Gold has traded between $1,209 and $1,217 so far today…as of 9:30 am Pacific, bullion is up $10 an ounce at $1,215 as it tries to end the month by snapping a 9-session losing skid that brought the metal to a 3-and-a-half month low yesterday…Silver, which is headed for its biggest monthly drop since September, is up 4 cents at $16.00…Copper is down a penny at $2.13…Crude Oil has jumped 50 cents to $49.83 while the U.S. Dollar Index has gained one-tenth of a point to 95.73…
Hedge funds and money managers fled for the exits on mass in the Gold market as speculative net long positions were significantly reduced in the week ending May 24, according to the latest data from the Commodity Futures Trading Commission…no big surprise…higher interest rate expectations for June and July convinced short-term speculative traders to take profits and reduce net long positions to levels not seen in nearly 2 months…analysts at Commerzbank said that November saw similar trading activity (that proved to be a great month to accumulate Gold) as net longs were sharply reduced over a 2-week period immediately ahead of a Fed rate hike…we all know what happened after the Fed made its move – the dollar tanked and Gold started taking off to the upside…
The trading behavior of the Venture, a reliable leading indicator, tells us that Gold’s downside potential from current levels is very limited…exceptionally strong support for the metal exists between the rising 200-day moving average (SMA) in the mid $1,160’s to $1,200 which was a key breakout point early this year…the Venture has enjoyed a much better month than Gold, Silver and Copper, an encouraging divergence that suggests what we’ve seen over the last couple of weeks in those markets is merely a healthy correction that investors should not fear…
The “Swan Chart” Of Risks
Analysts at RBC Economics have come out stating that despite the “surprisingly hawkish” minutes from the Fed’s May meeting, raising rates in June is “nearly impossible”…meanwhile, risks to the world economy remain to the downside and include sharply weaker global growth and a sudden change to expectations regarding the Fed’s interest rate path, according to Societe Generale which issued a “Swan Chart” of risks today…the French bank, in its quarterly economic outlook, also said there was still a 30% chance of an economic hard landing for China…
The Fed – Between A Rock And A Hard Place
Just one of the Fed’s problems, in our view, is that whenever it turns up the rhetoric regarding a potential rate hike, the U.S. dollar takes off – and the high value of the greenback over the last couple of years has unquestionably created deflationary pressures in addition to negatively impacting U.S. economic growth…those facts, in turn, make it much more difficult for the Fed to actually implement a rate hike cycle…in other words, the Fed is strangely allowing itself to get caught up in a negative feedback loop that ultimately restrains its ability to advance the process of rate normalization…
Important Week For U.S. Economic Data
This week’s deluge of U.S. economic data started this morning…a bright spot is U.S. consumer spending which recorded its biggest increase in more than 6 years in April, though consumer confidence abated somewhat…meanwhile, a preferred Fed inflation gauge increased from the previous month’s reading…overall, sort of a mixed bag for the Fed…
The Commerce Department reported that consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged 1% last month as households bought automobiles and a range of other goods and services…however, the Conference Board came out with data that showed consumers were feeling less optimistic for the 2nd month in a row as the Consumer Confidence Index fell to 92.6 in May…economists expected the index to rise to 96 in May, up from April’s revised reading of 94.7…
Meanwhile, the personal consumption expenditure (PCE) price index, excluding the volatile food and energy components, rose 0.2% last month after edging up 0.1% in March…in the 12 months through April, the core PCE rose 1.6% (still below the central bank’s 2% target, however) after a similar year-over-year increase in March…
Another reading just in – the Chicago Purchasing Managers Index continues to weaken, falling into contraction territory, with a reading of 49.3 this month, down from a 50.3 reading seen in April…this is the lowest level for this index since February and the 6th time it has been in contraction over the past 12 months…
Additional key information on the U.S. economy will come from the manufacturing and non-manufacturing ISM surveys scheduled for tomorrow and Friday, respectively…also on tap Friday, of course, is the all-important non-farm payrolls report…for the Fed to gather the courage to raise rates again, payrolls growth would likely have to come close to the 3-month average of 200,000 while some wage inflation would also have to be evident…
In today’s Morning Musings…
1. Canasil Resources (CLZ, TSX-V) & Orex Minerals (REX, TSX-V) take off after more outstanding drill results from their Sandra Escobar Silver discovery in Mexico…
2. What Richmont Mines (RIC, TSX) tells us about the direction of Gold and Gold stocks…
3. Important chart updates – TSX Gold Index, CRB Index…
4. 10-cent Lithium play ready for a breakout…
5. Coming hot technology play on the CSE…
Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings…
SAVE 25% with a risk-free subscription (as little as $1 per day) as you gain full access to this and other exclusive BMR content…
Aben Resources Ltd (3)
Symbol C : ABN
Shares Issued 8,078,907
Close 2016-05-30 C$ 0.11
Recent Sedar Documents
View Original Document
Aben closes $128,250 second tranche of financing
2016-05-31 12:45 ET – News Release
Mr. Jim Pettit reports
ABEN RESOURCES CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT
Aben Resources Ltd. has closed the second tranche of the private placement announced on May 11, 2016. The company has issued 2,565,000 units at five cents for gross proceeds of $128,250 with each unit consisting of one share and one warrant exercisable at 10 cents for a period of one year. Agents received an aggregate of $2,800 cash and 56,000 agents’ warrants as finders’ fees with the warrants having the same terms as the subscribers’ warrants.
Aben intends to utilize the proceeds from the private placement for exploration on its newly acquired 3,906-hectare Beauty, Iskut River, gold property located in the Golden Triangle region of northwest British Columbia and for general working capital purposes.
We seek Safe Harbor.
Comment by John - BMR — May 31, 2016 @ 8:55 am
ABN Rumors they have add to there Golden Triangle property already staked so continuous to what they have like 5 times bigger
Comment by TheSkipper — May 31, 2016 @ 9:03 am
Colorado Resources boosts financing to $4.73-million
2016-05-31 19:12 ET – News Release
Mr. Adam Travis reports
COLORADO INCREASES NON-BROKERED FINANCING TO $4.73M AND COMPLETES TRANCHE 2 OF $2.09M
Colorado Resources Ltd., further to its press release of May 19, 2016, has completed the second tranche of its non-brokered private placement for total gross proceeds of $2,091,425. The offering consists of 9,274,931 non-flow-through units of the company at an issue price of 35 cents per non-flow-through unit, as well as 3,542,334 common shares of the company that qualify as flow-through shares for the purposes of the Income Tax Act (Canada) and 1,771,167 warrants (one share and half a warrant being a flow-through unit) at an issue price of 42 cents per flow-through unit.
The initial tranche, which closed effective May 19, 2016, consisted of the issuance of 2,211,430 non-flow-through units and 2,282,334 flow-through units for total gross proceeds of $1,732,580.
The second tranche, which closed effective May 31, 2016, consisted of the issuance of 4,463,500 non-flow-through units and 1.26 million flow-through units for total gross proceeds of $2,091,425.
The third and final tranche of 2,600,001 non-flow-through units for proceeds of $910,000 is expected to close on June 1, 2016.
In connection with the first and second tranches, the company paid total finders’ fees of $182,279 cash and issued to finders 68,880 warrants at an exercise price of 35 cents and 128,119 warrants at an exercise price of 42 cents. Each finder warrant is otherwise exercisable on the same terms as the warrants issued to investors in the offering.
For the second tranche, each non-flow-through unit consisted of one common share in the capital of the company and one common share purchase warrant, with each non-flow-through warrant entitling the holder to acquire an additional non-flow-through share at an exercise price of 50 cents until May 31, 2018.
For the second tranche, each flow-through unit consisted of one flow-through common share in the capital of the company and one-half of one non-transferable non-flow-through common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional non-flow-through common share of the company at an exercise price of 60 cents until May 31, 2018.
The non-flow-through warrant and flow-through warrant terms for the second tranche contain an acceleration provision such that if, commencing on Oct. 2, 2016, the closing price of the common shares of the company on the TSX Venture Exchange is higher than 75 cents for 20 consecutive trading days, then on the 20th consecutive trading day, the expiry date of the warrants may be accelerated to the date that is 20 trading days after this acceleration trigger date by the issuance of a news release announcing such acceleration within two trading days of the acceleration trigger date.
The shares issued under the second tranche, and any shares issued on exercise of the flow-through warrants and non-flow-through warrants, will be subject to restrictions on transfer until Oct. 1, 2016.
The proceeds will be used by the company for exploration activities on its Canadian properties and for working capital.
We seek Safe Harbor.
Comment by John - BMR — May 31, 2016 @ 4:48 pm
NEWS…..V.CXO
June 1, 2016
News Release
Colorado Completes Non-Brokered Financing For $4.73M And Closes Final Tranche of $910,000 With Kinross
COLORADO RESOURCES LTD. (TSX-V: CXO) (“Colorado” or the “Company”) is pleased to announce that, further to its press release of May 19, 2016, and May 31, 2016 it has completed the final tranche of its non-brokered private placement (the “Offering”) with Kinross Gold Corporation (“Kinross”) for aggregate gross proceeds of $910,000 (the “Final Tranche”). The Final Tranche which closed effective June 1, 2016 consisted of the issuance of 2,600,000 NFT Units to Kinross.Each Final Tranche NFT Unit consisted of one common share in the capital of the Company (a “NFT Share”) and one common share purchase warrant (a “NFT Warrant”), with each NFT Warrant entitling the holder to acquire an additional NFT Share at an exercise price of $0.50 until June 1, 2018.
With the completion of the Final Tranche, the final aggregate Offering consists of 9,274,931 units of the Company (the “NFT Units”) at an issue price of $0.35 per Unit and 3,542,334 common shares of the Company that qualify as flow-through shares for purposes of the Income Tax Act (Canada) and 1,771,167 warrants (collectively, the “FT Units”) at an issue price of $0.42 per FT Unit.
Adam Travis President and CEO of Colorado states: “We are very pleased to have the strong support of our existing shareholders and welcome new ones. Kinross increasing its shareholding is a strong vote of confidence in our technical team and our projects. The closing of this placement along with the funds we already had on hand have provided us a path to earning a controlling interest in the KSP Project. KSP is clearly one of B.C.’s best exploration projects centered in the heart of the Golden Triangle. We look forward to commencing drilling shortly on our Inel high grade gold target as soon as conditions allow.”
The Final Tranche NFT Warrant contains an acceleration provision such that if, commencing on October 3, 2016 the closing price of the common shares of the Company on the TSX Venture Exchange is higher than $0.75 for 20 consecutive trading days then on the 20th consecutive trading day (the “Acceleration Trigger Date”) the expiry date of the Warrants may be accelerated to the date that is 20 trading days after the Acceleration Trigger Date by the issuance of a news release announcing such acceleration within two trading days of the Acceleration Trigger Date.
The shares issued under the Final Tranche, and any shares issued on exercise of the NFT Warrants, will be subject to restrictions on transfer until October 2, 2016.
The initial tranche (“Tranche 1”), which closed effective May 19, 2016, consisted of the issuance of 2,211,430 NFT Units and 2,282,334 FT Units for aggregate gross proceeds of $1,732,580. The second tranche (“Tranche 2”), which closed effective May 31, 2016, consisted of the issuance of 4,463,500 NFT Units and 1,260,000 FT Units for aggregate gross proceeds of $2,091,425.
The Company has paid aggregate finders’ fees in connection with Tranche 1 and Tranche 2 of $182,279 cash and issued to finders 68,880 warrants at an exercise price of $0.35 and 128,119 warrants at an exercise price of $0.42 (collectively the “Finder Warrants”). Each Finder Warrant is otherwise exercisable on the same terms as the warrants issued to investors in the Offering.
The proceeds will be used by the Company for exploration activities on it Canadian properties and for working capital.
About Colorado
Colorado Resources Ltd. is currently engaged in the business of mineral exploration for the purpose of acquiring and advancing mineral properties located in British Columbia and is also seeking opportunities in Southwest USA and Latin America.
Colorado’s current exploration focus is to continue to advance: the KSP property optioned from SnipGold, located 15 km’s along strike to the southeast of the past producing Snip Mine; its 100% owned North ROK property, located 15 km’s northwest of the Red Chris mine development, both located in northern central British Columbia.
ON BEHALF OF THE BOARD OF DIRECTORS OF
COLORADO RESOURCES LTD.
“Adam Travis”
Adam Travis
President and Chief Executive Officer
Comment by John - BMR — June 1, 2016 @ 4:51 am
CXO
Nice to see the confidence of the people participating in the PP, love it when other larger mining firms invest in the smaller ones usually comes out well in the end. Can’t wait for the drills to get turning and also hear from the other companies in the area and their plans as well for the summer.. go to be exciting…
Comment by GREG — June 1, 2016 @ 7:52 am
Kinross participation is bolds extremely well for CXO and it’s shareholders. Hang on for the ride.
Comment by Dan1 — June 1, 2016 @ 8:06 am
Yes, indeed, looks good on CXO…what might be Kinross’ next plans????
Comment by Jon - BMR — June 1, 2016 @ 8:25 am