gold (TSX-V:ALO) opened a C$50 million offering underwritten by a syndicate led by Cormark Securities on a bought deal basis. Each unit includes half a warrant that expires in 12 months.
  • Bowmore Exploration (TSX-V:BOW) opened a C$15 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis. Each unit includes a warrant that expires in 24 months. The deal is expected to close on or about July 14th.
  • Bowmore Exploration (TSX-V:BOW) opened a C$7 million offering on a best efforts basis. Each unit includes a warrant that expires in 24 months.
  • K92 Mining (TSX-V:KNT) opened a C$3.55 million offering on a best efforts basis. Each unit includes a warrant that expires in 12 months.

Major Financing Closings:

  • Nemaska Lithium (TSX-V:NMX) closed a C$50 million offering underwritten by a syndicate led by National Bank Financial on a bought deal basis.  
  • K92 Mining (TSX-V:KNT) closed a C$16.55 million offering on a best efforts basis.  Each unit includes a warrant that expires in 12 months.
  • Minera Alamos (TSX-V:MAI) closed a C$5.4 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis.  
  • AuRico Metals (TSX:AMI) closed a C$5 million offering underwritten by a syndicate led by Red Cloud Klondike Strike on a best efforts basis.  

 

Company news

Avrupa Minerals (AVU:TSXV) arranged a $500,000 private placement that it subsequently increased C$1 million.

  • The private placement is fully subscribed.
  • Placement of 5 million units @ C$0.10
  • Each unit is comprised of one share and a warrant exercisable @ C$0.15 for three years.
  • Proceeds will be used for exploration and operations in Portugal, Kosovo and Vancouver.

Conclusion

Having consolidated the Alvalade copper-zinc project in Portugal, Avrupa needed to top up the kitty to prepare for the next stage of drilling.

 

Zinc One Resources (TSXV: Z) exercised an option to acquire the Bongará zinc oxide and Charlotte Bongará zinc oxide

  • Cash payments of US$1.15 million
  • Foundation laid for the redevelopment of Bongará
  • Zinc One is the first company to own these projects together
  • A 6km long trend of known high-grade, zinc-oxide mineralization
  • Bongará was in production 2007 to 2008, but shut with the fall in zinc prices after the global financial crisis
  • Past production showed +20% zinc grades and +90% recoveries

Conclusion

This acquisition will help Zinc One on its path to becoming a zinc producer. It now controls two high-grade zinc projects and will advance them quickly to take advantage of the growing zinc bull market.

 

LiCo Energy Metals (TSXV: LIC) opened an exploration & development office in Santiago, Chile

  • Company preparing to advance the first phase of the Purickuta exploration program within the Salar de Atacama and review additional lithium and cobalt properties for potential acquisition.
  • LiCo holds an option to acquire up to a 60% interest in Purickut.

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Oreninc Index Update: June 26th, 2017

ORENINC INDEX up as gold shows promise of growth spurt

 

ORENINC INDEX - Monday, June 26, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Last week’s index score: 73.66

This week: 86.47

 

Avrupa Minerals (TSXV: AVU) recovered 100% ownership of the Alvalade VMS copper-lead-zinc project in the Iberian pyrite belt in southern Portugal.

Prospero Silver (TSXV: PSL) started drilling at the Matorral project in in the Santa Maria del Oro camp, Durango state, Mexico.

NuLegacy Gold (TSXV: NUG) announced results from the 40-hole, 10,500m drilling campaign on the Red Hill property in the Cortez gold trend of Nevada, USA.

Zinc One (TSXV: Z) plans drilling and PEA

 

The Oreninc Index increased in the week ending June 22th, 2017 to 86.47 from 73.66 the previous week.

Total fund raises announced jumped to C$219.7 million, a 16-week high, which included four brokered financings for a total of C$110.0 million, an 18-week high, within which there were two bought-deal financings for C$30.0 million, a two-week low. The average offer size grew to C$5.4 million, a 16-week high, whilst the total number of financings announced increased to 41, a two-week high.

Gold posted a robust week on the back of weaker US treasury yields and the US dollar index falling to close the week at 97.3 from 97.5 the previous week. The ten-year Treasury Inflation Protected Securities (TIPS) yields also peaked and started moving down again, which in recent history has seen the gold price strengthen.

Gold closed at US$1,256/oz, up from US$1,253 the previous week, but will this upward move see it break through the US$1,300/oz mark?

With its rebalance firmly under its belt the van Eck managed GDXJ put in some good growth as the gold price improved and is now up 8.4% so far in 2017. The inventory of the SPDR GLD ETF remained flat at 854 tonnes, the same as the previous week.

In other commodities, silver spot price mirrored gold’s trajectory and closed the week at US$16.71/oz from US$16.70 the previous week. The Comex copper price had an up-and-down week recovering strongly to close at US$2.63 per pound from US$2.57 the previous week, after falling to US$2.57 mid-week. Oil is the commodity that cannot get a break continuing its losing streak as WTI crude fell to US$43.17 per barrel from US$44.74 last week, but ending the week on an up-tick after hitting a low of US$42.53.

The Dow Jones Industrial Average continued to climb to close up at 21,394 although it ended the week on a down trend after peaking at 21,528. Canada’s S&P/TSX Composite Index saw a stronger week to close at 15,319 up from 15,192 the previous week. The S&P/TSX Venture Composite Index was in growth mode again to close at 777.25.

 

Summary:

  • Number of financings increased to 41, a two-week high.
  • Four brokered financings were announced for $110.0m, an 18-week high.
  • Two bought-deal financing were announced for $30.0m, a two-week low.
  • Total dollars jumped to $219.7m, a 16-week high.
  • Average offer size grew to $5.4m, a 16-week high.

 

 

Financial news highlights

North American Palladium (TSX:PDL) opened a C$40 million offering and C$10 million in flow-through shares by a syndicate coled by Scotiabank, BMO Capital Markets and CIBC Capital Markets and including RBC Capital Markets and TD Securities.

  • The net will be used to repay a portion of the C$123 million debt owed to Brookfield Capital Partners and The Bank of Nova Scotia, exploration, the advancement of open pit pre-stripping and the tailings management facility at its 15,000 tpd Lac des Iles palladium mine in Ontario, Canada that has reserves of 38Mt @ 2.25 g/t palladium.

Major Financing Openings:

  • Oryx Petroleum (TSX:OXC) opened a C$59.37 million offering on a strategic deal basis.
  • Oronova Energy (TSXV: ONV) opened a C$40 million offering underwritten by a syndicate led by Peters and Co on a best efforts basis. The deal is expected to close on or about August 17th.
  • North American Palladium (TSX:PDL) opened a C$40 million offering underwritten by a syndicate led by Bank of Nova Scotia on a best efforts basis.
  • Newcastle Gold (TSXV:NCA) opened a C$15.01 million offering underwritten by a syndicate led by Beacon Securities on a bought deal basis. The deal is expected to close on or about July 13th.

Major Financing Closings:

  • Oryx Petroleum (TSX:OXC) closed a C$ =INT( 59,369,952.00 )/1000000 59.37 million offering on a strategic deal basis.
  • Oryx Petroleum (TSX:OXC) closed a C$13.46 million offering on a strategic deal basis.
  • Standard Lithium (TSXV: SLL) closed a C$7.42 million offering on a best efforts basis.    
  • Aldridge Minerals (TSXV: AGM) closed a C$6.62 million offering on a strategic deal basis.  

 

Company news

NuLegacy Gold (TSXV: NUG) announced results from the 40-hole, 10,500m drilling campaign on the Red Hill property in the Cortez gold trend of Nevada, USA.

  • Every drill hole drilled to date has encountered gold mineralization.
  • Near surface gold mineralization intercepted at Iceberg South with 4.5m @ 0.6 g/t Au opening a ~1,000m as yet undrilled area to the west and northwest.
  • Iceberg Central was drilled as a 70m step out and encountered multiple gold values that opens a corridor that it is anticipated connects to the North zone, with an intercept of 20.5m @ 0.3g/t Au.
  • NuLegacy plans to drill the gold-in-soil anomaly at the VIO claim area some 4km west of the Iceberg's Central zone, as well as the Jasperoid Basin area in the near future.

Analysis

Drilling continues to intercept gold mineralization that will potentially add to the size of NuLegacy’s existing deposits and build its story by showing that there is potential for additional ounces to be added to its overall resources at the Iceberg project from other targets in the area.

 

Prospero Silver (TSXV: PSL) started drilling at the Matorral project in in the Santa Maria del Oro camp, Durango state, Mexico.

  • Drilling is part of a planned 6,900m program to test three projects under the terms of a strategic investment from Fortuna Silver Mines (TSX: FVI).
  • Four holes are planned at Matorral, followed by eight at the Petate project and eight holes at Pachuca SE.
  • The first hole at Matorral is laid out to pin the dip of what is believed to be the controlling structure on potential mineralization at depth. Matorral has over 7km of prospective structures

Analysis

This drilling program is proof of concept drilling that will test the company’s hypothesis of locating potentially large-scale blind silver deposits that are under geological cover.

Avrupa Minerals (TSXV: AVU) recovered 100% ownership of the Alvalade VMS copper-lead-zinc project in the Iberian pyrite belt in southern Portugal.

  • Avrupa signed agreements with two former partners that transfer the outstanding 60% ownership of the project back to the company for debt forgiveness and future payments.
  • An initial drill hole into the Sesmarias target intersected 10.85m @ 1.81% Cu, 2.57% Pb & 4.38% Zn.
  • Drilling hit mineralization over a 1.8km strike length.
  • Subsequent drilling at Sesmarias extended a massive sulphide lens to +300m length with a 20-40m thickness.

Analysis

Recovery of Alvalade means Avrupa is in full control of the highly prospective VMS project. Expect a future plan to be announced once the company has reviewed all project data.

 

Zinc One (TSXV: Z) plans drilling and PEA

  • Plans to collect core for metallurgical testing from an upcoming drill programme as part of a preliminary economic assessment.
  • Drill-platform permit applications being submitted with the intent to begin drilling in the third quarter.
  • The drill program will involve low-cost shallow drilling and tight drill spacing in zones of known mineralization, and test zones on the periphery of the known mineralization.
  • Drilling to be completes by year end with a PEA technical report to be completed shortly thereafter.

Analysis

An independent report on zinc oxide production prepared by Pascal Briol and Noel Masson said that the zinc-oxide ore Bongará in Peru shares a similar mineralogy and general geochemistry of the zinc-oxide ore at the Shaimerden deposit in Kazakhstan that is treated at the Ridder Smelter complex in Kazakhstan with a reported zinc recovery of 95% utilizing a Waelz kiln. As the previous operator of the Bongará mine processed the zinc-oxide mineralization with a Waelz kiln this bodes well for the processing option for a future production scenario.

 

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Oreninc Index Update: June 19, 2017

ORENINC INDEX falls as the GDXJ rebalance finally happens

 

ORENINC INDEX - Monday, June 19, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Last week index score: 84.81 (Updated)

This week: 73.66

 

Castle Silver Resources (TSXV: CSR) reported that chip sampling returned 1.8% cobalt, 8.6% nickel and 25.2g/t silver at its Castle mine in Ontario, Canada.

 

The Oreninc Index fell in the week ending June 16th, 2017 to 73.66 from an updated 84.81 the previous week.

Total raises announced fell to C$139.5 million, a two-week low, which included six brokered financings for a total of C$91.5 million, a 13-week high, within which there were two bought-deal financings for C$60.0 million, a 13-week high. The average offer size fell slightly to C$4.0 million, a two-week low, whilst the total number of financings announced decreased to 35, a two-week low.

It was a week of turbulence for many gold stocks with the VanEck Vectors Junior Gold Miners ETF (GDXJ) rebalance finally happening on Friday June 16th. The rebalance was necessary as the success of the ETF meant that it was approaching 20% significant shareholder status in many companies. To continue to grow, therefore, it will now buy gold miners in the C$75-million to C$2.9-billion market cap, up from C$75-million to C$1.6-billion. As a result, smaller names in the index have been sold off, creating market turbulence.

Gold began the week strongly, hitting a peak of US$1,275 per ounce on Wednesday before falling off to close the week at US$1,256 per ounce, down from the previous week’s US$1,271 per ounce close, as the US Federal Reserve raised interest rates again from 1% to 1.25% and indicated that rate increases could continue. This was the third consecutive quarterly increase in interest rates and came as US jobs growth continued, pushing the unemployment rate down to its lowest level in 16 years. The Fed also said it plans to reduce bond holdings to unwind the huge economic stimulus plan brought in after the great recession.

With the rebalance taking place the van Eck managed GDXJ improved slightly to now be up 4.6% so far in 2017. The inventory of the SPDR GLD ETF pulled back to close at 854 tonnes, from 867 tonnes the previous week.

In other commodities, silver followed gold’s trajectory but with a harder fall to close down on the week at US$16.67. Copper also had a tough week to close at US$2.58 per pound from US$2.64 per pound the previous week. Oil continued to weaken with WTI crude falling to US$44.70 per barrel from US$45.83 per barrel last week.

The Dow Jones Industrial Average continues to climb to close up at 21,383 whilst Canada’s S&P/TSX Composite Index fell to 15,160. The S&P/TSX Venture Composite Index continued to fall to close at 775.91.

 

Summary:

  • Number of financings decreased to 35, a two-week low.
  • Six brokered financings were announced for $91.5m, a 13-week high.
  • Two bought-deal financing were announced for $60.0m, a 13-week high.
  • Total dollars dropped to $139.5m, a two-week low.
  • Average offer size slipped to $4.0m, a two-week low.

 

 Financial news highlights

Nemaska Lithium (TSX:NMX) announced C$50 million bought deal financing to fund ongoing development of its Whabouchi lithium mine and spodumene concentrator and the Shawinigan hydrometallurgical plant.

  • Nemaska aims to become a lithium hydroxide and lithium carbonate supplier to the emerging lithium battery market
  • Spodumene concentrate that will produced at the Whabouchi mine will be shipped to its lithium compounds processing plant to be completed in Shawinigan, Québec from H218.

 

Cordoba Minerals (TSX-V: CDB) announced a C$10 million bought deal financing to provide funds to continue exploration of its San Matias copper-gold project in Colombia.

  • The financing comes as the company converted its joint venture agreement with Robert Friedland’s High Power Exploration company into direct ownership in Cordoba Minerals.

 

Fiore Exploration (TSXV: F) announced a C$17 million private placement financing as part of a business combination with GRP Minerals.

  • The net proceeds will be used for expansion of the leach pads at the Pan mine on the Battle Mountain-Eureka trend in Nevada, drilling at both Pan and Gold Rock in Nevada.
  • Fiore was founded by Frank Giustra and Lithium X founder Brian Paes-Braga
  • It also has a strategic land position surrounding Yamana’s El Peñon mine complex in Chile

 

Major Financing Openings:

  • Nemaska Lithium (TSX-V:NMX) opened a C$50 million offering underwritten by a syndicate led by National Bank Financial on a bought deal basis. The deal is expected to close on or about June 29th.
  • Fiore Exploration (TSX-V:F) opened a C$17 million offering underwritten by a syndicate led by GMP Securities on a best efforts basis.
  • Orca Gold (TSX-V:ORG) opened a C$15 million offering on a best efforts basis.  Each unit includes half a warrant that expires in 12 months.
  • BonTerra Resources (TSX-V:BTR) opened a C$12.91 million offering underwritten by a syndicate led by Sprott Capital Partners on a best efforts basis. The deal is expected to close on or about June 29th.

Major Financing Closings:

  • Candelaria Mining (TSX-V:CXX) closed a C$9.77 million offering on a strategic deal basis.
  • White Gold (TSX-V:WGO) closed a C$8.76 million offering on a strategic deal basis.
  • Jaguar Mining (TSX:JAG) closed a C$7.75 million offering on a best efforts basis.
  • Skeena Resources (TSX-V:SKE) closed a C$5.68 million offering underwritten by a syndicate led by RBC Capital Markets on a best efforts basis.

 

Company news

Castle Silver Resources (TSXV: CSR) reported that chip sampling returned 1.8% cobalt, 8.6% nickel and 25.2g/t silver at its Castle mine in Ontario, Canada.

  • Previous mine operators only assayed for silver
  • Underground sampling covering multiple target areas continues

Conclusion

Sampling is the first step to determining the cobalt, nickel and silver potential at high-grade Castle silver mine, and developing targets for a future drilling program as the company aims to become a player in the cobalt space.

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Oreninc Index Update: June 12, 2017

ORENINC INDEX jumps as gold gets political again

 

ORENINC INDEX - Monday, June 12, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Avrupa Minerals (TSXV: AVU) began exploration at the Alvito iron oxide copper-gold project in Portugal.

Castle Silver Resources (TSXV: CSR) began underground extraction at its Castle silver-cobalt mine in Ontario, Canada.

 

Last week index score: 37.34

This week: 81.01

 

The Oreninc Index increased in the week ending June 9th, 2017 to 81.01 from 37.34 as gold had a roller coaster week, with politics once again dominating the news agenda.

Total raises announced increased to C$180.2 million, a nine-week high, which included five brokered financings for a total of C$83.0 million, a twelve-week high within which there was one bought-deal financing for C$20.0 million, a three-week high. The average offer size doubled to C$4.2 million, an eleven-week low, whilst the total number of financings announced increased to 43, a nine-week high.

In the US, all eyes were on former Federal Bureau of Investigation (FBI) director James Comey who testified before a senate committee about conversations he had with US president Donald Trump prior to being fired. Meanwhile, in the UK, a general election returned Teresa May as prime minister, reaffirming her mandate to lead the UK in its exit from the European Union, although the Conservative Party that she leads lost its overall majority.

Gold began the week strongly hitting US$1,297 per ounce Tuesday and then trailing off for the rest of the week to close at US$1,271 per ounce on Friday, marginally up on the previous week.

The marginal improvement in gold was reflected in the van Eck managed GDXJ that improved slightly to now be up 3.93% so far in 2017. The inventory of the SPDR GLD ETF saw a marked gain to fall close at 867 tonnes, from 851 tonnes the previous week.

In other commodities, silver followed gold’s trajectory but with a harder fall to close down on the week at US$17.22. Copper had a mirror opposite to the two precious metals, starting weak and ending with a bang to close at US$2.64. Oil continued to weaken with WTI crude falling to US$45.83 per barrel.

The Dow Jones Industrial Average experienced another record week to close up at 21,271 whilst Canada’s S&P/TSX Composite Index had an up-and-down week before closing slightly higher at 15,473. The S&P/TSX Venture Composite Index on the other hand, fell below 800 to close at 791.20.

Summary:

  • Number of financings jumped to 43, a nine-week high.
  • Five brokered financings were announced for $83.0m, a 12-week high.
  • One bought-deal financing was announced for $20.0m, a three-week high.
  • Total dollars grew to $180.2m, a nine-week high.
  • Average offer size doubled to $4.2m, a 11-week high.

 

Financial news highlights

Alphamin Resources (TSXV: AFM) announced a US$38 million equity raise to further construction activities at the Bisie tin project.

  • Sprott Capital Partners and Tamesis Partners are leading a best efforts private placement of up to 81,454,000 units priced at C$0.35 to raise about C$28.5 million
  • Simultaneously, the company intends to complete a non-brokered private placement with 44.4% shareholder, Tremont Master Holdings for an additional 65,046,000 units on the same terms to raise about C$22.8 million.
  • The aggregate raisings would be about C$51.3 million.
  • The net proceeds will be applied towards the equity requirement for the continued development of Alphamin’s 82.5% owned Bisie tin project in Democratic Republic of Congo.
  •  Alphamin previously entered into non-binding term sheets in connection with US$80 million of project debt.

Major Financing Openings:

  • Alphamin Resources (TSXV:AFM) opened a C$28.51 million offering underwritten by a syndicate led by Sprott Capital Partners on a best efforts basis. Each unit includes half a warrant that expires in 36 months. The deal is expected to close on or about June 28th.
  • Alphamin Resources (TSXV:AFM) opened a C$22.77 million offering on a strategic deal basis. Each unit includes half a warrant that expires in 36 months. The deal is expected to close on or about June 28th.
  • Harte Gold (TSXV:HRT) opened a C$20 million offering underwritten by a syndicate led by Macquarie Capital Markets on a bought deal basis. The deal is expected to close on or about June 27th.
  • K92 Mining (TSXV:KNT) opened a C$16 million offering underwritten by a syndicate led by Clarus Securities on a best efforts basis. Each unit includes a warrant that expires in 12 months. The deal is expected to close on or about June 21th.

Major Financing Closings:

  • Lithium Americas (TSX:LAC) closed a C$54 million offering on a strategic deal basis.    
  • Delphi Energy (TSX:DEE) closed a C$35 million offering underwritten by a syndicate led by Raymond James on a best efforts basis.  
  • Falco Resources (TSXV:FPC) closed a C$28.75 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. Each unit included half a warrant that expires in 18 months.  
  • North American Nickel (TSXV:NAN) closed a C$10.88 million offering underwritten by a syndicate led by Paradigm Capital on a best efforts basis.  

 

Company news

Avrupa Minerals (TSXV: AVU) began exploration at the Alvito iron oxide copper-gold project in Portugal.

  • Project partner OZ Minerals provided funding for the first phase exploration that is designed to identify and refine IOCG drill targets. OZ Minerals owns two IOCG projects in South Australia:  the producing Prominent Hill mine and the Carrapateena project, currently in feasibility study.
  • Exploration is focused on an area containing a large copper-in-soil anomaly with a strike extent of 24km. The first phase will consist of geological mapping and prospecting, and large, license-wide, gravity and magnetic geophysical surveys. The results will be used to identify and rank drill targets for the second phase.

Conclusion

With exploration at Alvito beginning by IOCG expert partner Oz Minerals, Avrupa is taking the first steps to identifying its real potential.

 

Castle Silver Resources (TSXV: CSR) began underground extraction at its Castle silver-cobalt mine in Ontario, Canada.

  • A large sample was removed from a quartz-carbonate vein structure containing visible cobalt on the first mine level. Some mineralized material is being submitted for assaying while the remainder will be put through the company’s proprietaryRe-2OX hydrometallurgical process to produce high-purity cobalt powders for battery sector end buyer evaluation.
  • A series of bulk samples will be completed over the coming weeks in conjunction with the start of Phase I underground drilling.
  • Castle is also testing the Re-2OX process for recovery of cobalt and lithium from lithium-ion batteries. Re-2OX achieves recovery through stripping the casing, leaching the cathode of the batteries and forming a high-purity precipitate containing the valuable metals. Results from testwork by SGS Lakefield are due shortly.

Conclusion

Castle Silver has various testing programs underway to evaluate the potential of two different potential business streams: the mineral potential of its Castle mine and recycling potential of its Re-2OX process. Positive results would underscore the company’s potential to be a player in the cobalt space.

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Oreninc Index Update: June 5th, 2017

ORENINC INDEX tanks as gold gains

 

ORENINC INDEX - Monday, June 5, 2017

North America’s leading junior mining finance data provider

 

Follow us on facebook and find us on Twitter @Oreninc

 

Last week index score: 73.35

This week: 37.34

 

Prospero Silver (TSXV: PSL) provided an update on planned drilling of the Matorral, Petate and Pachuca SE projects in Mexico.

Zinc One Resources (TSXV: Z) completed the acquisition of Forrester Metals.

 

The Oreninc Index plummeted in the week ending June 1st, 2017 to 37.34 from 73.35 in what was another volatile week for gold.

Total raises announced fell to C$60.0 million, a 21-week low, which included one brokered financing for a total of C$3.5 million, also a 21-week low within which there were no bought-deal financings. The average offer size fell to C$2.1 million, a 12-week low, whilst the total number of financings announced fell to 29, a three-week low.

As per last week, gold finished the week strongly to close at US$1,281 as the US dollar fell after president Donald Trump said that he would remove the country from the Paris climate agreement, to the world’s opprobrium. Trump said the Paris agreement and its voluntary targets was too harsh on US business and would result in job losses, despite the fact that more people in the US are employed in the solar industry than coal mining, and overriding the pleas from business leaders such as Tesla’s Elon Musk and Apple’s Tim Cook, who stated that climate change is very real. In response, the European Union said it would bypass the US federal government and continue to work with US companies and US state governments on implementing the agreement.

Gold is seeing hedge fund managers move back into the space with long positions in US futures up by the most in recent weeks.

Although the gold price had a positive week, the van Eck managed GDXJ fell and is now up just 1.05% so far in 2017. The imminent rebalance of the GDXJ on June 16th is being a sea anchor on many stocks. The inventory of the SPDR GLD ETF held ground and closed at 847.5 tonnes, the same as the previous week.

In other commodities, silver continued its steady growth to close at US$17.55 whilst copper showed the faintest growth to close the week at US$2.57. Despite OPEC recently agreeing to sustain production cuts, oil gave back the gains that decision caused and WTI crude fell to close at US$47.74 per barrel.

The Dow Jones Industrial Average had another strong week and closed up at a new record high of 21,206. Canada’s S&P/TSX Composite Index showed less stellar growth to close the week up at 15,442. The S&P/TSX Venture Composite Index softened to close down slightly at 800.98.

The past week saw Kai Hoffmann of Oreninc present at the International Metal Writers Conference in Vancouver, Canada, and he will present at the 121 Mining Investment Conference in New York, USA on 6-7 June. His presentation will be made available on our website in due course as well.

Finally, we recorded the next episode in the podcast serious with Mercenary Geologist Mickey Fulp which is available at www.oreninc.com.

 

Summary:

  • Number of financings fell to 29, a three-week low.
  • One brokered financings were announced for $3.5m, a 21-week low.
  • No bought-deal financings were announced this week.
  • Total dollars dropped to $60.0m, a 21-week low.
  • Average offer size decreased to $2.1m, a 12-week low.

 

 

Financial news highlights

Northern Vertex Mining (TSX-V:NEE) opened a C$26.92 million offering on a strategic deal basis with Greenstone Resources

  • Settlement of the US$25 million fund raising will occur in US dollars
  • To finance the Moss gold/silver project in western Arizona, USA
  • Greenstone is a private equity fund specialising in the mining and metals sector.
  • Northern Vertex has also recently obtained a US$20 million Sprott loan facility
  • Received final permits to build Moss 
  • C$5 million in warrants exercised
  • US$9 million in equipment financing facility with CAT Financial

 

Major Financing Openings:

  • Northern Vertex Mining (TSX-V:NEE) opened a C$26.92 million offering on a strategic deal basis. Each unit includes half a warrant that expires in 60 months. The company also opened a C$6.73 million offering on a best efforts basis, with half a warrant that expires in 24 months.
  • Aldridge Minerals (TSX-V:AGM) opened a C$6.73 million offering on a strategic deal basis that is expected to close on or about June 15th.
  • Minera Alamos (TSX-V:MAI) opened a C$3.5 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis. The deal is expected to close on or about June 29th.

 

Major Financing Closings:

  • Northern Empire Resources (TSX-V:NM) closed a C$20 million offering underwritten by a syndicate led by Cormark Securities on a best efforts basis.  
  • Almaden Minerals (TSX:AMM) closed a C$17.25 million offering underwritten by a syndicate led by Sprott Capital Partners on a bought deal basis that included half a warrant that expires in 36 months.
  • Alexco Resource (TSX:AXR) closed a C$9.04 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.
  • Cartier Resources (TSX-V:ECR) closed a C$6.01 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.  

 

Sponsor news

Oreninc is proud to announce that Zinc One Resources (TSXV: Z), Castle Silver Resources (TSXV: CSR) and LiCo Energy (TSXV: LIC) are now sponsors and we will be bringing you their news in the weeks ahead.

 

  • Prospero Silver (TSXV: PSL) provided an update on planned drilling of the Matorral, Petate and Pachuca SE projects in Mexico.Prospero selected a drill contractor for its planned 6,000m program on three projects.
  • Drilling is scheduled to begin in late June with the first four holes at Matorral to be followed by eight holes at Petate and then eight at Pachuca SE.

Conclusion

The drilling program aims to test the company’s hypothesis for finding silver deposits under geological cover. The drilling is under the terms of a strategic agreement with Fortuna Silver Mines, which will have the ability to select successful projects for a JV arrangement.

 

Zinc One Resources (TSXV: Z) completed the acquisition of Forrester Metals

  • Together with the acquisition, Zinc One closed a private placement financing of C$10.0 million and is fully funded to move forward with the exploration and development of the high-grade, zinc-oxide Bongara project in Peru
  • Dr. William Williams is the new COO and was formerly CEO of Forrester.
  • The transaction was effected by way of a court approved plan of arrangement and each Forrester shareholder received one share of Zinc One for every 5.5 shares of Forrester.
  • Zinc One issued 24.3 million shares to Forrester shareholders.
  • Zinc One now has 98.7 million shares issued and outstandin.
  • The Bongará zinc oxide project consists of the Bongará zinc oxide mine and the Charlotte Bongará zinc oxide project.
  • Zinc One aims to complete an updated resource estimate by year end with a target of 1.5-2.0 Mt @ >20% Zn

Conclusion

Now that the acquisition is complete, Zinc One can set about defining new zinc resources and its plans for development at Bongara.

 

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