ORENINC INDEX – Monday, March 7th 2022

North America’s leading junior mining finance data provider

Last Week: 50.98

This week: 54.17

The Oreninc Index increased in the trading week ending March 4th, 2022 to 54.17 from 50.98 a week ago as commodities across the board skyrocketed.

On to the money: the aggregate financings announced increased to $89.4 million, a 2-week high, with 6 new brokered financings and 3 new bought-deal financings announced. The average offer size increased to $4 million, a 2-week high, and the number of financings decreased to 22.

Gold closed the week higher at $1,966/oz from $1,900/oz a week ago. The US dollar index closed higher at 98.65 from 96.71 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week up at $46.57 from $43.13 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week higher at 304.69 from 280.02 last week. The SPDR GLD ETF inventory closed the week higher at 1,054.28 tonnes, or 33.89 million ounces, from 1017.75 tonnes last week.

In other commodities, Silver closed the week higher at $25.78/oz from $24.36/oz a week ago. Copper closed higher at $4.93/lb from $4.45/lb a week ago. Oil went higher as WTI closed higher at $115.68 a barrel from $95.72 a barrel a week ago.

The Dow Jones Industrial Average closed lower at 33,614 from 33,879 a week ago. Canada’s S&P/TSX Composite Index closed higher at 21,402 from 21,126 the previous week. The S&P/TSX Venture Composite Index closed lower at 847.24 from 849.57 a week ago.

Summary:

• Number of financings decreased to 22.
• Six brokered financing were announced this week for $58.6m, a 2-week high.
• Three bought-deal financing were announced this week for $31.5m, a 2-week high.
• Total dollars increased to $89.4m, a 2-week high.
• Average offer heightened to $4m, a 2-week high.

Major Financing Openings:

• Zacatecas Silver Corp. (TSX-V:ZAC) opened a $15 million offering underwritten by a syndicate led by Clarus Securities Inc. on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about March 22, 2022.
• EnCore Energy Corp. (TSX-V:EU) opened a $15 million offering underwritten by a syndicate led by Clarus Securities Inc. on a bought deal basis. Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about March 24, 2022.
• Journey Energy Inc. (TSX:JOY) opened a $10.54 million offering underwritten by a syndicate led by Acumen Capital Finance Partners Ltd. on a bought deal basis. The deal is expected to close on or about March 18, 2022.
• Nevada Silver Corp. (TSX-V:NSC) opened a $9.02 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about March 31, 2022.

Major Financing Closings:

• Argonaut Gold Inc. (TSX:AR) closed a $51.84 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 March 3, 2022.
• Reconnaissance Energy Africa Ltd. (TSX-V:RECO) closed a $47.47 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis.  Each unit includes 1 warrant that expires in 8 months. The deal is expected to close on or about March 1, 2022.
• McEwen Mining Inc. (TSX:MUX) closed a $19.21 million offering on a best efforts basis.
• International Battery Metals Ltd. (CSE:IBAT) closed a $12.77 million offering on a best efforts basis.