Oreninc Index Update: October 9th, 2017

Last week index score: 31.64 (Updated)

This week: 28.24

 

Prospero Silver (TSXV: PSL) received final TSX Venture Exchange approval of the option to own agreement with and Exploraciones del Altiplano.

Avrupa Minerals (TSXV: AVU) provided an exploration update on its properties in Portugal and Kosovo.

Zinc One Resources (TSXV:Z) entered into an investor relations agreement with Monica Hamm, an investor relations professional with more than 20 years’ experience.

 

The Oreninc Index fell in the week ending October 6th, 2017 to 28.24 from a updated 31.64 the previous week.

Total fund raises announced increased slightly to C$37.0 million, a two-week high, which included one brokered financing for C$2.0 million, a two-week high, and no bought-deal financings. The average offer size increased to C$1.6 million, a two-week high, whilst the total number of financings announced fell to 23, a six-week low.

The gold price had another weak week and it continued its downward trend, although rebounding a tad at the end of the week to close at US$1,276/oz from US$1,279/oz the previous week. Gold is now up 11.3% since the start of the year. The van Eck managed GDXJ in contrast, was stable through most of the week and posted growth at the end and is now up 9.4% so far in 2017 to close the week at US$34.59. The recently launched US Global Go Gold ETF saw its first quarterly rebalance since its launch had a similar week to the GDXJ close at US$12.89 from US$12.66 last week. The SPDR GLD ETF saw some selling activity and inventories closed down at 854 tonnes from 864 tonnes the previous week.

In other commodities, silver remained below US$17/oz but closed the week with positive momentum to close at US$18.83/oz from US$16.65/oz a week ago. Copper saw a burst of growth and finished the week above the US$3/lb mark again to close at US$3.02/lb from US$2.95/lb a week ago. With metals prices showing signs of growth again, oil slid below the US$50 per barrel mark and with WTI closing at US$49.29 a barrel from US$51.57 last week.

The Dow Jones Industrial Average continued to set records and had a strong week to close at 22,773 from 22,405 last week. Canada’s S&P/TSX Composite Index also saw a strong week of growth and closed up at 15,728 from 15,634 the previous week. The S&P/TSX Venture Composite Index also saw growth to close at 788.32 from 781.23 the previous week.

 

Summary:

  • Number of financings decreased to 23, a six-week low.
  • One brokered financing was announced this week for C$2.0m, a two-week high.
  • No bought-deal financings were announced this week, a three-week low.
  • Total dollars grew to C$37.0m, a two-week high.
  • Average offer size increased to C$1.6m, a two-week high.

 

 Financing Highlights

 

East Africa Metals (TSXV:EAM) opened a C$13.55 million offering on a strategic deal basis. Each unit includes half a warrant that expires in 24 months.

  • Part of a financing package with Luck Winner Investment that also includes project development financing of up to US$250 million and an unsecured loan of C$2.0 million.
  • The private placement is for 52.1 million units @ C$0.26.
  • The financings are to develop East Africa’s gold projects in Ethiopia.

 

Major Financing Openings:

  • East Africa Metals (TSXV:EAM) opened a C$13.55 million offering on a strategic deal basis. Each unit includes half a warrant that expires in 24 months.
  • Traverse Energy (TSXV:TVL) opened a C$3.5 million offering on a best efforts basis.
  • Metallis Resources (TSXV:MTS) opened a C$2.2 million offering on a strategic deal basis.  Each unit includes half a warrant that expires in 24 months.
  • Balmoral Resources (TSX:BAR) opened a C$2 million offering on a best efforts basis. The deal is expected to close on or about October 10th.

Major Financing Closings:

  • Osisko Mining (TSX:OSK) closed a C$92.36 million offering underwritten by a syndicate led by Canaccord Genuity on a bought dealbasis.
  • Atlantic Gold (TSXV:AGB) closed a C$11 million offering underwritten by a syndicate led by Canaccord Genuity on a bought dealbasis.
  • QMX Gold (TSXV:QMX) closed a C$6.41 million offering underwritten by a syndicate led by Mackie Research Capital on a bought deal basis.
  • Barksdale Capital (TSXV:BRO) closed a C$5.41 million offering on a best efforts basis.

 

Company news

Prospero Silver (TSXV: PSL) received final TSX Venture Exchange approval of the option to own agreement with and Exploraciones del Altiplano.

  • The agreement provides Prospero with an option to earn a 100% right, title and interest in and to Altiplano's Buenavista claims in Durango, Mexico, subject to the reservation by Altiplano of a 2% NSR.
  • A Prospero director owns or controls, indirectly over 20% of the issued shares of Altiplano.

Analysis

Prospero aims to discover world-class precious metal projects in the major mineral belts of Mexico and so adding to its exploration land package is part of its strategy as doing so enables the company to identify more exploration targets.

 

Avrupa Minerals (TSXV: AVU) provided an exploration update on its properties in Portugal and Kosovo.

  • In Portugal, Avrupa’s updated study of newly-available information shows that the Alvalade project holds a significant brownfields/development target in the Caveira-Lousal-Sesmarias district. Historical reports suggest that up to 30Mt of copper-zinc-iron-bearing massive sulphide material remain in the ground at the Lousal mine and the company has identified greenfields exploration targets along the entire 20km trend. Avrupa is actively looking for a joint venture partner to further advance the Alvalade opportunity.
  • At the Alvito copper-gold project that OZ Minerals is funding, ground geophysical surveys are nearly completed whilst geological mapping continues, and through which Avrupa has discovered new copper targets. Plans for 1,500-2,000m drilling program are underway for a mid-October start-up
  • At the Covas tungsten JV with Blackheath Resources, plans are underway for a drill test of a bulk tonnage tungsten target with a single hole, deep test of a coincident geophysical and geochemical anomaly is planned for the fourth quarter.
  • In Kosovo, a drilling program was completed at the Slivovo gold project including 17 holes and 6,176m. The updated geological model shows that the structure is more complicated than previously interpreted, but leaves room and targets for future drilling.

Analysis

Project generator Avrupa continues to successfully work up and advance its multiple properties in Europe as well as bringing forward new properties to a JV-ready state with considerable news flow potential going forward.

 

Zinc One Resources (TSXV:Z) entered into an investor relations agreement with Monica Hamm, an investor relations professional with more than 20 years’ experience.

  • A one year that may be extended by agreement of the parties.

Analysis

The appointment of Hamm should see increased investor relations-related activity by the company and result in a broader-based communication of its story that may ultimately result in greater investor appetite for its stock.