Oreninc Index: July 23, 2018




ORENINC INDEX shrinks again

ORENINC INDEX – Monday, July 23rd 2018

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Last week index score: 54.70(updated)

This week: 27.78

The Oreninc Index continued to shrink in the week ending July 20th, 2018 to 27.78 from an updated 54.70 a week ago although a brokered financing appeared.

US president Donald Trump sees himself as a disruptor who thrives on chaos and unpredictability and whilst people are becoming less surprised by his style of government, markets continue to react to his every nuance. This week the US dollar strength came into the president’s crosshairs with Trump criticizing the policy of the Federal Reserve under Chair Jerome Powell to increase interest rates and thereby strengthening the dollar. The president thus broke with a two-decade tradition of the White House respecting the central bank’s independence, as he seeks a weaker dollar to help US exporters. His comments also contradicted those earlier this year of his advisor Larry Kudlow who advocated King Dollar.

With the world seeming to return to a tariff-regulated protectionist trade scenario, president Trump also threatened to impose them against all US$505 billion of imports from China as the Asian nation responded in kind after the US imposed tariffs on US$34 billion of Chinese imports.

On to the money: total fund raises announced fell to C$44.3 million, a one-week low, which included one brokered financing for C$4.0 million and no bought deal financings. The average offer size fell to a C$2.2 million, a one-week low, whilst the number of financings fell to 20, a two-week low.

Gold continued to fall to close the week down at US$1,229/oz from US$1,244/oz a week ago after recovering from a mid-week low of US$1,222/oz. Gold is now down 5.62% this year. The US dollar index fell slightly to 94.48 from 94.68. The van Eck managed GDXJ fell again to close down at US$32.09 from US$32.53 50 a week ago. The index is down 5.98% so far in 2018. The US Global Go Gold ETF also lost ground to close down at US$12.63 from US$12.76 a week ago. It is now down 2.92% so far in 2018. The HUI Arca Gold BUGS Index closed down at 172.02 from 173.52 last week. The sell-off in the SPDR GLD ETF finally came to an end with its inventory closing up at 798.13 tonnes from 795.19 tonnes a week ago.

In other commodities, silver closed down at US$15.51/oz from US$15.82/oz a week ago. Copper’s fall continues as it closed at US$2.75/lb from US$2.77/lb last week. Oil continued to weaken to close down at US$68.26 a barrel from US$71.01 a barrel a week ago.

The Dow Jones Industrial Average continued its winning streak to close up at 25,058 from 25,019 last week. Canada’s S&P/TSX Composite Index saw a slight fall to close down at 16,435 from 16,561 the previous week. The S&P/TSX Venture Composite Index also closed down at 712.33 from 725.24 last week.


·       Number of financings decreased to 20, a two-week low.

·       One brokered financings were announced this week for C$4.0m, a one-week low.

·       No bought-deal financing was announced this week, a five-week low.

·       Total dollars lowered to C$44.3m, a one-week low.

·       Average offer size lowered to C$2.2m, a one-week low.


Financing Highlights

Advantage Lithium (TSXV:AAL) announced a C$12.0 million private placement

·       15.6 million shares @ C$0.77

·       Proceeds to be used to fund continued development and exploration activities on its lithium properties in Argentina.

Lumina Gold (TSXV:LUM) announced a C$7.0 million non-brokered private placement.

·       Up to 9.7 million shares @ C$0.72, a 4.0% discount to the 20 day volume-weighted average price.

·       The net proceeds will be used to fund working capital for the spin-out of Luminex Resources and its properties in Ecuador.

·       Each share under the offering will become one new share of Lumina and 0.15 shares of Luminex.


 Major Financing Openings

·       Advantage Lithium (TSXV:AAL) opened a C$ 12 million offering on a best efforts basis.

·       Lumina Gold (TSXV:LUM) opened a C$ 7 million offering on a best efforts basis.    

·       Kutcho Copper (TSXV:KC) opened a C$ 4.01 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis. The deal is expected to close on or about August 9th.

Major Financing Closings

·       Orca Gold (TSXV:ORG) closed a C$ 21.85 million offering on a strategic deal basis.  Each unit included a warrant that expires in two months.

·       Adventus Zinc (TSXV:ADZN) closed a C$ 9.18 million offering on a strategic deal basis.    

·       Marathon Gold (TSX:MOZ) closed a C$ 5.02 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis.    

Company News

NuLegacy Gold (TSXV:NUG) closed the first tranche of its non-brokered private placement of 8.5 million units of the 15 million offered @ C$0.20 for gross proceeds of C$1.7 million.

·       Directors and officers purchased 3.4 million units for an aggregate C$680k.

·       It is anticipated that OceanaGold (TSX:OGC) will participate in the second tranche to maintain its ownership interest at 16.2%.

·       Each unit consists of one share and a warrant exercisable @ C$0.30 for two years.

·       The net proceeds will be used to fund further exploration of the Red Hill project in Nevada.



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