ORENINC INDEX - Monday, September 23rd 2019

North America’s leading junior mining finance data provider

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Oreninc was very busy at the recent Precious Metals Summit in Beaver Creek, Colorado.

Here are links to our INTERVIEWS:

With David Erfle of Junior Miner Junky

http://oreninc.com/orenthink/entry/interview-capital-markets-are-still-very-tight-david-erfle-precious-metals-summit-2019

“At the Bar with Brent Cook & Micky Fulp”

hosted by Kelly Earle and Special Guest Nicky Adshead-Bell

https://youtu.be/aLVJ94EX1Zs


Last Week: 55.75 (updated)

This week: 23.60

The Oreninc Index halved in the week ending September 20th, 2019 to 23.60 from an updated 55.75 as bought deals and brokered deals disappeared.

This week saw the North American precious metals world in Denver for the Denver Gold Forum.

Gold continues to hover around the US$1,500/oz mark as a correction appears underway with traders buying on the dips below this level.

The US Federal Reserve made a widely-expected 0.25% interest rate cut this past week to set rates in the 1.75% to 2% range but comments by FED-Chair Jerome Powell provided little clarity about the future direction he would look to take, which provoked another Tweet storm by US president Donald Trump that he was not being aggressive enough. "No 'guts,' no sense, no vision!" wrote the president.

But it looks like quantitative easing could be on its way back as the New York Federal Reserve Bank made $75bn available Wednesday for the repo sector, which is where banks and investors borrow cash overnight using treasuries as collateral, promoting a sharp increase in overnight interest rates from 2.25% to up to 10%, signalling the financial system does not have enough cash on hand. The assumption is that the US Federal Reserve will have to resume buying more treasury debt.

While the junior mining sector attracts its fair share of unscrupulous people, it pales in comparison to the big boys of the banking world as the trial of the British bankers behind the €60 billion cum-ex tax fraud scandal begins. “A group of cowboy traders, seasoned tax lawyers and mathematical whizz kids who are alleged to have conspired in the heart of the City of London to siphon at least €60bn in taxpayers’ money from the state coffers of several EU countries,” with the defendants claiming what they were doing was a widespread practice among banks at the start of the century, as The Guardian reported it.

Dovish language is coming out of the Middle East in the wake of the recent drone and cruise missile attack on Aramco’s Abqaiq oil facility in Saudi Arabia with the growing recognition that these elaborate “toys” have rendered obsolete billions of dollars spent on US warplanes and missile defense systems. The UK Guardian newspaper reported this as the “end to era of fast jet air supremacy”. Saudi Arabia has softened its rhetoric towards Iran and the US said it would not go to war over the attack, although taking the lesser step of unlocking its oil reserves for the first time in many years.

In Europe, the pound rebounded after European Commission president Jean-Claude Juncker said he believes a deal for the UK to leave the European Union is possible before the end of October, but the absence of viable proposals continues as the UK Supreme Court will soon rule on whether prime minister Boris Johnson’s decision to shut down Parliament was unlawful or not.

And millions have taken to the streets ahead of the forthcoming United Nations meeting to demand leaders do something about climate change.

On to the money: total fund raises announced fell to $47.4 million, a three-week low, which included no brokered financings and no bought-deal financings. The average offer size increased however to $2.6 million, a four-week high, while the number of financings fell to 18.

Another bumpy week for gold as it continued to toy with the US$1,500/oz level before closing strongly to end the week up at $1,516/oz from $1,488/oz a week ago. The yellow metal is up 18.28% so far this year. The US dollar index strengthened as it closed up at 98.51 from 98.25 last week. The VanEck managed GDXJ also ended the week with strength as it closed up at US$39.24 from $36.26 a week ago. The index is now up 29.85% so far in 2019. The US Global Go Gold ETF closed up at US$16.37 from $15.62 a week ago. It is up 43.47% so far in 2019. The HUI Arca Gold BUGS Index closed up at 218.23 from 204.14 last week. The SPDR GLD ETF saw its inventory increase strongly to 894.15 tonnes from 874.51 tonnes a week ago.

In other commodities, silver regained some of the prior week’s loses as it closed up at US$17.99/oz from $17.44/oz a week ago. Copper’s recovery faltered as it closed down at US$2.60/lb from $2.69/lb a week ago. With the fun and games continuing in the Persian Gulf, Oil continued to rebound as WTI closed up at US$58.09 a barrel from $54.85 a barrel a week ago.

The rebound in the Dow Jones Industrial Average faltered as it closed down at 26,935 from 27,219 a week ago. Canada’s S&P/TSX Composite Index closed up at 16,899 from 16,682 the previous week. The S&P/TSX Venture Composite Index closed up slightly at 590.45 from 589.16 last week.

Summary

● Number of financings decreased to 18.

● No brokered financings announced, a three-week low.

● No bought-deal financings were announced, a three-week low.

● Total dollars diminished to $47.4m, a three-week low.

● Average offer increased to $2.6m, a four-week high.


Financing Highlights

Para Resources (TSXV:PBR) arranged a non-brokered private placement for up to $10.0 million.

• Each unit is comprised of one share and one warrant exercisable @ $0.15 for two years.

• Proceeds will be used for general corporate and working capital purposes and work related to the company’s projects.


Major Financing Openings

● Para Resources (TSXV:PBR) opened a $10.0 million offering on a best efforts basis. Each unit includes a warrant that expires in two years.

HighGold Mining (TSXV:HIGH) opened a $7.65 million offering on a best efforts basis. Each unit includes half a warrant that expires in two years.

Nulegacy Gold (TSXV:NUG) opened a $7.5 million offering on a best efforts basis. Each unit includes half a warrant that expires in three years.

Westhaven Ventures (TSXV:WHN) opened a $7.35 million offering on a best efforts basis. Each unit includes a warrant that expires in two years.


Major Financing Closings

● Gabriel Resources (TSXV:GBU) closed a $26.4 million offering on a best efforts basis. Each unit included a warrant that expires in five years.

● HighGold Mining (TSXV:HIGH) closed a $7.65 million offering on a best efforts basis. Each unit included half a warrant that expires in two years.

Unigold (TSXV:UGD) closed a $3.25 million offering on a best efforts basis. Each unit included half a warrant that expires in two years.

Plateau Energy Metals (TSXV:PLU) closed a $1.5 million offering on a best efforts basis. Each unit included half a 2 warrant that expires in two years.


Company News

Silver Spruce Resources (TSXV:SSE) received approval of its environmental application for drilling its Cocula gold project in Jalisco, Mexico.

• The permit allows for 47 drill sites over the 750m strike length of the known mineralized area.

• The company is preparing a drilling strategy to evaluate the current mineralisation and new exploration targets identified during geological mapping.


Analysis

With the drill permit in place, Silver Spruce is advancing towards taking a decision to earn a 100% interest in the project.