Oreninc Index – Monday, July 17, 2017

Last week index score: 39.94

This week: 30.12

The Oreninc Index fell in the week ending July 13th, 2017 to 30.12 from 39.94 the previous week with many small dollar openings and some big bought deals closed.

Total fund raises announced was C$42.5 million, a 27-week low and the lowest since the Christmas and New Year period. This included no brokered financings, a 28-week low and no bought-deal financings. The average offer size fell to C$1.6 million, a 27-week low, whilst the total number of financings announced increased to 26, a two-week high.

Gold posted a positive week with spot gold closing at US$1,228 per ounce, up from US$1,212 the previous week amid growing concerns about possible connections between US president Donald Trump and Russia.

The positive movement in the gold price was reflected in the van Eck managed GDXJ which also had a positive week and is now up 2.7% so far in 2017. The inventory of the SPDR GLD ETF however, saw selling and closed the week down at 829 tonnes from 835 tonnes the previous week.

In other commodities, the silver spot price returned to growth to almost break the US$16/oz level, closing at US$15.99/oz from US$15.61/oz the previous week. The Comex copper price also showed growth to close at US$2.69 per pound from US$2.64 the previous week. Oil returned to growth too to close at US$46.54 per barrel down from US$44.23 last week.

The Dow Jones Industrial Average returned to record levels closing at 21,637 from 21,414 the previous week, whilst Canada’s S&P/TSX Composite Index, also improved to close at 15,174 from 15,027 the previous week. The S&P/TSX Venture Composite Index returned to growth to close up slightly at 757.55 from 755.22 the previous week.

Summary:

• Number of financings increased to 26, a two-week high.
• No brokered financings were announced this week, a 28-week low.
• No bought-deal financings were announced this week, a six-week low.
• Total dollars dropped to C$42.5m, a 27-week low.
• Average offer size also fell to C$1.6m, a 27-week low.

Peregrine Diamonds (TSX:PGD) Peregrine Diamonds announced a C$10.28 million rights offering.

• Each three and three-tenths rights will entitle the holder to purchase one share @ C$0.10
• The proceeds will be used to complete the remainder of the 2017 Chidliak diamond resource expansion program that focuses on expansion of the current inferred resource through 7,500m of diamond core drilling.

Major Financing Openings:

• Peregrine Diamonds (TSX:PGD) opened a C$10.28 million offering on a best efforts basis.
• Corvus Gold (TSX:KOR) opened a C$4.65 million offering on a strategic deal basis.
• Petro-Victory Energy (TSX-V:VRY) opened a C$4 million offering on a best efforts basis.
• Algold Resources (TSX-V:ALG) opened a C$3.72 million offering on a strategic deal basis. Each unit includes half a warrant that expires in 18 months. The deal is expected to close on or about July 28th.

Major Financing Closings:

• Newcastle Gold (TSX-V:NCA) closed a C$15.01 million offering underwritten by a syndicate led by Beacon Securities on a bought deal basis.
• Orca Gold (TSX-V:ORG) closed a C$14.26 million offering on a best efforts basis. Each unit included half a warrant that expires in 12 months.
• Cordoba Minerals (TSX-V:CDB) closed a C$10 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. Each unit included half a warrant that expires in 24 months.
• Kerr Mines (TSX:KER) closed an C$8 million offering on a best efforts basis.

Company news

Avrupa Minerals (AVU: TSXV) closed a private placement to raise C$1.0 million by issuing 10.2 million units @C$0.10. Each unit comprised one share and one warrant exercisable @ C$0.15 for three years.

• Avrupa now has 86.9 million shares outstanding.

Castle Silver Resources (TSX.V: CSR) began an aggressive 2017 diamond drilling program at its Castle cobalt-silver property near Gowganda, Ontario. Castle also closed a non‐brokered private placement to raise gross proceeds of C$882,500.

• Phase I drilling will consist of 1,500m and will focus on potential extensions to significant vein structures identified on the first level of the mine.
• The Company issued 4.4 million units @ C$0.20. Each unit comprised one share and one warrant exercisable @ C$0.30 for two years.
• Proceeds will be used for ongoing programs at the Castle and Beaver properties, past producing silver‐cobalt mines.

Analysis

The financing will enable Castle Silver to begin to prove the cobalt potential of the historical Caste Silver mine district at a time when cobalt is experiencing increasing demand due to its use in the growing battery market.