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Oreninc index flat as gold & silver break out

Commentaries & Views

Last Week: 55.86 (Updated)

This week: 58.61

The Oreninc Index increased slightly in the trading week ending May 7th, 2021 to 58.61 from 55.86 a week ago with gold & silver breaking out.

On to the money: the aggregate financings announced decreased to $90.5 million, a 1-week low, with 3 new brokered financings and 1 new bought-deal financing announced. The average offer size increased to $2.9 million, a 2-week high, and the number of financings decreased to 31.

Gold closed the week higher at $1,831/oz from $1,768/oz a week ago. The US dollar index closed lower at 90.23 from 91.30 a week ago.

The widely followed junior mining index, the VanEck managed GDXJ, closed the week higher at $51.47 from $47.45 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week higher at 301.72 from 285.61 last week.The SPDR GLD ETF inventory closed the week higher at 1,025.15 tonnes, or 32.59 million ounces, from 1,017.04 tonnes last week.

In other commodities, Silver closed the week lower at $27.40/oz from $25.19/oz a week ago. Copper closed up at $4.74/lb from $4.45/lb a week ago. Oil went higher as WTI closed up at $64.90 a barrel from $63.48 a barrel a week ago.

The Dow Jones Industrial Average closed up at 34,777 from 33,879 a week ago. Canada’s S&P/TSX Composite Index closed down up 19,472 from 19,102 the previous week. The S&P/TSX Venture Composite Index closed higher at 954.98 from 955.26 a week ago.

Summary:

  • Number of financings decreased to 31.

  • Three brokered financings were announced this week for $48m, a 2-week high.

  • One bought-deal financing was announced this week for $30m, a 4-week high.

  • Total dollars decreased to $90.5m, a 1-week low.

  • Average offer increased to $2.9m, a 2-week high.

Major Financing Openings:

  • Fission Uranium Corp. (TSX-V:FCU) opened a $30 million offering underwritten by a syndicate led by Eight Capital on a bought deal basis. The deal is expected to close on or about May 11, 2021.

  • Battery Mineral Resources Corp. (TSX-V:BMR) opened a $15 million offering underwritten by a syndicate led by MAP on a best efforts basis. The deal is expected to close on or about May 15, 2021.

  • Vertical Exploration Inc. (TSX-V:VERT) opened a $4.05 million offering on a best efforts basis.    

  • Anfield Energy Inc. (TSX-V:AEC) opened a $3.4 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months.

Major Financing Closings:

  • Novo Resources Corp. (TSX-V:NVO) closed a $26.4 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 36 months. The deal is expected to close on or about April 5, 2021.

  • Pure Gold Mining Inc. (TSX-V:PGM) closed a $17.25 million offering underwritten by a syndicate led by Clarus Securities Inc. on a bought deal basis.    The deal is expected to close on or about May 5, 2021.

  • Aldebaran Resources Inc. (TSX-V:ALDE) closed a $9.39 million offering 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 5, 2021.

  • Pasofino Gold Ltd. (TSX-V:VEIN) closed a $9 million offering underwritten by a syndicate led by Stifel GMP on a best efforts basis. The deal is expected to close on or about June 5, 2021.
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