BullMarketRun.com

Visit the BMR comments section throughout he day for updates and helpful information!

1. Gold has bounced off its lows of the morning with equity markets taking a hit…as of 7:00 am Pacific, bullion is off just $2 an ounce at $1,276 after dipping to $1,270…Silver is 13 cents lower at $16.31…Copper has retreated for a 4th straight session, slipping 5 cents to $3.12…Nickel is off 9 cents at $6.70, Zinc is down 2 pennies at $1.40 while Cobalt is relatively unchanged at $36.73…Crude Oil remains under pressure, trading just below $65 a barrel, with WTI dented by expectations that OPEC and partner Russia will gradually increase output in order to make up for involuntary losses in Venezuela and potential shortfalls from Iran…the U.S. Dollar Index is showing fresh strength, up half a point at 95.14…the greenback was given another boost when European Central Bank President Mario Draghi told reporters today the ECB could opt to extend its bond-buying program (quantitative easing) beyond its now-scheduled ending date of December, if the euro zone shows further economic weakness…

2. Alarm bells rang across global markets today as the trade dispute between the United States and China ratcheted up another notch, though this is President Trump’s “art of the deal” strategy to forge better trade agreements…Asian stocks were one of the casualties, falling to a 4-month low after Trump’s threat to impose a 10% tariff on another $200 billion (U.S.) of Chinese goods drew warnings from Beijing about retaliation (this in turn has caused soybean futures to drop to a 9-year low – the Chinese love American soybeans)…Trump’s move followed tariffs announced last week on $50 billion in Chinese imports to the U.S., scheduled to take effect July 6 and designed to punish China for unfair trade practices…the new duties will go into effect “if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced,” the President said in a statement late yesterday…China is limited somewhat on the amount of retaliatory tariffs it can apply, simply because it doesn’t import nearly as much in American goods compared to what the U.S. takes of Chinese products…China imported just $129.9 billion from the U.S. in 2016, compared to $505.5 billion in exports, according to the Census Bureau…the trade flap also comes at a time when Beijing is aiming to reduce the country’s high debt load and leverage in financial markets…China’s total debt could reach 250% of its GDP by the end of this year, according to S&P Global Ratings, up from 170% in 2012…China is simply not in a favorable position to win a trade war against the Americans…

3. China’s benchmark equity gauge sank almost 5% at one point today and by the close, the escalating tensions with the U.S. had sent 1,023 stocks down by the daily 10% limit – or more than 1 in 4…greasing the losses was the Shanghai Composite Index’s slide below 3,000, a level previously breached during market crashes in 2015 and 2016…Trump’s tariffs have dealt a blow to a market that’s yet to recover from a $5 trillion (U.S.) collapse that began almost exactly 3 years ago…the Shanghai Composite is among the world’s worst performing benchmarks this year – only a handful of emerging markets have fared as bad…almost 80% of the Chinese index’s stocks closed at fresh 4-week lows today…

4. The Dow has fallen 350 points through the first 30 minutes of trading, wiping out its gains for the year, with Boeing and Caterpillar as the worst-performing stocks in the index this morning…materials, industrials and tech all fell by more than 1% at the open on the S&P 500…in Toronto, the TSX has declined 91 points while the Venture has backed off 2 points to 750…Pascal Biosciences (PAS, TSX-V) is one of the most active Venture stocks in early trading…the company has engaged CFN Media to conduct a 3-month investor and market visibility program after announcing yesterday that the U.S. Drug Enforcement Agency (DEA) has granted Pascal a Schedule 1 license for cannabinoid development…PAS is up 3 pennies at 50 cents as of 7:00 am Pacific…drilling in the Caballito Copper-Gold zone at Orla Mining’s (OLA, TSX-V) wholly-owned Cerro Quema Project in Panama continues to intersect near-surface mineralization with greater than 1% Copper and associated Gold values…diamond drill hole CQDH18–163 intersected 147.7 m @ 1.25% Copper and 0.28 g/t Gold from 42.5 m to 190.2 m…this includes a 42-m interval grading 3.1% Cu…still no news from Doubleview Capital (DBV, TSX-V) which was halted late Friday morning…

5. In the Eskay Camp, where temperatures have soared since the weekend to aid crews at Nickel Mountain and elsewhere, Pretium Resources (PVG, TSX) has reported that 2 long underground drill holes east from the Valley of the Kings intersected Brucejack-style mineralization throughout, with assay results also showing anomalous Copper and Molybdenum mineralization which suggests proximity to porphyry-style mineralization at depth…a follow-up surface geophysical program will be initiated utilizing the data from the downhole in situ electrode…the drill results along with the geophysics will be compiled to refine targeting of this zone for subsequent drilling…mineral chemistry evaluation for porphyry vectoring and geochronology of porphyritic material at depth are currently under way…Pretium jumped 46 cents on the news yesterday to close at $9.88…

6. Bonterra Resources (BTR, TSX-V), focused on building out an already solid position in the Urban Barry Gold Camp in Quebec, is acquiring Metanor Resources (MTO, TSX-V) in all-stock transaction…the combined entity will have one of the largest contiguous land packages in the Camp as well as control of 3 advanced high-grade deposits (Gladiator, Bachelor, Barry) and significant regional priority targets with resource upside potential…in addition, the new Bonterra will be the operator with 100% control of the only permitted Gold mill in the region, providing an expandable centralized production facility surrounded by more than 15 known Gold deposits within a 100-km radius…Bonterra will acquire all of the issued and outstanding common shares of Metanor for 73 cents in equity consideration, at an exchange ratio of 1.6039 Bonterra shares for each Metanor share…immediately prior to the completion of the Metanor acquisition, Bonterra will spin out its Larder Lake assets in Ontario and a specified amount of cash, in order to create a well-capitalized and exciting new exploration opportunity for shareholders…

7.  Choom Holdings (CHOO, CSE) has advanced the buildout of its cannabis retail store network in Alberta and British Columbia…Choom has secured the rights to an additional 7 retail locations in Alberta…Choom has 25 leases in highly strategic and secure locations in Alberta with 24 applications submitted…the company has also secured 3 additional B.C. retail leases, combined with the existing 7, for a total of 10 retail opportunities on the West Coast (in all cases, the retail opportunities are subject to all necessary governmental and municipal approvals being granted)…this number is expected to grow over the coming months as Choom is currently negotiating additional leases with the intention of submitting applications for retail licences.  “This is a significant step towards establishing Choom’s strategy to be a leading private cannabis retailer in Canada,” stated Choom President and CEO Chris Bogart.  “Market share and customer acquisition in the upcoming recreational landscape will be very difficult to come by, these applications are key to Choom’s retail strategy.  Choom’s brand was created exclusively for the recreational market, core to our values is cultivating a great experience for the consumer and part of this strategy is retail distribution. We are committed to pursuing retail licensing opportunities across the country and remain focused on cultivating good time with good friends.”

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Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information!

1. Gold is trying to hold support around $1,280 after Friday’s plunge to a near 6-month low…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,280…notably, over the last 3 weeks Gold stocks, as measured by the NYSE Arca Gold Miners Index, have outperformed bullion by 121 basis points…this could be an early indication that the metal is forming a bottom and that investors are positioning themselves now for a seasonal summer lift in bullion…Silver is off a nickel at $16.49…Copper is down for a 3rd straight session on fears that trade tensions between the world’s 2 largest economies could escalate while demand from China could cool following lacklustre data last week…China posted weaker-than-expected industrial output, investment and retail sales for May on Thursday, signalling further weakness ahead if Beijing sustains its crackdown on factory pollution and local government spending…Copper has slipped 3 pennies to $3.15 but the underlying trend remains bullish…Nickel is off 5 cents at $6.81 while Zinc and Cobalt are flat at $1.42 and $36.97, respectively…Crude Oil has recovered 30 cents to $65.36 a barrel ahead of an important OPEC meeting Friday in Vienna…the U.S. Dollar Index has added more than one-tenth of a point to 95.03…

2. Historically, a trend of higher U.S. federal budget deficits has had very bullish implications for Gold…deficits don’t appear to be top-of-mind with most investors or the mainstream media at the moment but that could easily change over the next 6 to 9 months…the Treasury Department announced last week that in the first 8 months of the current fiscal year – October through May – the U.S. government deficit widened to a whopping $532 billion, or 23% more than the same 8-month period a year ago…that’s already more than the total deficits in fiscal years 2014 and 2015…because of higher spending and lower revenues, it’s estimated that the deficit by the end of the current fiscal year will balloon to $833 billion, which would be the greatest amount since 2012…

3. South32 (S32, ASX) is buying out Arizona Mining (AZ, TSX) – the 83% it doesn’t already own – in an all-cash deal for $1.8 billion (CDN)…the offer price of $6.20 per share represents a 50% premium to Friday’s closing price and implies a total equity value for Arizona Mining of $2.1 billion (CDN)…directors and officers of Arizona Mining, who own 34% of the common shares on issue, have entered into voting support agreements…Arizona Mining owns the Hermosa Project containing the high-grade base metals Taylor deposit, the Central Zinc, Manganese and Silver oxide resource, and an extensive, highly prospective land package with potential for discovery of polymetallic and Copper mineralization…the Taylor deposit is a greenfield development project that has a reported resource of 101 million short tons Measured & Indicated at 10.4% Zinc equivalent grade…the deposit is open at depth and laterally…the project is located close to key infrastructure in an attractive mining jurisdiction…a Preliminary Economic Assessment completed by Arizona Mining in January 2018 indicated that this low-cost, long life project has the potential to deliver a very high internal rate of return…South32 CEO Graham Kerr stated, “Our all-cash offer for Arizona Mining will allow us to optimize the design and development of one of the most exciting base metal projects in the industry.  We have been a major shareholder in Arizona Mining since May, 2017, and an active participant in the Hermosa Project with representation on the operations committee and a nominee on the board of directors.  Our deep understanding of this high-grade resource and surrounding tenement package, and extensive experience at Cannington, makes us the natural owner of this project and ensures we are well positioned to bring it to development, delivering significant value to our shareholders”…

4. The Dow has fallen 136 points through the first 30 minutes of trading with U.S.-China trade concerns continuing to weigh on the minds of investors…the June survey of fund managers conducted by Bank of America Merrill Lynch has found that equity investors are overweight U.S. stocks for the first time in 15 months…commodity allocations are at their highest in 8 years, and two-thirds of managers say the U.S. is the best region in the world right now for corporate profits which are at a 17-year high… in Toronto, the TSX has climbed 31 points while the Venture has backed off 1 point to 753…Canada Goose (GOOS, TSX) continues to fly, up another $7.45 a share to $85.46…the company reported a net income of $8.1-million or 7 cents a share in the 3 months ended March 31, beating expectations for a loss of 8 cents…gross margin expanded to 62.7% in the quarter from 54.4% a year earlier…revenue from its direct-to-consumer segment jumped to $95 million from $36.5 million, while wholesale business doubled to almost $30 million in the quarter from a year earlier…RBC analyst Brian Tunick stated, “Despite its 60-year history, we see Canada Goose as in the early stages of its growth trajectory, particularly in the fragmented and growing premium outerwear market”…revenue grew 46% to $591 million in the year ended March 31 while net income jumped to $96 million or 86 cents, from $21.6 million or 21 cents a year earlier…it expects revenue to grow at least 20% and adjusted net income per share to increase at least 25% in fiscal 2019…ATAC Resources (ATC, TSX-V) was halted pre-market, pending news…Doubleview Capital (DBV, TSX-V) was halted late Friday morning with news expected sometime today…speculation is, DBV has cut a deal to JV its Hat Gold-Copper Porphyry Project in Northwest B.C.’s Sheslay district…Aldershot Resources (ALZ, TSX-V), taking a shot at the cannabis sector with a $25 million raise and a new board and management team, continues to climb, hitting a new multi-year high of 18 cents through the first 30 minutes of trading…

5. Cannabix Technologies (BLO, CSE) has jumped 25 cents to $1.76 in early trading following a progress report this morning on continued testing of the Beta 3.0 version of its marijuana breathalyzer for law enforcement and the workplace…the company also noted that the Cannabis Act legislation currently working its way through Parliament, and legislative developments in the State of Vermont, have increased the number of inquires for the Cannabix breathalyzer device…the company is receiving interest in piloting from U.S. and Canadian law enforcement groups as well as other organizations that drug-test their employees…the Senate Judiciary Committee in the state of Vermont recently rejected a bill to use saliva testing for THC enforcement, amid concerns of scientific validity, accuracy, and infringement on civil liberties…

6.  Choom Holdings (CHOO, CSE) has closed its previously announced non-brokered private placement…the company issued 14.2 million shares at 71 cents per share, raising total gross proceeds of $10.1 million…Aurora Cannabis (ACB, TSX-V) is the cornerstone investor in the placement with a lead order of $7 million…news of the PP last Wednesday led to a 52% weekly gain in CHOO with the stock closing at $1.37 Friday…“The financing provides us with the funds to accelerate the execution of our unique retail strategy moving forward,” states Chris Bogart, President & CEO of Choom…“We are now well positioned to expand our production and retail footprint, as well as pursue further opportunities across Canada”…an imminent new CSE marijuana listing to watch out for is Tidal Royalty Group…

7.  Pascal Biosciences (PAS, TSX-V) is up in early trading after announcing that it has received a U.S. Drug Enforcement Administration (DEA) Schedule 1 License for Cannabinoid Development, while the company has also made significant progress in its cannabinoid based research and development program with the University of British Columbia…Pascal is one of only a few organizations with a Schedule I Researcher license in the United States that is not a university…obtaining a DEA Schedule I Researcher license is a rigorous process, requiring a well-documented line of scientific investigation in a formal application, inspection of laboratory facilities, review of record-keeping plans, and confirmation of facility security.  “Receiving our Schedule I DEA license allows us to immediately conduct advanced R&D on cannabinoids, with a goal of conducting clinical trials on cancer patients as soon as possible”, commented Dr. Patrick Gray, CEO at Pascal…meanwhile, given strong results, the company has renewed its UBC collaboration and financial support of Dr. Wilfred Jefferies’ laboratory at the Michael Smith Laboratories…Dr. Jeffries was the first scientist to discover specific cannabinoids that can increase the immune recognition of both mouse and human cancer cells…together, both labs have greatly extended this work…over 375 natural and synthetic cannabinoids have been tested, and the most potent and safe cannabinoids have been identified…“Previous support by Pascal enabled the discovery of specific cannabinoids that enhance detection and elimination of cancers by the immune system”, commented Dr. Jefferies. “Together we have made great progress in developing a cannabinoid for cancer.  Pascal’s continued financial support will enable a lead product to complete preclinical efforts for treatment of patients with cancer”…

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