Last week index score: 45.85 (updated)

This week: 25.90

Prospero Silver (TSX-V: PSL) and Fortuna Silver Mines (TSX:FVI) amended their strategic financing agreement and amended the 2018 work program in Mexico.

NuLegacy Gold (TSX-V: NUG) began drilling on its Red Hill in the Cortez gold trend of Nevada.

Zinc One Resources (TSX-V: Z) announced additional drill results from the Mina Grande Sur zone at its Bongará zinc mine project in north-central Peru.

The Oreninc Index halved in the week ending May 11th, 2018 to 22.90 from an updated 45.85 a week ago as funding again dried up.

Another quiet and less volatile week that saw gold steadily build momentum throughout the week only to lose it at the end. The US and North Korea agreed to meet at a landmark presidential summit in Singapore. Meanwhile, US president Donald Trump pulled the US out of the 2015 Iran nuclear framework deal and said that the US will continue to impose sanctions on the country and any company that continues to do business with it to the ire of European countries.

On to the money…total fund raises announced fell to C$56.5 million, a seven-week low, which included no brokered financings, a five-week low, and no bought deal financings, also a five-week low. The average offer size grew to C$2.9 million, a two-week high although the number of financings fell to 19, a nine-week low. Whilst the dollars announced did not fall much from last week, the absence of broker action saw the Oreninc Index take a proportionally bigger hit.

A flat week for gold as it closed up slightly at US$1,319/oz from US$1,314/oz a week ago. Gold is now up 1.27% this year. The US dollar index, on a tear since mid-April, finally took a hit and closed down at 92.5 from 92.56 a week ago after hitting a high of 93.12. The Van Eck managed GDXJ posted growth through the week and then weakened at the close to end up at US$33.85 from US$33.55 last week. The index is down 0.82% so far in 2018. The US Global Go Gold ETF also saw growth to close up at UA$13.35 from US$13.11 a week ago. It is up 2.61% so far in 2018. The HUI Arca Gold BUGS Index closed up at 182.24 from 181.39 last week. The SPDR GLD ETF again saw sales to close its inventory at 857.64 tonnes from 864.13 tonnes a week ago.

In other commodities, silver made a gain to close up at US$16.66/oz from US$16.53/oz a week ago. Likewise, copper made gains to close up at US$3.11/lb from US$3.08/lb last week. Oil continued to post gains to close up at US$70.51 a barrel from US$69.72 a barrel a week ago, returning to levels last seen in late 2014.

The Dow Jones Industrial Average rebounded from its losses last week to close up at 24,831 from 24,262 last week. Canada’s S&P/TSX Composite Index also saw growth to close up at 15,983 from 15,729 the previous week. The S&P/TSX Venture Composite Index closed up at 782.92 from 772.24 last week.

Summary:

• Number of financings declined to 19, a nine-week low.

• No brokered financings were announced this week, a five-week low.

• No bought-deal financings were announced this week, a five-week low.

• Total dollars fell to $56.5m, a seven-week low.

• Average offer size grew to $2.9m, a two-week high.

Financing Highlights

West African Resources (TSX-V: WAF) is to raise A$35 million to fund pre-development activities at its Sanbrado gold project in Burkina Faso.

• West African will issue 109.4 million shares @ A$0.32.
• The company anticipates completing a revised feasibility study by the end of the second quarter.

Major Financing Openings:

• West African Resources (TSX-V:WAF) opened a $34.3 million offering on a best efforts basis.
• Wealth Minerals (TSX-V: WML) opened a $5 million offering on a best efforts basis. Each unit includes half a warrant that expires in 24 months.
• Aton Resources (TSX-V: AAN) opened a $3 million offering on a best efforts basis. Each unit includes half a warrant that expires in 60 months. The deal is expected to close on or about May 15th.
• ATAC Resources (TSX-V: ATC) opened a $3 million offering on a best efforts basis.    

Major Financing Closings:

• Africa Energy (TSX-V: AFE) closed a $57.98 million offering underwritten by a syndicate led by Pareto Securities on a best efforts basis.
• Seabridge Gold (TSX: SEA) closed a $19.73 million offering on a best efforts basis.
• Garibaldi Resources (TSX-V: GGI) closed a $13.05 million offering on a best efforts basis.    
• Pacton Gold (TSX-V: PAC) closed a $5.55 million offering underwritten by a syndicate led by Sprott Capital Partners on a best efforts basis.

Company News

Prospero Silver (TSX-V: PSL) and Fortuna Silver Mines (TSX: FVI) amended their strategic financing agreement and amended the 2018 work program in Mexico.

• Repricing and exercise of Fortuna’s 5.4 million warrants to provide C$803,571 additional funding for drilling.
• 6,000m drill program to test three additional targets: Buenavista, Bermudez and Trias.
• November 30th deadline agreed for Fortuna to exercise its option rights to select up to two Prospero projects for option to joint venture agreements.

Analysis

The renewed commitment by Fortuna to test new targets is encouraging. The repricing and exercising of Fortuna’s warrants is a non-dilutive way for Prospero to secure more funding at a premium to market price for the planned work and removes warrant overhang from the stock.

NuLegacy Gold (TSX-V: NUG) began drilling on its Red Hill in the Cortez gold trend of Nevada.

• An initial 15,000 feet of drilling or 12 holes. Results will determine the second stage of drilling.
• 2018 drilling and field exploration budget of C$5.0 million with emphasis on discovery of new, additional gold zones.

Analysis

With a new season of drilling commencing following an extended winter break, the company is looking to step out from and grow the size of its existing discoveries as well as continuing to find new mineralized areas to increase the overall size and scope of Red Hill. The next couple of months should see regular news flow from the company.

Zinc One Resources (TSX-V:Z) announced additional drill results from the Mina Grande Sur zone at its Bongará zinc mine project in north-central Peru.

• Highlights included 8.2m @ 42.7% Zn.
• 81 drill holes for 1,811m drilled to date.

Analysis

This portion of the Mina Grande Sur drill program was designed to determine the extent of the mineralization so obtaining additional high-grade intersections is a bonus and attest to the robustness of Mina Grande Sur, which should be reflected in the upcoming resource calculation.

About Oreinc.com:

Oreninc.com is North America’s leading provider of relevant financing information in the junior commodities space. Since 2011, the company has been keeping track of financings in the junior mining as well as oil and gas space. Logging all relevant deal and company information into its proprietary database, called the Oreninc Deal Log, Oreninc quickly became the go-to website in the mining financing space for investors, analysts, fund managers and company executives alike.

The Oreninc Deal Log keeps track of over 1,400 companies, bringing transparency to an otherwise impenetrable jungle of information. The goal is to increase the visibility of transactions and to show financings activity in a digestible format. Through its daily logging activities, Oreninc is in a position to pinpoint momentum changes in the markets, identify which commodities are trending and which projects are currently receiving funding.

Website:  www.oreninc.com

Last week index score: 28.01 (updated)

This week: 42.63

Zinc One Resources (TSXV:Z) received the first results from drilling at its Bongará zinc mine project in north-central Peru.

NuLegacy Gold (TSXV: NUG) said late winter storms deposited as much as three feet of snow on parts of its Red Hill property in the Cortez gold trend of Nevada, USA.

Prospero Silver (TSXV: PSL) announced the results of the third hole of a three-hole drill program at the Pachuca SE project in Hidalgo, Mexico.

Avrupa Minerals (TSXV: AVU) closed a private placement and raised C$550,000.

The Oreninc Index increased in the week ending March 30th, 2018 to 42.63 from an updated 28.01 a week ago as brokered and bought deal financings returned, even though it was a short week due to the Easter break.

Another swinging volatile week for gold as its recent fear trade boost subsided as US president Donald Trump deflated some of his trade tariff rhetoric. However, market analysts increasingly expect a gold breakout to occur, with the latest portent being that the gold/silver price ratio has gone past 80:1. This is the fifth time in the past 23 years that this has happened and on each previous occasion gold and silver equities exploded to the upside starting between 30-60 days later.

On to the money: total fund raises announced tripled to C$96.1 million, a four-week high, which included three brokered financings for C$13.3m, a two-week high, and two bought-deal financings for C$3.0 million, also a two-week high. The average offer size almost tripled to C$3.7 million, a four-week high.

Another range-bound volatile week for gold during which the yellow metal closed down at US$1,325/oz from US$1,347/oz a week ago despite hitting a mid-week high of US$1,353/oz. Gold is now up 1.74% this year. Meanwhile, the US dollar index closed up at 89.97 from 89.44 a week ago. The van Eck managed GDXJ also closed down at US$32.15 from US$32.78 last week. The index is down 5.80% so far in 2018. The US Global Go Gold ETF manged to hold its ground, dipping slightly to close down at US$12.71 from US$12.74 a week ago. It is down 2.31% so far in 2018. The HUI Arca Gold BUGS Index closed down at 175.41 from 176.86 last week. The SPDR GLD ETF saw some selling to close down at 846.12 tonnes from 850.54 tonnes a week ago.

In other commodities, the silver closed down at US$16.36/oz from US$16.56/oz a week ago. Copper recovered from its recent fall below the US$3.00/lb level to close up at US$3.02/lb from US$2.99/lb last week. Oil put in a losing week and closed down at US$64.94 a barrel from US$65.88 a barrel a week ago.

The Dow Jones Industrial Average showed signs of recovering from the trade-war potential resulting from Trump’s China tariffs announcement, to close up at 24,103 from 23,533 last week. Likewise, Canada’s S&P/TSX Composite Index got on the road to recovery to close up at 15,367 from 15,223 the previous week. The S&P/TSX Venture Composite Index closed down at 796.67 from 817.80 last week.

Summary:

• Number of financings grew to 26, a two-week high.
• Three brokered financings were announced this week for C$13.3m, a two-week high.
• Two bought-deal financings were announced this week for C$3.0, a two-week high.
• Total dollars jumped up to C$96.1m, a four-week high.
• Average offer size also grew to C$3.7m, a four-week high.

Financing Highlights

Asanko Gold (TSX: AKG) opened a US$17.6 million (C$22.79 million) offering on a strategic deal basis with Gold Fields, which will purchase 22.4 million shares @ US$0.79, a 9.9% interest.

• Asanko also entered into a JV with Gold Fields under which it will receive US$185 million for a 50% interest in its Asanko gold mine.
• Asanko will use the proceeds to repay US$164 million of debt with Red Kite.

Serabi Gold (TSX: SBI) announced a US$15 million strategic private placement with Greenstone Resources.

• 297.8 million @ 0.5 pence, a 29.82% interest.
• Funds will be used to undertake drilling to delineate additional resources and expand the life of mine at the Palito and Sao Chico projects, and advance the recently acquired Coringa project, all in Brazil.
• Serabi also opened a private placement for a minimum of US$8.0 million @  3.6 pence undertaken by Peel Hunt.

Major Financing Openings:

• Asanko Gold (TSX:AKG) opened a C$22.79 million offering on a strategic deal basis.
• Serabi Gold (TSX:SBI) opened a C$18.46 million offering on a strategic deal basis.    
• North American Nickel (TSXV:NAN) opened a C$15 million offering on a best efforts basis. Each unit includes half a warrant that expires in two years.
• Serabi Gold (TSX:SBI) opened a C$10.32 million offering underwritten by a syndicate led by Peel Hunt on a best efforts basis.    

Major Financing Closings:

• Serabi Gold (TSX:SBI) closed a C$11.53 million offering underwritten by a syndicate led by Peel Hunt on a best efforts basis.    
• Auryn Resources (TSXV:AUG) closed a C$10.08 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada on a bought deal basis.
• Skeena Resources (TSXV:SKE) closed a C$8.46 million offering underwritten by a syndicate led by PI Financial on a best efforts basis. Each unit included half a warrant that expires in two years.
• Chakana Copper (TSXV:PERU) closed an C$8 million offering underwritten by a syndicate led by Eventus Capital on a best efforts basis.

Company News

Zinc One Resources (TSXV: Z) received the first results from drilling at its Bongará zinc mine project in north-central Peru. Drilling commenced at the Mina Grande Sur and Bongarita zones where two portable drill rigs are currently operating. At Mina Grande Sur, 543m were completed in 33 holes with highlights including 5.5m @ 26.1% Zn in hole MGS18001. At Bongarita, 587m were completed in 36 holes with highlights including 11.5m @ 16.0% Zn in hole BO18005.

Analysis

The initial results are very optimistic and demonstrate the potential of the project by confirming its high-grade nature, particularly given that many intercepts start at or near surface. The results will contribute to the upcoming resource estimate and PEA planned for 2018.

NuLegacy Gold (TSXV: NUG) said late winter storms deposited as much as three feet of snow on parts of its Red Hill property in the Cortez gold trend of Nevada, USA making access to selected drill target areas difficult and dangerous. As a consequence, the company had to release a reverse circulation drill rig it contracted to begin drilling in late March and replaced it with a drill scheduled to arrive late April.  Drilling will initially focus on following up on the 2017 success in the Serena and Avocado zones in areas with broad intervals of intense alteration, silicification and decalcification seen in several of the drill holes in this large exploration area.

Analysis

Freak weather can happen, but this event should only delay the company by a month.

Prospero Silver (TSXV: PSL) announced the results of the third hole of a three-hole drill program at the Pachuca SE project in Hidalgo, Mexico. Drilling confirmed the presence of highly anomalous silver values hosted by blind epithermal veining in three widely separated zones hosted by 7km of structures on the property. Hole 3 cut multiple zones of anomalous silver including 1.5m @ 121.3g/t Ag & 0.37g/t Au.

Analysis

Drilling of the Pachuca targets continues drilling the third of three initial projects funded by Fortuna Silver (TSX: FVI) in early stage proof of concept programs. The program successfully demonstrated that Pachua SE hosts blind epithermal veins with silver and gold mineralization. The next step will be to agree additional drilling to define the extent of mineralization in the veins.

Avrupa Minerals (TSXV: AVU) closed a private placement and raised C$550,000 and issued 6.9 million units @ C$0.08. Each unit consists of one share and one warrant exercisable @ C$0.12 for two years. The funds will be used for exploration mainly in Portugal and Kosovo.

About Oreinc.com:

Oreninc.com is North America’s leading provider of relevant financing information in the junior commodities space. Since 2011, the company has been keeping track of financings in the junior mining as well as oil and gas space. Logging all relevant deal and company information into its proprietary database, called the Oreninc Deal Log, Oreninc quickly became the go-to website in the mining financing space for investors, analysts, fund managers and company executives alike.

The Oreninc Deal Log keeps track of over 1,400 companies, bringing transparency to an otherwise impenetrable jungle of information. The goal is to increase the visibility of transactions and to show financings activity in a digestible format. Through its daily logging activities, Oreninc is in a position to pinpoint momentum changes in the markets, identify which commodities are trending and which projects are currently receiving funding.