Oreninc Index Update: May 22, 2017

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ORENINC INDEX sees strong rebound as gold strengthens

 

ORENINC INDEX – Monday, May 22, 2017

North America’s leading junior mining finance data provider

 

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Last week index score: 40.84 (updated)

This week: 69.70

Kootenay Silver (TSXV: KTN) began a 7,500m drilling program at its La Cigarra silver project in the Parral mining district of Chihuahua, Mexico.

NuLegacy Gold (TSXV: NUG) is ramping up its 2017 drilling campaign at its Iceberg project in Nevada, USA.

The Oreninc Index climbed in the week ending May 18th, 2017 to 69.70 from 40.84 as gold continued to rebound.

Total raises announced increased to C$110.5 million, a two-week high, which included seven brokered financings for a total of C$64.5 million, a four-week low within which there were three bought-deal financings for C$34.0 million, a six-week high. The average offer size decreased to C$2.9 million, a four-week low, whilst the total number of financings announced increased to 38, a three-week high.

The gold price recovered part of the losses of the previous two weeks to close at US$1,253 as the US dollar had its worst week since April 2016, ceding much of its gains since Donald Trump became president. President Trump continues to be the centre of news that contributes to turbulent markets, such as his firing of FBI Director James Comey, who was investigating his alleged links with Russia, and then moderating his stance on the NAFTA free trade agreement, stating the he wants to renegotiate it rather than withdraw from it as he had said previously.

With the gold price recovering, the van Eck managed GDXJ returned to growth and is now up 3.36% so far in 2017. The inventory of the SPDR GLD ETF continued to fall and closed at 850.7 tonnes, down from 851.8 tonnes the previous week.

In other commodities, silver was up on the week to close at US$16.84 whilst copper returned to growth to close the week at US$2.58. Oil continued to strengthen as WTI crude broke through the US$50 per barrel mark to close at $50.3.

The Dow Jones Industrial Average experienced a 200-point fall mid-week but had a strong finish to recover some of the lost ground to close the week down at 20,804. Canada’s S&P/TSX Composite Index followed a similar pattern with a 300-point mid-week fall with a strong close to end the week down at 15,458. The S&P/TSX Venture Composite Index didn’t seem to be affected by such things and closed the week slightly up at 806.90.

Summary:

  • Number of financings jumped up to 38, a three-week high.
  • Seven brokered financings were announced for $64.5m, a four-week high.
  • Three bought-deal financings were announced for $34.0m, a six-week high.
  • Total dollars increased to $110.5m, a two-week high.
  • Average offer size decreased to $2.9m, a four-week low.

 

Financial news highlights

Falco Resources (TSX-V: FPC) opened a C$25 million offering on a bought deal basis @ C$1.29.

  • Underwritten by a syndicate led by BMO Capital Markets
  • Funds to advance the Horne 5 deposit in Quebec, Canada, including the dewatering program, refurbishing of the shaft and ordering of long-lead items.

Northern Empire Resources (TSXV: NM) opened a C$ =INT( 20,000,000.00 )/1000000 20 million offering on a best efforts basis.

  • Underwritten by a syndicate led by Cormark Securities.
  • Priced at C$0.25 per subscription receipt.
  • Expected to close on or about May 30th.
  • Proceeds will be used to acquire the Sterling property from Imperial Metals for US$10.1 million.

Major Financing Openings:

  • Falco Resources (TSX-V:FPC) opened a C$ =INT( 25,000,200.00 )/1000000 25 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. Each unit includes half a warrant that expires in 18 months. The deal is expected to close on or about June 7th.
  • Northern Empire Resources (TSX-V:NM) opened a C$20 million offering underwritten by a syndicate led by Cormark Securities on a best efforts basis. The deal is expected to close on or about May 30th.
  • Transatlantic Mining (TSX-V:TCO) opened a C$10 million offering on a best efforts basis. Each unit includes half a warrant that expires in 24 months. The deal is expected to close on or about June 14th.
  • Eastmain Resources (TSX:ER) opened a C$9.03 million offering underwritten by a syndicate led by Cormark Securities on a bought deal basis. The deal is expected to close on or about June 8th.

 

Major Financing Closings:

  • Continental Gold (TSX:CNL) closed a C$ =INT( 34,360,000.00 )/1000000 34.36 million offering on a strategic deal basis.  
  • Barkerville Gold Mines (TSX-V:BGM) closed a C$27.03 million offering underwritten by a syndicate led by Haywood Securities on a bought deal basis. Each unit includes half a warrant that expires in 18 months.  
  • Razor Energy (TSX-V:RZE) closed a C$17.75 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis. Each unit included half a warrant that expires in 12 months.  
  • Barkerville Gold Mines (TSX-V:BGM) closed a C$17.17 million offering on a best efforts basis.  

Company news

  • Kootenay Silver (TSXV: KTN) began a 7,500m drilling program at its La Cigarra silver project in the Parral mining district of Chihuahua, Mexico.Focus on the expansion of the La Cigarra mineral resource
  • Plan to update the resource before year end
  • Drilling testing satellite targets later this year

La Cigarra currently hosts a NI 43-101 measured and indicated mineral resource of 51.5Moz silver within 18.5Mt @ 86.3 g/t silver, and an inferred resource of 11.5Moz silver within 4.5Mt @ 80 g/t silver.

Conclusion

This drill program should add to and upgrade the La Cigarra mineral resources enabling the company to update its mineral resource estimate and set the groundwork to embark on a preliminary economic assessment. With producing silver mines located nearby and on trend, advancing the project should elicit interest from a producer for a JV or takeover.

NuLegacy Gold (TSXV: NUG)

Is ramping up its 2017 drilling campaign at its Iceberg project in Nevada, USA.

  • Three drill rigs operating on site as it seeks to add to the dimensions of its discoveries
  • Looking to define a big Carlin-style gold system
  • Iceberg is on trend from Barrick Gold’s (TSX: ABX) multi-million ounce Pipeline, Cortez and Goldrush gold mines.
  • A second RC rig and a diamond drill core rig have arrived on site and drill the first 12 of 24 holes planned to expand Iceberg.

Conclusion

NuLegacy has discovered the Iceberg and the Avocado Carlin-style gold deposits and has identified four more highly prospective exploration targets as it aims to find deposits with 90-110Mt tonnes of 0.9 to 1.1g/t of gold that could position it as a takeover target.

 

 

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