ORENINC INDEX – Monday, October 16th, 2017

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Last week index score: 30.76 (Updated)

This week: 61.98

NuLegacy Gold (TSXV:NUG) commenced a fourteen-hole 16,000 feet reverse circulation and core drilling program to follow up on the successes of its 30-hole (~27,000 ft.) summer program.

Oreninc Mining Deal Club

Before we dive into this weeks’ numbers, we are excited to tell you about the Oreninc Mining Deal Club. Our new subscription service gives its members (you have to be an accredited investor) the ability to participate in selected high quality private placement financings in the junior resource space. Our expert panel, consisting of Brent Cook, Tim Oliver, Paul Harris and Kai Hoffmann, thoroughly vets every opportunity before it is presented to the OMDC members. In addition, we also prepare a fact sheet with input from all expert panel members. Members have received their first deal alert this past Thursday. We are expecting to present members with the next opportunity by mid next week. Sign up now at www.miningdealclub.com and don’t miss the next opportunity.

Oreninc Index

The Oreninc Index jumped in the week ending October 13th, 2017 to 61.98 from an updated 30.76 the previous week as a couple of large strategic deals opened.

Total fund raises announced almost quadrupled to C$149.6 million, a five-week high, which included six brokered financings for C$51.2 million, a five-week high, and four bought-deal financings for C$25.0 million, also a five-week high. The average offer size shot up to C$7.5 million, a 39-week high, whilst the total number of financings announced fell to 20, a seven-week low.

The gold price bounced back from recent weakness with a strong week to break back over the US$1,300/oz level and close at US$1,303/oz from US$1,276/oz the previous week. Gold is now up 13.6% since the start of the year. The van Eck managed GDXJ in contrast, had a volatile flat week and is now up 9.7% so far in 2017 to close the week at US$34.62. The US Global Go Gold ETF saw a week of growth following its first quarterly rebalance to close at US$13.04 from US$12.89 last week. The SPDR GLD ETF saw inventories close down at 853 tonnes from 854 tonnes the previous week.

In other commodities, silver continued above US$17/oz and saw strong growth to close at US$17.42/oz from US$16.83/oz a week ago. Copper continued its growth spurt and finished the week at US$3.13/lb from US$3.02/lb a week ago and zinc continued its upward trend and closed the week at US$3,250/t (US$1.51/lb) on the back of strong demand for base metals from China. Metals prices are showing signs of growth again and oil is not being left behind as WTI closing the week at US$51.42 a barrel from US$49.29 a week ago upon expectations from OPEC that the global oil glut will be cleared by 3Q18.

The Dow Jones Industrial Average continued to set records with yet another week of growth that saw it close at 22,871 from 22,773 last week. Canada’s S&P/TSX Composite Index posted a similar growth chart and closed up at 15,807 from 15,728 the previous week. The S&P/TSX Venture Composite Index also saw growth to close at 797.44 from 788.32 from the previous week.

This week also saw the Oreninc team record another podcast with the Mercenary Geologist Micky Fulp that focused on the increase in base metals prices and the jump in activity in the lithium space. We have also looked at the increasing attractiveness of projects in the US because of deregulation.

Summary:

• Number of financings fell to 20, a seven-week low.
• Six brokered financings were announced this week for C$51.2m, a five-week high.
• Four bought-deal financings were announced this week for C$25.0, a five-week high.
• Total dollars increased to C$149.6m, a five-week high.
• Average offer size shot up to C$7.5m, a 39-week high.

Financing Highlights

Dalradian Resources (TSX:DNA) opened a C$78.25 million offering on a strategic deal basis with Orion Mine Finance and Osisko Gold Royalties.

• Orion will invest C$50 million and Osisko C$28.25 million via a non-brokered private placement at C$1.47 per share, a 7% premium to the closing price of the prior trading day.
• Osisko also plans to exercise 6.25 million warrants at C$1.04 to bring total funding to C$84.75 million.
• The proceeds will be used for general working capital purposes.
• Upon closing, Orion will own about 9.75% of Dalradian and Osisko 9.1%.
• The deal means Dalradian is well-funded to move its Curraghinalt gold project in Northern Ireland through permitting.

Integra Resources (CSE:ITR) opened a C$25.08 million offering underwritten by a syndicate led by GMP Securities on a best efforts basis.

• Issuance of 29.5 million subscription receipts @ C$0.85
• Gross proceeds to be deposited in escrow to pay for the acquisition of the DeLamar gold property in Idaho, USA from Kinross Gold.
• A significant portion of the proceeds will fund a 20,000m (predominantly RC) drill program to commence in 1Q18, aimed targeting gold-silver mineralization on extension from previous drill intercepts.
• Integra Resources founded by management team of Integra Gold that was recently sold for C$590 million.

Major Financing Openings:

• Dalradian Resources (TSX:DNA) opened a C$25 million offering on a strategic deal basis. The deal is expected to close on or about November 30th.
• Integra Resources (CSE:ITR) opened a C$08 million offering underwritten by a syndicate led by GMP Securities on a best efforts basis. The deal is expected to close on or about October 30th.
• Lithium X Energy (TSXV:LIX) opened a C$02 million offering underwritten by a syndicate led by Cormark Securities on a bought deal basis. Each unit includes half a warrant that expires in 36 months.
• Kelt Exploration (TSX:KEL) opened a C$85 million offering on a best efforts basis. The deal is expected to close on or about October 27th.

Major Financing Closings:

• Encanto Potash (TSXV:EPO) closed a C$100 million offering underwritten by a syndicate led by Taylor-DeJongh on a strategic deal
• Questerre Energy (TSX:QEC) closed a C$06 million offering underwritten by a syndicate led by Arctic Securities on a best efforts basis.
• Euro Sun Mining (TSX:ESM) closed a C$6 million offering on a best efforts basis.
• Sandspring Resources (TSXV:SSP) closed a C$02 million offering on a best efforts basis.

Company news

NuLegacy Gold (TSXV:NUG) commenced a fourteen-hole 16,000 feet reverse circulation and core drilling program to follow up on the successes of its 30-hole (~27,000 ft.) summer program.

Analysis

The fall drilling program will follow-up on the success of the summer wild-cat drilling program that added the Serena and VIO discoveries and confirmed the Avocado, Western Slope, Deep Iceberg and Jasperoid Basin prospects. It will aim to expand the Serena zone and connect it with the North zone, test underneath and laterally from the VIO discovery, and wildcat tests of structural targets similar to the target that generated the Serena discovery.