ORENINC INDEX – Monday, May 27th 2021

North America’s leading junior mining finance data provider

Last Week: 82.82

This week: 74.80

The Oreninc Index decreased in the trading week ending May 21st, 2021 to 74.80 from 82.82 a week ago as the average offer amount fell.

On to the money: the aggregate financings announced increased to $90.5 million, a 8-week high, with 8 new brokered financings and 6 new bought-deal financing announced. The average offer size decreased to $4.6 million, a 2-week low, and the number of financings increased to 37.

Gold closed the week higher at $1,881/oz from $1,843/oz a week ago. The US dollar index closed lower at 90.02 from 90.32 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week higher at $53.87 from $51.11 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week higher at 320.20 from 306.56 last week. The SPDR GLD ETF inventory closed the week higher at 1,044.08 tonnes, or 33.56 million ounces, from 1,028.36 tonnes last week.

In other commodities, Silver closed the week higher at $27.48/oz from $27.36/oz a week ago. Copper closed down at $4.48/lb from $4.65/lb a week ago. Oil went higher as WTI closed down at $63.58 a barrel from $65.37 a barrel a week ago.

The Dow Jones Industrial Average closed down at 34,207 from 34,382 a week ago. Canada’s S&P/TSX Composite Index closed down at 19,527 from 19,366 the previous week. The S&P/TSX Venture Composite Index closed higher at 957.2 from 931.38 a week ago.

Summary:

• Number of financings increased to 37.
• Eight brokered financings were announced this week for $82m, a 2-week low.
• Six bought-deal financing were announced this week for $67m, a 2-week low.
• Total dollars decreased to $171m, a 2-week low.
• Average offer lessened to $4.6m, a 2-week low.

Major Financing Openings:

• Rupert Resources Ltd. (TSX-V:RUP) opened a $42.4 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.    The deal is expected to close on or about June 4, 2021.
• Labrador Gold Corp. (TSX-V:LAB) opened a $15 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months.
• Dore Copper Mining Corp. (TSX-V:DCMC) opened a $13 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis. The deal is expected to close on or about June 9, 2021.
• Pan Global Resources Inc. (TSX-V:PGZ) opened a $10 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis. The deal is expected to close on or about June 4, 2021.

Major Financing Closings:

• Skeena Resources Limited (TSX-V:SKE) closed a $57.5 million offering underwritten by a syndicate led by Raymond James Ltd. on a bought deal basis.    The deal is expected to close on or about May 17, 2021.
• Whitehorse Gold Corp. (TSX-V:WHG) closed a $15.26 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 60 months. The deal is expected to close on or about May 12, 2021.
• Labrador Gold Corp. (TSX-V:LAB) closed a $15 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months.
• Goldsource Mines Inc. (TSX-V:GXS) closed a $12.65 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis. The deal is expected to close on or about May 20, 2021.