ORENINC INDEX falls below 100 as gold falters
ORENINC INDEX – Monday, March 6, 2017
North America’s leading junior mining finance data provider
NuLegacy Gold Corp. (TSXV: NUG): Provided guidance on its 2017 exploration and corporate programs.
Last week index score: 107.24
This week: 93.45
The Oreninc Index retrenched in the week ending March 2, 2017 to 93.45 from 107.24 the previous week as gold pulled back from $1,249 USD per ounce the previous week to $1,234 USD.
Total fund raising dollars announced rose to C$285.5m from C$175.3m, a seven-week high, which included nine brokered financings for a total of C$9.3m within which were one bought-deal financings for C$0.4m. However, the average offer size almost doubled to C$6.5m from $3.5m, whilst the total number of financings announced pulled back further to 44, a four-week low.
Whilst the gold price had a strong week, the industry’s leading benchmark index, the van Eck managed GDXJ pulled back sharply and is now just 12.61% so far in 2017. However, the SPDR GLD ETF gold inventory grew slightly to 845.32 tonnes, its highest volume since December 15, 2016.
The copper price remained firm to close at $2.71 per pound despite the strike at Escondida, the world’s largest copper mine, completing 23 days. Escondida produces about 1.1 million tonnes a year of copper, some 5% of the world’s copper production.
The Dow Jones Industrial Average continued to plough ahead in record territory, breaking through the 21,000-mark reaching a mid-week peak of 21,155 and closing at 21,005. The S&P/TSX Composite Index had an even week closing at 15,536.
The past week saw Canadian bank BMO host its Metals and Mining event where major miners and advanced exploration company went speed dating with fund managers, and now the behemoth PDAC conference gets underway in Toronto on Sunday March 5 that will bring together tens of thousands of people from the juniors, mid tiers and majors, finance people and suppliers.
Financial news highlights
Royalty company Altius Minerals Corp (TSX:ALS) linbed up additional cash with which to make deals after entering into a letter agreement with Fairfax Financial Holdings Ltd under which Fairfax will make an up to C$100 million private placement investment for 5% preferred securities issuable in tranches of not less than C$25 million by no later than December 31, 2017. The proceeds will be used for investing in opportunities it identifies within the mining and minerals sector and for general corporate purposes.
Leagold Mining Corp (TSX-V:LMC.H) had a big week from a finance point of view. It executed a non-binding term sheet with Orion Resources Partners to provide US$200 million in cash through a senior secured five-year loan facility for US$150 million and an equity private placement of US$50 million after receiving strong interest in an equity component rather than doing a US$200 million debt financing. A previously announced subscription receipt offering is now expected to raise gross proceeds of C$175 million. The proceeds will be used to finance the acquisition of the Los Filos Mine.
- Number of financings lowered to 44, a four-week low
- Nine brokered financings were announced for $9.3m, a four-week low.
- One bought-deal financings were announced for $0.4m, an eight-week low.
- Total dollars rose to $285.5m, a seven-week high.
- Average offer size almost doubled to $6.5m, a five-week high.
Major Financing Openings:
- Altius Minerals Corp. (TSX:ALS) opened a $100 million offering on a strategic deal basis. Each unit includes 1 warrant that expires in 60 months.
- Blackbird Energy (TSX-V:BBI) opened a $80 million offering underwritten by a syndicate led by Cormark Securities Inc. on a best efforts basis. The deal is expected to close on or about March 22, 2017.
- Leagold Mining Corp (TSX-V:LMC.H) opened a $50 million offering on a strategic deal basis.
- Knick Exploration Inc. (TSX-V:KNX) opened a $10.15 million offering on a best efforts basis. The deal is expected to close on or about March 15, 2017.
Major Financing Closings:
- Osisko Mining Inc. (TSX:OSK) closed a $82.2 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.
- INV Metals Inc. (TSX:INV) closed a $27.6 million offering underwritten by a syndicate led by GMP Securities LP on a bought deal basis.
- Serinus Energy Inc. (TSX:SEN) closed a $25.2 million offering underwritten by a syndicate led by GMP FirstEnergy on a best efforts basis.
- JDL Gold Corp. (TSX-V:JDL) closed a $20 million offering underwritten by a syndicate led by Haywood Securities Inc. on a bought deal basis.
NuLegacy Gold Corp (TSXV: NUG) C$0.26, Mkt Cap C$77.6 million
- Provided guidance on its 2017 exploration and corporate programs.
Initial 2017 drilling will consist of 38 to 40 holes totalling about 10,500m focused on determining the extent of the gold mineralization in the Avocado deposit, exploring the Deep Iceberg, VIO and Jasperoid Basin anomalies, and expanding the established near-surface Iceberg deposits.
65% will consist of deeper drilling to explore for additional deposits and 35% will concentrate on expanding the gold footprint of Iceberg’s near-surface deposits.
Further geophysical and geochemical surveys will be completed in areas identified prospective for mineralization by 2016 geologic mapping and survey programs to generate additional drill targets.
Once new deposits have been confirmed/discovered, budget approvals will be sought for immediate drilling program expansion.
NuLegacy Gold is an advanced stage Nevada exploration company focused on expanding its Carlin-style near-surface Iceberg oxide gold deposit. It is focused on establishing a multi-million ounce near-surface oxide gold resource at Iceberg that grades 0.9 g/t to 1.1 g/t Au during the 2017-2018 drilling seasons and expanding the gold endowment size of the recently discovered Avocado gold deposit;
Conclusion: NuLegacy has an aggressive exploration plan to advance its aim of selling or merging with a qualified producer.