Check back later this morning for today’s BMR Morning Market Musings.
1. Gold has firmed up again today, trading as high as $1,260…as of 7:00 am Pacific, bullion is up $6 an ounce at $1,256 while Silver has jumped 16 cents to $16.68…it was been a good week for base metals…Copper is up another 3 cents to $2.62 while Zinc is trading at its best levels in more than 2 months at $1.23…Cobalt prices are at their highest in nearly 9 years…the last quoted Co price is $26.31, off slightly from the $26.54 high earlier in the week…the U.S. Dollar Index has backed off from strong resistance at 98…
2. Chinese trade data show the most monthly Silver imports (407 tonnes) in May since 2010, according to Commerzbank. “This was nearly twice as much as in last May, as well as the largest quantity since December 2010. Silver imports in the first five months of the year were thus a third higher than in the same period last year,” Commerzbank noted.
3. Cobalt 27 Capital (KBLT, TSX-V) began trading this morning after a 1-for-20 rollback, a successful $200 million financing, and an official change of business on the Venture to a Cobalt “pure play”…the $200 million offering consisted of 10.9 million shares being issued for gross cash proceeds of $98.3 million and 11.3 million shares being issued to acquire 1,205.6 tonnes of physical Cobalt for a total cost of $101.7 million…at closing of the offering, the company used $59.2 million (U.S.) or approximately $78.4 million of the net cash proceeds to concurrently purchase an additional 953.0 tonnes of physical Cobalt for an aggregate of 2,158.6 tonnes of physical Cobalt…following the closing of the offering and the share consolidation, Cobalt 27 has a total of 23,881,394 shares outstanding…KBLT is trading at $9.17 as of 7:00 am Pacific…
4. First Cobalt (FCC, TSX-V), which jumped almost 50% from Tuesday’s intra-day low of 52 cents to yesterday’s closing price of 76 cents, was halted again pre-market this morning, pending news…on Wednesday the company announced a proposal to acquire CobalTech Mining (CSK, TSX-V) as well as Australian-listed Cobalt One (CO1, ASX) through a friendly “merger”…the combined entity would hold a large land position in northern Ontario Cobalt-Silver Camp, multiple past producing mines, a mill and a Cobalt refinery…CobalTech was also halted this morning, about 20 minutes prior to the open – shortly after FCC…
5. The Venture is up 3 points at 774 as of 7:00 am Pacific after briefly dipping slightly below its rising 300-day moving average (SMA) this week for the first time since the new bull market began in early 2016…the TSX has added 67 points while the Dow is off 32 points in early trading…the TSX Gold Index has bounced off strong support this week and is up for the 4th straight day at 205 after declining for 9 straight sessions from 219 to a low of 196…
6. Newrange Gold (NRG, TSX-V) has enjoyed a solid week, up about 50% after releasing results Monday for the first 10 holes of a 19-hole RC drill program focused on the Merritt zone at its Pamlico Gold Project in Mineral County Nevada, a volcanic hosted high-grade vein deposit and a small past producer…work to date in the Merritt area indicates a mineralized zone approximately 100 m to 130 m wide that is presently open-ended along strike…most of the first 10 holes returned significant intercepts including 13.7 g/t Au over 21.3 m in drill hole P17–08, and 6.1 m grading 97.4 g/t Au in P17-10 (these 2 holes intercepted a new zone of near-surface mineralization 50 m south of the end of the decline)…results from 9 more drill holes are pending…NRG is off 2 pennies at 64 cents as of 7:00 am Pacific…
7. Orla Mining (OLA, TSX-V) has been a big winner this week, up another 6 cents at $1.36 through the first 30 minutes of trading today on heavy volume…2 days ago, the company announced a deal with Goldcorp (G, TSX) to acquire Camino Rojo, a Gold and Silver oxide heap leach project containing 1.7 million ounces of Gold reserves located in Zacatecas state, central Mexico, for consideration to Goldcorp consisting of 31.9 million common shares of Orla and a 2% NSR…in addition, Orla and Goldcorp have agreed to enter into an option agreement regarding the potential future development of a sulphide operation at Camino Rojo…the project hosts 1.7 million ounces of oxide Gold reserves and 4 million ounces of attributable Measured & Indicated Gold resources along with significant Silver, Lead, and Zinc by-products…based on Orla’s $1.10 closing price Tuesday, the company is paying approximately just $16/oz (U.S.) for oxide Gold reserves, with the sulphide resource providing long-term optionality to create additional shareholder value…Camino Rojo is 50 km southeast of Mexico’s largest Gold producer, Goldcorp’s Peñasquito mine…OLA is up 17 cents at $1.27 as of 7:00 am Pacific…
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This Venture market has been extremely boring so far this year, while the euphoria on Wall Street seems to have no end… but perhaps that’s all about to change? It seems to me there are many deals to be had at the moment.
Just my 2 cents.
Comment by Charles — June 23, 2017 @ 12:04 pm