Oreninc Index – Monday, August 14th, 2017

Last week index score: 61.18

This week: 46.26

NuLegacy Gold (TSXV: NUG) commenced follow-up drilling to extend the gold mineralization discovered at North Iceberg.

The Oreninc Index fell in the week ending August 11th, 2017 to 46.26 from 61.18 the previous week with the markets very quiet as vacation season is in full swing and a public holiday to boot.

Total fund raises announced fell to C$36.6 million, a three-week low, which included four brokered financings for C$20.6 million, a two-week low, and no bought-deal financings. The average offer size remained at C$1.9 million, whilst the total number of financings announced fell to just 19, a five-week low.

US foreign policy dominated news headlines this week with US president Donald Trump exchanging bellicose rhetoric with his North Korean counterpart Kim Jong-Un about who could beat who the hardest, with residents of the Pacific island and US territory of Guam somehow getting into the crosshairs of Kim’s missiles.

Gold continued to strengthen to close at US$1,289/oz, inching towards the US$1,300/oz level that it has not since seen since November of 2016, and up from US$1,258/oz the previous week.

The increasing gold price was reflected in the van Eck managed GDXJ which is now up 6.6% so far in 2017 at US$33.63. The recently launched US Global Go Gold ETF also posted gains to close at US$12.40 from US$12.00 last week, whilst the inventory of the SPDR GLD ETF slid a little to close the week a smidge under 787 tonnes from a smidge over 787 tonnes the previous week.

In other commodities, silver reflected gold’s rise to break through US$17/oz again and almost added a dollar to close at US$17.11/oz from US$16.27/oz the previous week. The Comex copper price continues to inch up towards the US$3/lb level to close slightly up at US$2.91/lb up from US$2.88/lb the previous week. Oil gave back some of its recent gains to close slightly down at US$48.82 per barrel from US$49.58 last week.

The sky seems to be the limit for the Dow Jones Industrial Average hit a high of 22,118 early in the week then softened to close at 21,858 from 22,092 the previous week. Canada’s S&P/TSX Composite Index saw a steady week and then a drop off in the latter half to close down at 15,033 from 15,257 the previous week. The S&P/TSX Venture Composite Index increased to close at 762.81 from 765.68 the previous week.

Summary:

  • Number of financings fell to 19, a 5-week low.
  • Four brokered financings were announced this week for $20.6m, a 2-week low.
  • No bought-deal financings were announced this week, a ten-week low.
  • Total dollars decreased to $36.6m, a 3-week low.
  • Average offer size stayed the same at $1.9m, a 3-week high.

 

Financial news highlights

Nouveau Monde Graphite (TSXV: NOU) announced a private placement to raise C$10 million for working capital as it evaluates its Matawinie graphite project in Quebec, Canada.

  • Matawinie has a PEA that outlined an after-tax NPV of C$237.0 million at an 8% discount rate and after-tax IRR of 24.7% with a 25.7 years life of mine an capex of C$144.5 million.

Major Financing Openings:

  • Nouveau Monde Mining Enterprises (TSXV: NOU) opened a C$10 million offering underwritten by a syndicate led by Eight Capital on a best efforts Each unit includes half a warrant that expires in 24 months. The deal is expected to close on or about September 8th.
  • Colorado Resources (TSXV: CXO) opened a C$24 million offering underwritten by a syndicate led by PearTree Securities on a best efforts basis. Each unit includes half a warrant that expires in 30 months. The deal is expected to close on or about August 31st.
  • North American Nickel (TSXV: NAN) opened a C$07 million offering on a best efforts basis. Each unit includes half a warrant that expires in 24 months.
  • Sable Resources (TSX: SAE.H) opened a C$3 million offering underwritten by a syndicate led by Haywood Securities on a best efforts Each unit includes a warrant that expires in 24 months. The deal is expected to close on or about September 6th.

Major Financing Closings:

  • Wellgreen Platinum (TSXV: WG) closed a C$53 million offering on a best efforts basis. Each unit included half a warrant that expires in 60 months.
  • Japan Gold (TSXV: JG) closed a C$5 million offering on a strategic deal Each unit included a warrant that expires in 60 months.
  • Kincora Copper (TSXV: KCC) closed a C$52 million offering on a best efforts basis. Each unit included half a warrant that expires in 24 months.
  • Wilton Resources (TSXV: WIL) closed a C$4 million offering on a best efforts

 

Company news

NuLegacy Gold (TSXV: NUG) commenced follow-up drilling to extend the gold mineralization discovered at North Iceberg.

  • This prospective 375m west of the North Iceberg gold deposit, has been named the Serena zone.
  • Three holes will test extensions of the 50.3m @ 1.0 g/t gold discovery hole
  • Discovery hole SR17-01 encountered 123m of strongly brecciated jasperoid hosted in the Devonian Horse Canyon formation (an important host for gold in Carlin-type deposits in the Cortez gold-trend) starting at 133m deep.

Analysis

NuLegacy has completed this summer's program of wildcat drilling of geophysical and/or geochemical targets throughout its Red Hill property and whilst results are pending, it is taking the opportunity to further probe the recently discovered Serena zone prior to further defining and expanding the gold content of the Iceberg gold deposits this fall.