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 $1,276 and $1,290 so far today…as of 7:00 am Pacific, the metal is down $9 an ounce at $1,281…despite bullish factors on the geopolitical front, the increasing possibility of U.S. tax reform as well as the likelihood of a Fed rate hike in December are currently supporting the greenback and preventing Gold from gaining traction above $1,300 an ounce…Silver has slipped 9 cents to $17.14…another big move in Nickel this morning – it’s up 14 cents to $5.44 while Copper is slightly higher at $3.17…Crude Oil has lost 13 cents to $51.16 while the U.S. Dollar Index has climbed more than one-quarter of a point to 93.44…
2. “The Oil market has moved into modest undersupply and we expect this will persist at least through the end of the year,” according to U.S. investment bank Jefferies…OPEC (and partners including Russia) are expected to extend production cuts through the end of 2018 while the demand side of the equation remains favorable…meanwhile, U.S. commercial stocks of Crude Oil have dropped 15% from their March records, to 456.5 million barrels, below levels seen last year…part of this drawdown has been due to rising exports as a result of the steep discount of U.S. Crude to Brent, which makes it attractive for American producers to export their Oil…shipping data shows that overseas U.S. Crude Oil shipments have soared from virtually zero before the government loosened export restrictions in late 2015 to around 2.6 million bpd in October…
3. Gold demand picked up in India this week as consumers were buying more of the precious metal during the Diwali festival, but higher prices kept a cap on purchases…despite more activity, demand was still lower than last year according to a Reuters‘ report that quoted Nitin Khandelwal, chairman of All Indian Gems & Jewellery Trade Federation. “In some regions, demand was nearly 30% lower than normal, but in others, it was on par compared to last year. Overall for the country, demand was down around 15%,” Khandelwal said…
4. Nickel prices have hit a 6-week high, helped by expectations of expanding market deficits…the global Nickel market swung to a wider deficit of 6,700 tonnes in August from the month before, while Nickel production at Brazil’s Vale fell 4.3% year-on-year in the last quarter…deficit expectations rather than the cost of production are lifting prices, according to Colin Hamilton, head of commodities research at BMO Capital Markets…meanwhile, increasing demand for electric vehicle Nickel-Manganese-Cobalt (NMC) batteries is expected to have a major impact on the Nickel industry…the change won’t happen overnight, but by 2025 experts predict that batteries would account for 13% to 15% of the Nickel market, with demand for the metal growing by an average of 20% each year until then…
5. U.S. markets are higher in early trading despite the fact that General Electric (GE, NYSE) fell short of Wall Street’s expectations by a wide margin with profits weighed down by restructuring costs and weak performance at its power and Oil and gas businesses…the Dow is up 62 points as of 7:00 am Pacific while the TSX has added 43 points…Canada’s annual inflation rate rose to 1.6% last month from 1.4% in August, the highest since April and matching economists’ forecasts…the Venture, trying to snap a 4-session losing skid, has rebounded 5 points to 787 through the first 30 minutes of trading…Skeena Resources (SKE, TSX-V), which has issued enough paper to fill BC Place, has completed a 1-for-10 rollback effective this morning…it now has just 73 million shares outstanding as an underground winter drill program continues at the Snip mine on the western side of the Eskay Camp…
6. Bacanora Minerals‘ (BCN, TSX-V) environmental impact statement for its flagship Sonora project in Mexico has been approved by the environment ministry of Mexico…the approval represents a major milestone for Bacanora and is in line with its strategy to construct an open-pit mine and a large-scale beneficiation processing facility at Sonora…the company’s feasibility study for a 35,000 tonne-per-annum Lithium carbonate operation is expected to be completed by the end of this year…
7. Cornerstone Metals (CCC, TSX-V) is threatening to push to a new high after announcing the completion yesterday of a $1.1 million financing at 14 cents…CCC is an emerging Vanadium play in Nevada with only 19 million shares outstanding, even after the conclusion of this private placement…the company’s Carlin Vanadium deposit was discovered in the 1960’s by Union Carbide which completed surface mapping, trenching and 152 rotary drill holes in 11,133 m of drilling…Paul Cowley, President and CEO, commented, “As Vanadium plays an increasingly important role as a component of batteries used in the renewable energy industry, the Carlin Vanadium deposit with its apparent size, grade and location provides our company with a unique and strategic entry into this promising sector.”
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As always very informative.
Jon, Since I’ve taken an interest in GGI,I see comments that suggest that E+L’s Ni isn’t going to be big because it isn’t the same type of environment as Voisey.
Something about acidic rock and different enviro that typically produces smaller deposits.
But isn’t that what Makela is trying to disprove?
Can you help me understand what this means?
Thank you kindly.
Comment by GoldenFalcons — October 20, 2017 @ 10:19 am
GARIBALDI CLOSES $8 MILLION FIRST TRANCHE
Garibaldi Resources Corp. has closed the first tranche of the company’s recently announced $10-million private placement (see Oct. 16, 2017, news release) for gross proceeds of $8-million.
Garibaldi issued 2,539,683 units at $3.15 per unit, with each unit consisting of one common share of the company and one full share purchase warrant exercisable at a price of $4.50 per share for a period of two years. All units from the private placement are subject to a four-month hold period from the date of issuance. The private placement is subject to final TSX Venture Exchange approval.
Of the units issued, 2176423 Ontario Ltd., a corporation beneficially owned by Eric Sprott, has acquired 1,587,302 units, representing gross proceeds of $5-million. As a result of the closing of this first tranche, Mr. Sprott has increased his Garibaldi share position (see Oct. 2, 2017, news release), and now beneficially owns and controls 11,271,895 common shares and 5,538,895 share purchase warrants, representing approximately 11.7 per cent of the issued and outstanding common shares of the company on a non-diluted basis and 16.5 per cent on a partially diluted basis. Prior to this first tranche, Mr. Sprott beneficially owned and controlled 9,684,593 common shares and 3,951,593 share purchase warrants, representing approximately 10.4 per cent of the issued and outstanding common shares of the company on a non-diluted basis and 14.0 per cent on a partially diluted basis.
The units were acquired by Mr. Sprott and 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the company either on the open market or through private acquisitions, or sell securities of the company either on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of Mr. Sprott’s early warning report will appear on the company’s profile on SEDAR and may also be obtained by calling 416-362-7172 (200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J2).
Proceeds from the first tranche will be used to further advance the E&L Nickel Mountain project in addition to other Garibaldi properties in the Eskay camp and elsewhere in British Columbia, and will also be applied to the company’s gold and silver properties in Mexico.
About Garibaldi Resources Corp.
Garibaldi Resources is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions in Mexico and British Columbia.
Comment by John - BMR — October 20, 2017 @ 5:51 pm
Hi John,
Sprott certainly seems to be angling for a controlling interest in GGI. Fascinating to watch as this play evolves away from a largely retail audience to a contest for institutional control (I think we can call ES an institution!). We do not have any confirming assays yet, but it appears that ES is taking no chances that another predator (Robert Freidland?) might try to move in hence the preemptive buying in the open market and PP participation.
Comment by John — October 20, 2017 @ 6:35 pm
Looks like Eric wants to become more famous. They say after money people want fame. I really thought someone else took this placement, it is a very big surprise to me.
Comment by randd51 — October 20, 2017 @ 8:10 pm
Dont forget the Rick Rule is his sidekick.. he IS a mining guy…
Comment by Jeremy — October 21, 2017 @ 11:17 am