Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,272 and $1,283 so far today…as of 7:00 am Pacific, bullion is up $2 an ounce at $1,273…Silver is flat at $16.60…Copper is unchanged at $2.91 while Nickel has added 3 pennies to $4.82…Zinc, trading at a decade high, is up 2 cents to $1.52 as tight supplies and healthy demand from top consumer China continue to underpin the market…Crude Oil is off slightly at $50.30…interestingly, investment banks in a Wall Street Journal survey have cut their Oil price forecasts for a 5th consecutive month despite a recent price rally amid concerns that an oversupply of Crude will grow next year…the International Energy Agency (IEA) sees things differently, however, as it’s forecasting firmer Crude prices in 2018…the U.S. Dollar Index has dipped one-tenth of a point to 93.43…
2. “We’re running out of Gold as an industry,” Goldcorp (G, TSX) Chairman told Kitco News at the Mines and Money Conference in Toronto. “I think we’re spending significant amounts of money exploring but it’s getting harder to find. Production is starting to turn down and once that starts to turn down, I think you’ll see the Gold price really start to move.” The key to survival? “Not having too much debt because the debt in a downturn is what destroys most mining companies.”
3. Fed talk may figure prominently today as Ma Yellen is expected to deliver opening remarks at a conference in St. Louis…we’ll find out in the next 2–3 weeks if Yellen will remain as Fed Chairman after February as President Trump is expected to make a decision soon on whether she will continue or a fresh face will be brought in…meanwhile, the 3rd quarter CNBC All-America Economic Survey has found that 43% of the public believes that the economy is excellent or good, a record high in the 10-year history of the survey…36% believes the economy will get better and only 23% say it will get worse…the four-quarter average for every major economic metric in the poll – the outlook for the economy, housing, wages and the stock market – is at a record 10-year high, though you wouldn’t know it by watching CNN…
4. The U.S. service sector is on fire…non-manufacturing economic activity soundly beat expectations in September, building on momentum from August…the Institute for Supply Management’s index registered 59.8 in September, the highest reading for the service sector index since August 2005 when the index hit 61.3, according to ISM…14 of the 17 non-manufacturing industries surveyed reported growth in September…3 industries – mining and agriculture, forestry, fishing and hunting, and educational services – reported contractions…
5. U.S. markets are taking a breather in early trading with the Dow down 17 points as of 7:00 am Pacific…a JP Morgan strategist has noted that the NYSE net debit balance of margin accounts, which is a measure of how much leverage individual investors are using for their stock investments, has been rising over the past year and the current reading is very close to the record highs seen in mid-2015 or in early 2000…interestingly, on the flip side, large professional investment firms are more conservative in their stock allocations which likely bodes well for continued buoyant market conditions…the TSX has slipped 21 points while the Venture is up 2 points at 783 as of 7:00 am Pacific…Orca Gold (ORG, TSX-V) has hit a new multi-year high of 62 cents…Canada Zinc Metals (CZX, TSX-V) is up again in early trading after reporting its best drill result ever yesterday from recently completed drilling at its Cardiac Creek deposit in northeast British Columbia…drill hole A-17–137, testing the high-grade core, returned 11.8% Zinc plus Lead and 19.1 g/t Ag over a true width of 57.8 m, including 14.5% Zn plus Pb and 23.4 g/t Ag over a true width of 37 m…assays for 4 more holes are pending…President and CEO Peeyush Varshney stated, “The Cardiac Creek deposit is a top-tier Zinc asset with a large, tabular, conformable resource defined that is amenable to underground mining methods and strategically located within the Kechika trough, an untapped massive Zn-Pb-Ag SEDEX district, of which Canada Zinc Metals is the dominant landholder.”
6. Fintech Select (FTEC, TSX-V), which has had strong technical support in the mid-to-high teens since March, announced this morning that it has signed an LOI with a national cryptocurrency dealer that will enable the company’s point-of-sale (POS) network to buy and sell cryptocurrency…the cryptocurrency dealer works with a number of international exchanges to provide the competitive cryptocurrency exchange rates by way of real-time arbitrage which offers top-notch service and facilitates transactions for Canadians dealing in cryptocurrency. “Fintech Select is on a path to create a disruptive paradigm in cryptocurrency accessibility. Utilizing the services of a dealer with international reach give us choice, convenience and cost-effective pricing,” stated Mohammad Abuleil, President and CEO. “We are very excited to initiate the process for a build up of a national cryptocurrency POS network.” The company says it’ll be providing regular updates as they occur on the national rollout of the Selectcoin platform…
7. 360 Capital Financial Services Group (TSZ, CSE) recognizes the power of a name but not the importance of share structure…the company announced this morning that it will change its name to 360 Blockchain to reflect its focus on investments in the technology sector surrounding blockchain and crypto-technologies…it should start trading under its new name and symbol (CODE, CSE) sometime next week. “We are taking an all-round view to the 360 Blockchain Inc. business plan, with a mission to empower blockchain technologies with capital and experience to create exponential value,” said George Tsafalas, interim President…meanwhile, the company has been massively diluting its share structure which means it’ll have to come up with a masterful plan to create exponential value for investors…TSZ raised $900,000 in the spring at 3 cents per share, $1 million in mid-August at 4 cents per share and just announced another financing of $750,000 at 6 cents per share for total dilution of about 70 million shares…the company began the year with just under 50 million shares outstanding…
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Garabaldi PP finally closed.. institutional funds took the whole thing!!
Comment by Jeremy — October 5, 2017 @ 4:45 am
The funds are going to want to grab as much of GGI as they can, Jeremy…GGI is still retail-controlled…make them pay!…
Comment by Jon - BMR — October 5, 2017 @ 5:41 am
Jon, imagine if we get an update before the weekend. What a Thanksgiving weekend it would be!!
Comment by Dan1 — October 5, 2017 @ 5:46 am
Cxo taking a shat kicking!! With no end in sight till the spring, long winter this will be! It really irritates me, especially when talking to Adam about Ggi when it was just starting to fly , and him laughing about it….I guess Ggi wasn’t the joke after all!
Comment by Greg — October 5, 2017 @ 6:11 am
the fund was MARQUEST and/or EMD it appears. $248K payout to EMD. nothing new here for GGI. but that paper wont hurt as much as it has in the past
Comment by David — October 5, 2017 @ 6:19 am
That wouldn’t be correct to assume, David…there have been quite a few changes there, and the EMD fees could be related to different funds…a player in this is rumored to be one of the Sprott funds, for example…
Comment by Jon - BMR — October 5, 2017 @ 6:26 am
ok . looking to find out that Marquest et al aren’t the funds. would be nice
Comment by David — October 5, 2017 @ 6:34 am
Jon
Does Rick Rule still run the Sprott Funds? I think he did at one time?
Thanks
Comment by Gregh — October 5, 2017 @ 9:27 am
Wow, if these B.C. properties are worth $750 million (U.S.), what’s Nickel Mountain worth?
Kind of a head scratcher on WHY…
WEST HIGH YIELD REACHES AGREEMENT TO SELL MINING ASSETS FOR $750 MILLION USD
West High Yield (W.H.Y.) Resources Ltd. has signed a definitive arm’s-length purchase and sale agreement to sell 100 per cent of its right, title and interest in its Record Ridge South, Midnight and O.K. mineral properties to Gryphon Enterprises LLC, a company based in Maryland, United States, for a purchase price of $750-million (U.S.).
The agreement includes representations and warranties to each party customary in a transaction of this nature and is subject to a number of conditions including, without limitation, the following: (i) on or before the closing date, the company shall have entered into a take and pay agreement(s) in the form and on terms and conditions acceptable to the purchaser, acting reasonably; and (ii) all director, shareholder, securities and regulatory approvals and acceptances (as required) and all third party consents (as required) having been obtained including, without limitation, the approval of the TSX Venture Exchange. In addition, the purchaser has agreed to provide the company with the sum of $500,000 (U.S.) within 30 days from the date of execution of the agreement as a good faith, non-refundable deposit. The deposit shall be credited towards the full payment of the purchase price and, in the interim, shall be used by the seller to reimburse the seller for any and all legal fees and other reasonable expenses incurred by the seller in respect of the transactions contemplated herein. If the transaction is not completed for any reason whatsoever, the deposit shall be retained by the seller as a reasonable and genuine estimate of all damages that will have been suffered by the seller as a result of closing not occurring due to the purchaser’s default.
The company is expected to call an annual and special meeting of its shareholders in December, 2017, where the shareholders will be asked to approve the proposed purchase and sale of the assets and any other matters related to the proposed transaction. The information circular to be mailed to the shareholders will contain more detailed information in respect of the proposed transaction. A full copy of the agreement will be available for review on the company’s website and on SEDAR.
The closing of the purchase and sale of the assets is expected to occur on or before the date that is 90 days from the date a take and pay agreement(s) is entered into by the company in the form and on terms and conditions acceptable to the purchaser. After completion of the transaction, it is expected that the company will distribute the vast majority of the proceeds from the purchase and sale to the company’s shareholders while at the same time exploring other business opportunities.
Frank Marasco, president and chief executive officer of the company, stated: “The proposed transaction is great for our shareholders who have been supportive and patient in this very long and arduous process. As we move forward and recognize how important our environment is to our children and grandchildren, we are pleased to see the development of the greenest element in the world. Magnesium will support many aspects of our lives including, medical, agriculture, batteries, construction, auto and aero industry and many more applications. Thank you for all your support.”
About West High Yield (W.H.Y.) Resources Ltd.
West High Yield is a publicly traded junior mining exploration company focused on the acquisition, exploration and development of mineral resource properties in Canada with a primary objective to locate and develop economic gold, nickel and magnesium properties.
Reader Advisory
Completion of the transaction is subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all. The TSX Venture Exchange Inc. has in no way passed on the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
Investors are cautioned that, except as disclosed in the information circular to be prepared in connection with the company’s annual and special meeting or as otherwise disclosed in the agreement, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the company should be considered highly speculative.
We seek Safe Harbor.
Comment by Jon - BMR — October 5, 2017 @ 9:31 am
President and CEO of Sprott U.S. Holdings, Gregh…
Comment by Jon - BMR — October 5, 2017 @ 9:35 am
WHY definitely seems fishy…. so many why’s? If that deal was legit it would put their share price valuation around $17/share. Obviously the market doesn’t know what to make of it as well. Why? WHY
Comment by Weatheritout80 — October 5, 2017 @ 11:02 am
I spoke with Frank Marasco about his deal a few years ago, Weatheriout80…he and his wife own a lot of the stock (insider ownership is almost 50%) and he speaks powerfully, certainly has a strong grasp of the magnesium market…Record Ridge is definitely a real magnesium deposit, and strategically located, BUT…whether that property and WHY’s other assets are worth $750 million U.S. – I don’t know how that number can be substantiated or why a group would want to pay that much…will be interesting to see how this plays out…
Comment by Jon - BMR — October 5, 2017 @ 11:22 am