Oreninc Index update: October 23rd, 2017

Last week index score: 64.72 (Updated)

This week: 46.08

 

LiCo Energy Metals (TSXV: LIC) completed ten holes for 775m at its Teledyne and Glencore Bucke cobalt properties in Ontario, Canada testing the Main and Northwest zones on the Glencore Bucke property.

 

The Oreninc Index fell in the week ending October 20th, 2017 to 46.08 from an updated 64.72 the previous week as financings slid back to their recent torpor.

The US dollar continued to strengthen, which was bad news for the precious metals, after President Donald Trump completed the first step toward passing his tax as the Senate voted 51-49 to pass the fiscal 2018 budget. Confidence in US stocks continued to rocket ahead as the Dowploughed ahead into more new ground beyond the 23,000 level. Talking of rockets, the US CIA intelligence agency said North Korea is probably just months away of being able to launch a nuclear attack on the mainland US.

Total fund raises announced fell sharply to C$45.5 million, a two-week low, which included three brokered financing for C$22.5 million, a two-week low, and two bought-deal financings for C$15.0 million, also a two-week low. The average offer size crashed to C$1.5 million, a three-week low, whilst the total number of financings announced grew to 26, a three-week high.

The gold price saw a week of losing ground to fall back under the US$1,300/oz level and close at US$1,280/oz from US$1,303/oz the previous week. Gold is now up 11.6% since the start of the year. The van Eck managed GDXJ also fell and is now up 5.5% so far in 2017 to close the week at US$33.27. The US Global Go Gold ETF fell sharply to close at US$12.50 from US$13.04 last week. The SPDR GLD ETF saw inventories remain at 853 tonnes this week.

In other commodities, silver continued above US$17/oz although it slid during the week to close at US$17.3 from US$17.42/oz a week ago. Copper saw another strong week, extending recent gains to finish the week at US$3.16/lb from US$3.13/lb a week ago whilst zinc slide below US$1.50/lb to close at US$1.44/lb. The strong US dollar also saw oil consolidate recent gains as it closed the week at US$51.84 per barrel from US$51.42 a barrel a week ago.

The Dow Jones Industrial Average again smashed through the record set the previous week to break through 23,000 for the first time ever as it closed at 23,328 from 22,871 last week. Canada’s S&P/TSX Composite Index posted a similar growth chart and closed up at 15,857 from 15,807 the previous week. The S&P/TSX Venture Composite Index gave back some of last week’s gains to close at 789.51 from 797.44 the previous week.

 

Summary:

  • Number of financings grew to 26, a three-week high.
  • Three brokered financings were announced this week for C$22.5m, a two-week low.
  • Two bought-deal financings were announced this week for C$15.0, a two-week low.
  • Total dollars fell to C$45.5m, a two-week low.
  • Average offer size also fell to C$1.5m, a three-week low.

 

 

Financing Highlights

 

Excellon Resources (TSX:EXN) opened a C$10 million offering @ C$2 underwritten by a syndicate led by Cantor Fitzgerald Canada on a bought deal basis.

  • The offer was subsequently increased to C$13.25 million
  • Each unit includes half a warrant exercisable @ C$2.80 for 24 months.
  • The net proceeds will fund exploration at the Platosa project in Durango and Miguel Auza project in Zacatecas, Mexico.
  • The deal is expected to close on or about November 9th.

 

Major Financing Openings:

  • Garibaldi Resources (TSXV:GGI) opened a C$10 million offering on a best efforts basis. Each unit includes a warrant that expires in 24 months.
  • Excellon Resources (TSX:EXN) opened a C$10 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada on a bought deal basis. Each unit includes half a warrant that expires in 24 months. The deal is expected to close on or about November 9th.
  • Dawson Gold (TSXV:DYU) opened a C$7.5 million offering underwritten by a syndicate led by Emerging Equities on a best effortsbasis.
  • US Cobalt (TSXV:USCO) opened a C$5 million offering underwritten by a syndicate led by Eight Capital 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 November 8th.

Major Financing Closings:

  • Revival Gold (TSXV:RVG) closed a C$9.6 million offering underwritten by a syndicate led by PI Financial on a best efforts basis. Each unit included half a warrant that expires in 24 months.
  • Prophecy Development (TSX:PCY) closed a C$6.4 million offering on a best efforts basis. Each unit included half a warrant that expires in 36 months.
  • Skeena Resources (TSXV:SKE) closed a C$6 million offering on a strategic deal basis. Each unit included half a warrant that expires in 24 months.
  • Silver One Resources (TSXV:SVE) closed a C$4.3 million offering on a best efforts basis.

 

Company news

LiCo Energy Metals (TSXV: LIC) completed ten holes for 775m at its Teledyne and Glencore Bucke cobalt properties in Ontario, Canada testing the Main and Northwest zones on the Glencore Bucke property.

  • Cobalt camp style mineralization has visually been noted in every drill hole
  • The Main Zone, is currently 152m long, and the Northwest Zone is 70m long.
  • LiCo is adding additional meterage to the diamond drilling programs with a second rig due imminently. The current drill rig will remain drilling on Glencore Bucke, while the second drill rig will test targets on Teledyne.

Analysis

Increasing the drilling program will accelerate the geological understanding on both properties and generate additional news flow.

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