ORENINC INDEX – Monday, March 11^th 2019

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ORENINC attended the PDAC March 3-6 in Toronto, Canada, opening the

Capital Markets Program on Monday, March 4th at 9am.

Stay tuned for a video of our presentation on Youtube!

Last week index score: 26.17

This week: 31.10

NuLegacy Gold (TSX-V:NUG) completed a private placement of 350,000 shares @ C$0.15 for C$52,500.

The Oreninc Index increased in the week ending March 8^th, 2019 to 31.10 from 26.17 as the number of financings increased, although they were smaller.

The PDAC curse came early this year with metals and stocks selling down before the annual Prospectors and Developers Association Conference got underway in Toronto, Canada, which saw gold crash below the US$1,300/oz level and down to strong support around $1,280/oz. However, PDAC week closed on a high following disappointing US jobs numbers which propelled gold back up to $1,300/oz. With analysts expecting this month’s US Labor Department jobs report to come in around the 180,000 mark, the 20,000 new non-farm payroll jobs added in February was well-short of the mark.

The past week saw a lot of geopolitical news including a growing scandal involving Canadian Premier Justin Trudeau, reports suggesting that North Korea is gearing up for another missile launch, while Venezuela has seen a two-day black out across the country. And of course, with the UK supposedly due to leave the European union at the end of this month, the world is no closer to knowing how or if that will happen.

Conference season now passes into a brief hiatus before the copper world convenes in Santiago, Chile during the first week of April for the CRU World Copper Congress, and the Denver Gold Group hits Zurich in the second week of April.

On to the money: total fund raises announced fell to C$49.0 million, a four-week low, that included no brokered financings and no bought-deal financings. The average offer size shrank again to C$1.9 million, a four-week low, whilst the number of financings increased to 26, a two-week high.

Gold saw an up-and-down week with spot falling to US$1,285/oz before closing up at US$1,298/oz from US$1,293/oz a week ago. The yellow metal is up 1.23% this year. The US dollar index saw growth to close up at 97.30 from 96.45 last week after hitting a mid-week high of 97.66. The van Eck managed GDXJ closed up at US$32.30 from US$31.44 a week ago. The index is up 6.88% so far in 2019. The US Global Go Gold ETF also closed up at US$12.78 from US$12.53 last week. It is up 12.09% so far in 2019. The HUI Arca Gold BUGS Index also closed up at 170.00 from 164.66 last week. The SPDR GLD ETF continues to rain on the parade via ongoing inventory sell off as it closed down at 766.79 tonnes from 784.22 tonnes a week ago.

In other commodities, silver closed up at US$15.34/oz from US$15.20/oz a week ago. Copper continued to give up cents as it closed down at US$2.89/lb from US$2.93/lb a week ago. Oil saw growth again as WTI closed up at US$56.07 a barrel from US$55.80 a barrel a barrel a week ago.

The Dow Jones Industrial Average fell as it closed down at 25,450 from 26,026 last week. Canada’s S&P/TSX Composite Index also fell as it closed down at 15,996 from 16,068 the previous week. The S&P/TSX Venture Composite Index closed down at 618.08 from 625.16 last week.

Summary

• Number of financings increased to 26, a two-week high.
• No brokered financings were announced this week, a two-week low.
• No bought-deal financings were announced this week, a three-week low.
• Total dollars announced fell to C$49.0m, a four-week low.
• Average offer size shrunk to C$1.9m, a four-week low.

Financing Highlights

Talon Metals (TSX:TLO) announced a series of transactions totalling C$10.175 million

• It closed C$9.825 million with an additional tranche of C$350,000 yet to close.
• 4 million shares @ C$0.08 for proceeds of C$3.15 million.
• Talon issued 25.0 million shares to its JV partner under a requirement to issue US$1.5 million in shares under the JV agreement.
• Talon granted a 3.5% NSR to Triple Flag Mining Finance in consideration of the payment of US$5.0 million.
• Talon agreed to repay Resource Capital Fund (RCF) a US$1 million unsecured promissory note in shares at a conversion price of C$0.0826. RCF will be issued 18.0 million shares.
• Talon entered into conversion transactions with that eliminated C$32 million in debt. RCF converted 95% of its debt at C$0.156 per share.
• RCF converted the outstanding principal and interest under a US$16 million convertible loan facility at C$0.156 per share. RCF will be issued 196.8 million shares.
• Funds will be used to make the initial payment under its existing JV agreement to earn a 60% interest in the Tamarack nickel-copper-cobalt project in Minnesota, USA.

Major Financing Openings

• Talon Metals (TSX:TLO) opened a C$33 million offering on a best efforts basis.   
• Cantex Mine Development (TSX-V:CD) opened a C$10.0 million offering on a best efforts Each unit includes a warrant that expires in three years.
• Havilah Mining (TSX-V:HMC) opened a C$4.0 million offering on a best efforts The deal is expected to close on or about March 18th.
• Euro Sun Mining (TSX:ESM) opened a C$3.0 million offering on a best efforts Each unit includes half a warrant that expires in two years. The deal is expected to close on or about March 15th.

Major Financing Closings

• Lundin Gold (TSX:LUG) closed a C$58 million offering underwritten by a syndicate led by GMP Securities on a bought deal basis.
• Kootenay Silver (TSX-V:KTN) closed a C$7.0 million offering on a best efforts Each unit included a warrant that expires in five years.
• Minera Alamos (TSX-V:MAI) closed a C$99 million offering on a best efforts basis.

Company News

NuLegacy Gold (TSX-V:NUG) completed a private placement of 350,000 shares @ C$0.15 for C$52,500.

• Placement with a lessor to cover certain of the company’s office lease payments for 2019.