Resource Financings Hit a Five-Week High: Oreninc

Total resource financings increased to C$185 million, with Jaguar Resources (CVE:JRI) leading the way | April 11, 2017 | SmallCapPower: The Oreninc Index of resource financings jumped in the week ending April 6, 2017 to 87.01 from 58.79 the previous week, recovering some of its recent losses as gold put in another growth spurt.

Total fund raising dollars announced increased to C$185.0m, a five-week high, which included four brokered financings for a total of C$68.0m within which there were two bought-deal financings for C$50.0m. The average offer size increased to C$3.6m, whilst the total number of financings announced increased to 58, a seven-week high.

The gold price had a strong week closing up at US$1,253 partly on news of a government chemical weapons attack in Syria that killed more than 80 people. US president Donald Trump Trump ordered an air attack on a Syrian air force base in response to this which drew opprobrium of Syrian ally Russia. With gold strengthening, industry’s leading benchmark index, the van Eck managed GDXJ posting growth and is now up 15.88% so far in 2017 and the inventory of the SPDR GLD ETF also grew a modest amount to 836.5 tonnes this week as did precious metals stocks. Silver pulled back under US$18 to close at US$17.96 whilst copper treaded water at US$2.64 a pound.

Last week saw the copper sector come together at the 2017 World Copper Conference in Santiago, Chile. Key takeaways were a supply deficit is brewing but copper prices need to rise to the $3.00-3.30/lb mark to unlock significant new capacity investment, but even then, are there the projects in the pipeline to meet forecast demand? Supply tightness will be particularly keen in copper concentrates, particularly given that several Asian countries are looking to increase smelter capacity.

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Oil had another good week closing at $52.29.

The Dow Jones Industrial Average also treaded water this past week closing slightly down at 20,656, whilst in Canada, the S&P/TSX Composite Index closed up on the week at 15,677. In the junior space, the S&P/TSX Venture Composite Index continued to gain and closed the week at 824.27.

Financial news highlights

North American Nickel (TSXV: NAN) announced a best-efforts offering of up to C$15 million through Paradigm Capital to commence a work program and additional exploration and drilling at its Maniitsoq project in Greenland. Maniitsoq has numerous high-grade nickel-copper sulphide occurrences in the Greenland Norite Belt.

Metanor Resources (TSXV: MTO) announced a private placement financing of 142.9M units at C$0.07 each for gross proceeds of C$10.0 million, with Kirkland Lake Gold acquiring up to 103.6M units for C$7.3 million and Wexford Capital 18.8M units for C$1.3M. Funds will be used to advance the Bachelor mine and Barry project.

Major Financing Openings:

  • Jaguar Resources (TSXV: JRI) opened a C$92 million offering on a best efforts basis.
  • Leucrotta Exploration (TSXV: LXE) opened a C$50 million offering underwritten by a syndicate led by Haywood Securities on a bought deal The deal is expected to close on or about April 26, 2017.
  • North American Nickel (TSXV: NAN) opened a C$15 million offering underwritten by a syndicate led by Paradigm Capital on a best efforts The deal is expected to close on or about May 4, 2017.
  • Metanor Resources (TSXV: MTO) opened a C$10 million offering on a best efforts Each unit includes a half warrant that expires in 24 months.

Major Financing Closings:

  • Tower Resources (TSXV: TWR) closed a C$34 million offering on a best efforts basis. Each unit included a half warrant that expires in 60 months.
  • Klondike Gold (TSXV: KG) closed a C$2 million offering on a best efforts Each unit include a warrant that expires in 36 months.
  • Canada Zinc Metals (TSXV: CZX) closed a C$5 million offering on a best efforts basis.
  • Pinecrest Resources (TSXV: PCR) closed a C$5 million offering on a best efforts basis.

Company news

Kootenay Silver (TSXV: KTN) C$0.29, Mkt Cap C$50.7 million

Announced drilling returned more high-grade silver intercepts from the last six holes of the 2016 drill program conducted by Pan American Silver on the La Negra silver discovery within the Promontorio project in Sonora, Mexico.

Drilling returned highlights including 47.1m @ 121 g/t Ag in hole LN-67-16 and 40.85m @ 194 g/t Ag in hole LN-68-16.

The 3,500m 2016 Pan American Silver drilling program was focused on infilling La Negra with coverage to 50m centres and testing the along-strike and down dip extents, as well as following up on geophysical and geological anomalies.


Additional drill holes in La Negra continue to add to the scope and potential of the discovery.

NuLegacy (TSXV: NUG) C$0.29, Mkt Cap C$84.9 million

Provided an update about its Avocado gold discovery in the Cortez trend of Nevada.

  • Drilling has confirmed that Avocado is a Carlin-type gold system with the possibility there are two distinct gold systems referred to as the West and East Avocado.
  • The drilling and geophysical and chemical surveys indicate that the gold mineralization is open to the west and northwest.
  • The initial 2017 program will drill three reverse circulation holes as step outs to the west and northwest.
  • Drilling is part of an initial forty-hole 2017 exploration program of about 10,500m.
  • NuLegacy also engaged Hybrid Financial to provide marketing, distribution and branding services for three months expiring June 30th.


NuLegacy continues to add data and understanding to its Avocado gold discovery that could lead to future exploration success and the growth in its potential.

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Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.

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