Gold has traded between $1,317 and $1,334 so far today to start the first full week following the UK’s bold decision to leave the EU…as of 10:00 am Pacific, bullion is up $6 an ounce at $1,322…Silver has retreated slightly to $17.70…Copper is up 2 cents at $2.13…Crude Oil is down $1.54 a barrel to $46.10 while the U.S. Dollar Index has rallied another full point from Friday to 96.26…the uncertainty created over the UK vote, and the strength in the dollar, has put the kybosh on any Fed plans to hike rates before November’s U.S. elections in our view…
Holdings in SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, jumped 2% to 934.31 tonnes on Friday, the highest since July 2013, as bullion made its biggest single day price jump in more than 7 years…
The UK’s historic vote, as the country reclaims its sovereignty, was a shock to the global establishment and triggered a $4.3 billion surge in holdings in Gold-backed funds on Friday, the most in a single day in 4 years…it adds up to a net inflow of $32 billion this year, pushing the assets to the highest level since the 3rd quarter of 2013 according to data compiled by Bloomberg…
China’s Gold imports via Hong Kong rose nearly 68% in May to the highest since December, data showed this morning…
The strength in Gold since the U.K. voted to leave the EU should also spill over into Silver, according to HSBC…Gold rose to its highest level in more than 2 years Friday while Silver hit an 18-month high. “We think Silver may benefit from ‘leakage’ from heavy Gold demand,” HSBC says. “The jump in prices for Gold coins and small bars may also encourage price conscious buyers to turn to Silver.”
We have updated Silver charts in today’s Morning Musings…
UK Fallout
Canadian Prime Minister Trudeau has come under fire from Nigel Farage, the leader of the UK Independence Party, for being “out of touch” in backing British Prime Minister David Cameron in his bid to keep Britain in the EU…Farage also said that central bank governor Mark Carney, Canada’s former central bank governor, may have to resign for not being impartial during the referendum campaign which saw 52% of Britons vote to leave the EU…
âIâm afraid that the whole international political community rallied to Mr. Cameron and the status quo,â Farage said yesterday, referring to Trudeau, who was one of many world leaders (along with globalist/socialist Obama of course) who supported Britain staying in the EU…
Farage correctly added that Trudeau would have never endorsed Canadians giving up similar powers under NAFTA…
âI mean Iâd love the Canadian Prime Minister to tell you guys that youâve decided to make NAFTA a political union, and that you are going to transfer all Ottawaâs authority to someone else, that you are going to have foreign courts overruling you,â he said. âHow long would you last? A day? A week? And yet thatâs what the Canadian Prime Minister was effectively recommending to us. I wonder sometimes whether foreign leaders genuinely understand what the European Union is.â
He added that âwhatever Trudeau said, the fact is that the United Kingdom now has an opportunity to chart a much freer course in the world.”
Farage also criticized Carney who repeatedly warned that Britain would face serious economic consequences if it left the EU, including a possible recession…Carney has defended his remarks, saying it was his duty as the central bank governor to point out risks to the economy…but Farage and others on the Vote Leave side have said he went too far…
Venture-TSX-Dow-NASDAQ Comparative
It’s always a positive sign for the Venture, and the risk trade in general, when the Index is outperforming the broader markets…in a Venture bull cycle, the chart below is the pattern that one typically sees…and the trend often stays intact for an extended period as it did throughout 2009 and 2010…the Venture bear market began when it started underperforming against the broader indices as well as Gold in the spring of 2011…
Over the last 6 months, the Venture is up 38% vs. a 4% gain in the TSX and slight losses on the Dow and NASDAQ…despite today’s weakness, and any potential of a further minor pullback, the outlook for the Venture over the 2nd half of the year is exceedingly positive…
In todayâs Morning Musings…
1. Some major financings announced this morning as +$1,300 Gold creates more believers…
2. Pilot Gold (PLG, TSX-V) is showing grade and volume at Goldstrike in Utah…
3. Another big day for Orex Exploration (OX, TSX-V)…
4. Daniel’s Den – 4 unique exploration plays that may find appeal with Silicon Valley types!…
Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect until June 30 only, or login with your username and password to view the rest of today’s Morning Musings…Â
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…
GGI – the selling never ends wtf
Comment by Sameer — June 27, 2016 @ 11:40 am
The chart actually looks very good, Sameer, with 9 being the new support for GGI—if someone wants to sell at support, well, they’ll learn. Same with the Venture.
Comment by Jon - BMR — June 27, 2016 @ 11:54 am
Dolly Varden (DV, TSX-V) halted.
Comment by Jon - BMR — June 27, 2016 @ 12:06 pm
Good to hear Jon!
Comment by Sameer — June 27, 2016 @ 12:44 pm
Jon – should anyone or someone be concerned that they didnt even get oversubscribed?????
Deveron Resources Ltd. (TSX-V: DVR) (âDeveronâ or the âCompanyâ), is pleased to announce that it has completed its previously announced non-brokered private placement financing (the âOfferingâ) compromising of 3,621,000 units (the âUnitsâ) at a purchase price of $0.20 per Unit for gross proceeds of $724,200.
Comment by Patricia — June 27, 2016 @ 1:49 pm
Deveron Completes Private Placement
Deveron Resources Ltd. (TSX-V: DVR) (âDeveronâ or the âCompanyâ), is pleased to announce that it has completed its previously announced non-brokered private placement financing (the âOfferingâ) compromising of 3,621,000 units (the âUnitsâ) at a purchase price of $0.20 per Unit for gross proceeds of $724,200.
Each Unit is comprised of one common share (a âShareâ) and one half common share purchase warrant (a âWarrantâ). Each full Warrant will entitle the holder thereof to purchase one additional Share (a âWarrant Shareâ) at an exercise price of $0.30 per Warrant Share for a period of 24 months from the date of closing of the Offering.
In connection with the closing of the Offering, the Company paid finderâs fees of $28,210 in cash and issued 141,050 non-transferable finderâs warrants (âFinderâs Warrantsâ). Each finder Warrant will entitle the holder thereof to purchase one Share at a price of $0.30 for a period of 24 months from the date of closing of the Offering.
The securities underlying the Units, including the Shares, Warrants, Warrant Shares issuable upon due exercise of the Warrants, Finder’s Warrants and the Shares issuable upon the due exercise of the Finder’s Warrants, will all be subject to a four-month statutory hold period which expires on October 23, 2016. Closing of the Offering remains subject to receipt of all necessary regulatory approvals.
In connection with the Offering, Greencastle Resources Ltd. (âGreencastleâ), (TSX-V: VGN) has subscribed to 875,000 units. Upon completion of the Offering, Greencastle will own 8,631,005 Common Shares of the Issuer representing approximately 56% of the Issuerâs issued and outstanding Common Shares on a non-diluted basis. If Greencastle were to exercise all of its convertible securities it would own 15,099,595 Common Shares, representing approximately 69% of the Issuerâs then outstanding Common Shares, on a partially diluted basis.
A copy of the early warning report that Greencastle will file will be made available on SEDAR.
About Deveron UAS:
Deveronâs new business, called Deveron UAS, is a full-service company providing farmers with the opportunity to increase yields and reduce costs through the use of sophisticated Unmanned Aerial Systems (âUASâ or âdronesâ), sensors, software and analytics. The service offering is targeted at farmers, agricultural retailers and independent agronomists using the most advanced drones and sensors on the market today. The company provides a strong value proposition to farmers through reduced costs and/or increased yields (through the optimization of input costs such as water, fertilizer, pesticides, etc.)
For more information and to join our community, please visit deveronuas.com
David MacMillan
VP Corporate Development
Deveron Resources Ltd.
416-367-4571 ext. 226
Comment by John - BMR — June 27, 2016 @ 2:16 pm
Not at all, Patricia, just the opposite. They didn’t need $800,000 as they’re already generating cash flow. Keeps the dilution down. DVR had actually completed this PP some time ago, the only reason the completion of it is being announced now is that the financing has finally had CSE approval within the context of the drawn-out overall listing approval process. The Venture is like the EU. The bureaucrats at the Venture have these rules that DVR had to do a minimum $2 million financing in order to do the switch from a resource company to a tech company. Of course DVR didn’t need $2 million to start, so the Venture rules would have meant blowing up a great share structure that they had fought so hard to keep perfectly intact since the IPO in late 2012. So that’s why they said, see EU later, Venture, not to mention the fact the change of business process costs much more on the Venture than the CSE. Listing and trading on the CSE requires CSE approval, of course, but companies also need to get the approval of the Venture to de-list from the Venture. I’ll let readers draw their own conclusions as to why it took longer than expected for DVR (and some other companies) to get to trade on the CSE. Finally it looks like DVR has won the battle and is ready for the show.
Comment by Jon - BMR — June 27, 2016 @ 2:33 pm
Thx Jon … I was more concerned about the ‘investment’ VGN has made and how it might affect them.
Comment by Patricia — June 27, 2016 @ 2:58 pm
Nothing but positive for VGN, Patricia…Deveron is not even reflected on its balance sheet, and if DVR starts trading above $1 at some point in the 2nd half, do the math. They hold more than 8 million shares. (VGN’s Nevada gold properties aren’t reflected on the balance sheet, either).
DVR is going to do extremely well. It’s a real business in a hugely growing industry where they’ve carved out a niche.
Comment by Jon - BMR — June 27, 2016 @ 3:02 pm
Hecla makes a $.69 bid for Dolly Varden.
Congrats to the BMR crew for sniffing this one out before anyone else. Good work and much appreciated.
Also in the Kitsault region same as Dolly Varden is Westkam Mining (WKG) which has doubled in price on very high volume coincidentally at the same time it became known that Hecla Mining was interested in consolidating this area. WKG has a very interesting new gold/silver drill target called the Cooler Creek zone discovered as part of the Bonaparte project where back in 1994, an open-cut bulk sample program was completed from surface on the Grey Jay/Crow vein system. A total of 3,700 metric tonnes of mineralized quartz vein material was shipped to the Cominco smelter located in Trail, B.C., yielding approximately 98 kilograms (3,160 ounces of gold) of gold. The shipped ore to the Trail smelter graded 26.5 grams per tonne gold.
I can only speculate that Hecla may be interested in WKG but it is worth keeping an eye on.
Comment by John — June 27, 2016 @ 9:44 pm
WKG project is not even close to Dolly Varden and Kitsault. My apologies. I had it in my mind for some time that WKG was in the Kitsault area. Don’t know where that came from. WKG is still interesting on it’s own but there is NO connection here with Hecla Mining and Dolly Varden.
Comment by John — June 27, 2016 @ 10:14 pm
Thanks, John. This is an old-fashioned, knock ’em down takeover bid for Dolly Varden at 69 cents CASH per share, not one of these “friendly” all-share “plan of arrangements”.
Now, does someone else step up to the plate here and provide some competition, or will Hecla sweeten its offer without a competing bid?
Keep in mind, Hecla has picked up lots more ground in this area through a purchase from a private group as we have already reported. In addition, Auryn Resources (AUG, TSX-V) made an all-share offer for DV neighbor Homestake Resource through a plan of arrangement. It makes sense for ONE company (I would say Hecla) to hold both Dolly Varden and Homestake. Would Hecla make a bid for AUG??
Comment by Jon - BMR — June 28, 2016 @ 2:23 am
More good news this morning, this is shaping up to be a nice day!…Financial Post article on Deveron UAS. Deveron’s going to rock when it starts trading.
financialpost.com/m/search/blog.html?b=business.financialpost.com/investing/investing-pro/meet-deveron-uas-corp-the-countrys-newest-publicly-listed-drone-company&q=Barry
Comment by Jon - BMR — June 28, 2016 @ 2:56 am
It’s getting even better, Critical Elements (CRE, TSX-V) has just been halted…keep an eye on neighbor (contiguous), CLE.
Comment by Jon - BMR — June 28, 2016 @ 3:48 am
Even more good news this morning…GGI starts exploration program in Heart of Gold Camp…interesting about the historical #’s on the shared (KSP) border with Colorado…a 900 m-long trend (“Ernie Creek” trend) returning high-grade gold and copper at surface, up to 2.7 ounces per ton Au and 3.1% Cu….Palm Springs West could prove very interesting. Drilling at King will be key, though.
Comment by Jon - BMR — June 28, 2016 @ 4:16 am
Nice to see Critical Elements detail HELM AG as their project partner. More capital and international interest in the Rose lithium deposit.
For those looking for a map, please see:
https://static.wixstatic.com/media/4345ea_64a6f3af51ad4634804ba4c26620cf35~mv2.jpg
Ryan Kalt
Clean Commodities Corp. (TSXV:CLE)
Comment by ryankalt — June 28, 2016 @ 6:49 am