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 $1,289 and $1,300 so far today…as of 7:00 am Pacific, bullion is off $6 an ounce at $1,292…Silver has added 3 pennies to $16.42…Nickel, enjoying a powerful week, is up 2 more cents at $6.93…Copper and Zinc are flat at $3.11 and $1.40, respectively, while Cobalt is steady above $41 a pound…Crude Oil (WTI) has retreated 51 cents to $66.53 while the U.S. Dollar Index has gained one-quarter of a point to 94.19 after a strong jobs report and other data…the Institute for Supply Management (ISM) has reported that its latest manufacturing data showed a reading of 58.7% for May, up from April’s reading of 57.3% – more evidence that the American economy is performing very well…“We are restoring our wealth at home,” President Trump declared this morning…overseas, some relief among investors as Italy’s anti-establishment Five Star Movement and the far-right League clinched the approval of Sergio Mattarella, the President, for the launch of a populist government, all but ending a political crisis that has gripped the country for nearly 3 months and spooked investors…
2. Sales of American Eagle Gold coins in May increased by 433% from April for the highest May sales since 2015, according to fresh data released this morning…U.S. Mint sales of American Eagle Gold coins totaled 24,000 ounces in May, up from 4,500 ounces in April…meanwhile, May sales of U.S. Mint American Eagle Silver coins fell 58.5% from April to 380,000 ounces, the lowest May reading in 13 years…an abundance of Silver in the market isn’t helping…
3. The differential between Brent and WTI increased to double digits yesterday for the first time since March 2015…the widening in this spread is largely happening amid growing U.S. production and bottlenecks in pipeline capacity in the country…U.S. Crude output rose in March by 215,000 barrels a day month-on-month, to a record 10.47 million bpd, according to the U.S. Energy Information Administration, but the means to transport that Oil has failed to keep pace (Canada’s pipeline capacity problem is even worse)…the capitulation of the WTI-Brent arbitrage is the market giving its clearest signal yet that U.S. pipeline capacity is being maxed out…Americans are working feverishly to fix that…
4. While Canada nationalizes a pipeline and economic growth and investment decline, it’s a much different story south of the border where the Labor Department reported this morning that U.S. private sector continues its torrid pace of job creation…non-farm payrolls jumped more than expected in May, by 223,000, while the unemployment rate fell to 3.8% – its lowest in nearly 20 years…full-time jobs rose an eye-popping 904,000 for the month while part-time positions declined by 625,000…unemployment for blacks also continues to decline with the rate falling to a record low of 5.9%…job prospects were never this good in the U.S. for blacks under the Obama administration (of course you won’t that on CNN)…meanwhile, the closely watched average hourly earnings metric for all workers rose 0.3%, in line with expectations…that translates to an annualized rate of 2.7%, up one-tenth of a point from April…
5. Canada Cobalt (CCW, TSX-V) has been one of the top-performing stocks on the Venture this week with the company approaching the start of underground drilling at its Castle mine in the Northern Ontario Cobalt Camp – the first company in Canada to drill underground for high-grade Cobalt during this “new era” for the metal (the last company in North America to drill underground for Cobalt – US Cobalt in February – got bought out 3 weeks later by First Cobalt for an implied valuation of $150 million)…what Canada Cobalt reported yesterday, however, was a major metallurgical breakthrough that is sure to draw further investor interest…using CCW’s proprietary Re-2OX process, SGS Lakefield has recovered 99% of Cobalt and 81% of Nickel from gravity concentrates while also removing 99% of the arsenic…arsenic in the complex ores of the Northern Ontario Cobalt Camp has been a longstanding issue and a detriment to Cobalt production, so this represents a significant new development and another competitive advantage for Canada Cobalt…additional stages of Re-2OX,overseen by Canada Cobalt adviser Dr. Ron Molnar, are expected to produce favorable recoveries for precious metals (Silver and Gold) while also achieving a Chinese National Standard Cobalt sulphate and/or Cobalt hybrid formulations…Cobalt test products will be evaluated by potential battery-sector clients who are in discussions with the company’s marketing representative based in China…CCW is up 2 cents at 43 cents as of 7:00 am Pacific and bullish chart indicators suggest a near-term challenge of all-time highs in January in the mid-50’s..
6. The Dow is up 219 points as of 7:00 am Pacific, thanks to this morning’s strong jobs report…in Toronto, the TSX is up 21 points while the Venture is flat at 761…Garibaldi Resources (GGI, TSX-V) and GT Gold (GTT, TSX-V) should give the Golden Triangle a lift next week as drilling commences at Nickel Mountain after a short weather delay while crews now mobilize at GT Gold’s high-grade Saddle South Gold discovery, a 2-hour drive north of the Eskay Camp…Probe Metals (PRB, TSX-V) has increased its previously announced private placement (flow-through and non-flow-through) to $24.69 million to further advance the company’s Val d’Or East Gold Project in northwest Quebec…Datametrex AI (DM, TSX-V) was halted at the open this morning, pending news…
7. With the federal government’s decision to buy Kinder Morgan’s (KML, TSX) Trans Mountain pipeline dominating the political agenda in Ottawa, and creating plenty of controversy across the country, federal legislation that would overhaul Canada’s environmental assessment process is back in the House of Commons, with Conservatives and industry groups warning that it could be a “death knell” for natural resource projects…investors have many reasons to be concerned, especially since this legislation comes from a government obsessed with climate change and gender issues that shaped Justin Trudeau’s disastrous National Energy Program (NEP 2.0 may even inflict more damage on Canada than his father’s National Energy Program in the early 1980’s)…a new bill, C-69, would replace sweeping environmental assessment reforms passed by the former Conservative government in 2012…it aims to “broaden the scope” of environmental assessments while falsely claiming to shorten timelines…it would create a new “Impact Assessment Agency of Canada”, to replace the Canadian Environmental Assessment Agency, which would lead all major assessments…Bill C-69 is another federal government boondoggle and if passed in its current form will further Canadian competitiveness in the resource sector…
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Maybe Nickel and other metal credits from CCW will be helpful for CCW SH’s and the nickel deficit?
Comment by donald — June 1, 2018 @ 8:41 am
Imagine if Agnico Eagle had been able to exploit Re-20X and recover all the metals at Castle in the 1980’s, donald…they targeted just high-grade Silver and that’s all they could get payment for…they know about the Cobalt but back then, much lower Cobalt prices and poor recovery techniques…there’s also Gold in the system that they didn’t even know about, in addition to Nickel…anyway, by just mining the very high-grade Silver, they left a lot of Cobalt behind as the best Cobalt is contained around the lower grade Silver (3 ounces and less)…Re-2OX is a major game-changer…
Comment by Jon - BMR — June 1, 2018 @ 9:46 am
CCW doesn’t just have Castle either. Agnico probably kicking themselves right now. With all that silver and other elements besides cobalt, going to have a very economic mine. I doubt silver/gold prices going to be at these levels in 2-3 years. Lol.
Comment by BigBid — June 1, 2018 @ 10:03 am
Maybe the govenment will fund reOx 2 pilot plant because process is environmentally friendly?
Comment by donald — June 1, 2018 @ 11:09 am
Good poin, donald…Canadian government has a huge fund ideally suited for a pilot plant of this sort…
Comment by Jon - BMR — June 1, 2018 @ 12:13 pm
CCW on fire going into the close…
Comment by Jon - BMR — June 1, 2018 @ 12:45 pm
200,000 traded in last1/2 hour CCW
Should interesting monday…
Thanks BMR
Comment by Silverhook — June 1, 2018 @ 1:12 pm
June is going to be a fun month , with the stars aligned for so many BMR recommendations. Finally GGI pp is apoproved.
“Garibaldi Resources 3,896,350-share private placement
Garibaldi Resources Corp (C:GGI)
Shares Issued 106,562,976
Last Close 6/1/2018 $3.23
Friday June 1 2018 – Private Placement
The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement of flow-through and non-flow-through common shares announced on April 17, 2018, and May 7, 2018.
Number of securities:3,896,350 common shares Purchase price:$3.35 per common share Number of placees:19 placees Agent’s fee:EMD Financial Inc., cash payment of $150,138.63
© 2018 Canjex Publishing Ltd.
Comment by donald — June 1, 2018 @ 2:28 pm
Exchange excepted GGI’s private placement. Ready to roll for next week
Comment by Weatheritout80 — June 1, 2018 @ 2:30 pm
Finally. GGI’s PP accepted by the Venture. Now the fun can really begin. Next week should be awesome.
Comment by pole — June 1, 2018 @ 2:38 pm
Pretty boring these days BMR…not sure you’ll have enough to write about in the Sizzler. SIKE!
Comment by BigBid — June 1, 2018 @ 4:30 pm
It’s a selective market, BigBid, about being in the right stocks at the right time. Certainly not a boring day or week for Canada Cobalt! More to come. Great week for GT Gold, I expect a key breakout next week, and GGI is about to rock! Boring? Not at all! Some sub-10 cent plays are going to start to wake up, too, like IMR near Canada Cobalt.
Comment by Jon - BMR — June 1, 2018 @ 4:50 pm
Haha, was joking there. Very exciting times ahead!
Comment by BigBid — June 1, 2018 @ 5:11 pm
Graph Blockchain Announces RTO with Reg Tech
V.DM | 6 hours ago
Canada NewsWire
TORONTO, June 1, 2018
TSX Venture Exchange
Symbol “DM ”
TORONTO, June 1, 2018 /CNW/ – Datametrex AI Limited (the “Company” or “Datametrex”) (TSXV: DM, FSE: D4G) is pleased to announce that Reg Technologies Inc. (the “Company” or “RegTech”) and Graph BlockChain Limited (“GBC” or “Graph Blockchain”) announce that they have entered into a non-binding Letter of Intent (the “LOI”) which outlines the general terms and conditions pursuant to which RegTech and GBC have agreed to complete a transaction that will result in RegTech acquiring all of the issued and outstanding securities of GBC (the “Transaction”) pursuant to a reverse-takeover (“RTO”), resulting in pre-financing valuation over C$39 Million.
image: https://mma.prnewswire.com/media/699992/Datametrex_AI_Limited_Graph_Blockchain_Announces_RTO_with_Reg_Te.jpg
The LOI was negotiated at arm’s length and is effective as of May 31, 2018. GBC is engaged in the business developing state of the art private blockchain solutions for corporations and government agencies and is a joint venture company of Datametrex AI Limited (TSX V: DM) and its San Francisco based joint venture partner Bitnine Global Inc. (“Bitnine”).
GBC had previously filed a Non-Offering prospectus (the “NOP”) on March 19, 2018 with the Ontario Securities Commission (“OSC”) in connection with proposed distribution of the common shares of GBC held by Datametrex to its shareholders and a proposed concurrent listing on the Canadian Stock Exchange (“CSE”). On May 28, 2018, GBC withdrew its prospectus application from the OSC. The Company decided to withdraw the NOP in order to take GBC public via an RTO as it will allow GBC to do a concurrent financing and set a valuation. GBC has matured tremendously since the decision to go public via NOP was made, including filing four patents in total with the United States Patent and Trademark Office (“USPTO”) and Korea Intellectual Property Office (“KIPO”), it has signed contracts with multi-billion dollar conglomerates (see directly below for press releases), completed and delivered prototype solutions and as a result, demand to participate in a financing has emerged. It is management’s view that an RTO will better position all stakeholders as GBC transitions to be a stand alone public company, while at the same time providing GBC to additional growth capital. Prototype Solution contracts include:
February 12 2018 – Contract for Electric Power and Utility Project
March 19 2018 – Contract With Insurance Company, KB Life Insurance Co, Ltd.
May 30 2018 – Graph Blockchain Receives First Payment From IBM
Terms of the Transaction
It is currently anticipated that the Transaction will be effected by way of merger, amalgamation, share exchange, plan of arrangement, business combination or other similar form of transaction as is acceptable to GBC and RegTech (the “Parties”).
RegTech and GBC will enter into a definitive agreement in respect of the Transaction (the “Definitive Agreement”) pursuant to which the common shares of GBC will be exchanged for 123,333,333 common shares in the capital of RegTech (collectively, the “Resulting Issuer Shares”) at a deemed price of C$0.30 per Resulting Issuer Share on a pre-Consolidation (defined below) basis and pursuant to an exchange ratio to be agreed to by the Parties in accordance with the terms of the Definitive Agreement. The aggregate pre-financing valuation on the proposed Transaction will result in a combined market capitalization of C$39,079,890. In addition, GBC will have the right but not the obligations to complete a private placement of common shares at a price per share of C$0.30 for maximum gross proceeds of C$10,000,000 concurrent with the Transaction.
Datametrex currently holds an equity interest of 29.5% in GBC and, as a result of the closing of the proposed Transaction, Datametrex will hold an equity interest of approximately 28% in the resulting issuer. Datatmetrex understands that there is currently no commitment for an equity financing by GBC, however should GBC decide to arrange an equity financing concurrently with the closing of the proposed Transaction, Datametrex’s equity interest in the resulting issuer would be diluted on a pro rata basis.
On or immediately prior to the completion of the Transaction, it is anticipated that: (i) RegTech will effect a name change to Graph Blockchain Inc. or such other name as may be determined by the board of directors of GBC; and (ii) RegTech will consolidate (the “Consolidation”) its issued and outstanding common shares (the “RegTech Shares”) on the basis of one new RegTech Share for every ten (10) RegTech Shares issued and outstanding on the effective date of the Consolidation.
It is contemplated that upon exercise of the GBC Warrants (defined below), the holders thereof will be issued Resulting Issuer Shares.
Completion of the Transaction is conditional upon other things: (i) the Parties and, if required, the shareholders of GBC (the “GBC Shareholders”) entering into the Definitive Agreement; (ii) the satisfactory completion of all legal, business and technical due diligence to the satisfaction of each party; and (iii) the receipt of all required consents and approvals, including without limitation, the approval of the TSX Venture Exchange (the “TSXV”) or the Canadian Securities Exchange (the “CSE”, and any one of the TSXV and CSE , the “Exchange”) to list the Resulting Issuer Shares for trading, and the approval of the GBC Shareholders and, if required, the shareholders of RegTech (the “RegTech Shareholders”), as may be necessary to complete the Transaction.
Prior to, and as a condition of the completion of, the Transaction, RegTech will complete a private placement of RegTech Shares to raise minimum gross proceeds of C$300,000 at a price of C$0.15 per RegTech Share (the “Offering”). The net proceeds from the Offering will be used to pay the costs of the Transaction and working capital purposes. Further details regarding the Offering will be included in a subsequent news release once additional details become available.
Signing of the Definitive Agreement is expected to occur on or prior to June 15, 2018. The Parties have agreed to complete the Transaction no later than August 31, 2018.
Upon completion of the Transaction, it is the intention of the Parties that the Resulting Issuer will continue to focus on the current business and affairs of GBC.
Completion of the Transaction is subject to a number of conditions, including but not limited to, Exchange acceptance. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular, listing or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon.
Insiders, Officers and Board of Directors of the Resulting Issuer
The board of directors of the Resulting Issuer upon completion of the Transaction is expected to consist of a minimum of three directors, of which two will be independent, all of whom will be appointed by GBC. In addition, it is anticipated that upon completion of the Transaction, the current management of GBC will become the management of the Resulting Issuer as set out below. In addition, it is anticipated upon completion of the Transaction, that Datametrex AI Limited and Bitnine Global Inc. will be insiders as a result of holding more than 10 percent of the issued and outstanding Resulting Issuer Shares.
Name
Office
Andrew Ryu
Chairman and Chief Executive Officer
Peter Kim
President & Chief Operating Officer
Jeff Stevens
Chief Strategy Officer
Steve Kang
Chief Financial Officer
Niv Majar
Controller
Todd Shapiro
Director
David Posner
Director
RegTech will issue an additional news release including further information with respect to the incoming board of directors and other officers of the Resulting Issuer as soon as such titles are formally determined.
About RegTech
RegTech was incorporated under the provisions of the Business Corporations Act (British Columbia) with its registered and head office in Vancouver, British Columbia. RegTech is a “reporting issuer” within the meaning of the, Securities Act (British Columbia) and Securities Act (Alberta) and is currently subject to a cease trade order and its securities are not currently listed on any Canadian stock exchange.
About Graph Blockchain
GBC is a private company, incorporated under the laws of Canada. GBC has offices in Toronto, Ontario, Silicon Valley, California, and Seoul, Korea. GBC is a Blockchain development company that provides high performance Blockchain solutions that include graphic data analysis and consulting services, implementation of data mining analysis through the use of graph databases and speed enhancements of Blockchain control systems for corporations and government agencies.
About Datametrex AI Limited
Datametrex AI Limited is a technology focused company with exposure to four exciting verticals. Big Data, collecting data from retail point of sales environments. Artificial Intelligence and Machine Learning through its wholly owned subsidiary, Nexalogy (www.nexalogy.com). Implementing Blockchain technology for secure Data Transfers through its joint venture company, Graph Blockchain (www.graphblockchain.com). Industrial scale Cryptocurrency Mining through its wholly owned subsidiary, Ronin Blockchain Corp (www.roninblockchain.com).
Additional information on Datametrex is available at: http://www.datametrex.com
To stay informed about Datametrex, please join our Investor Group on 8020 Connect http://bit.ly/2fPUNwF for all upcoming news releases, articles comments and questions.
Read more at http://www.stockhouse.com/news/press-releases/2018/06/01/graph-blockchain-announces-rto-with-reg-tech#ie5CzD2j5KLE5v86.99
Comment by robtr31 — June 1, 2018 @ 6:48 pm
Jon point #5 – the Chinese have a huge fund ideally suited for a pilot plant as well:) If someone makes a bid for CCW do they get the RE-20X process as well? Seems to me that a process that valuable won’t be ignored for much longer.
Comment by DBReese — June 1, 2018 @ 7:26 pm
Indeed they would, DBReese, as Re-2OX is 100%-owned by Canada Cobalt…US Cobalt got taken out for $150 million 3 weeks after it started drilling underground in Idaho, and it doesn’t have Canada Cobalt’s metallurgical savvy or its own recovery process.
Comment by Jon - BMR — June 1, 2018 @ 10:22 pm
Jon
Based on US Cobalt being bought out at 150 mil what in your opinion does that make CCW worth if it was bought out today?
Thanks
Comment by Gregh — June 2, 2018 @ 8:23 am
What it shows, gregh, is the new upside in Canada Cobalt when u look at US Cobalt and First Cobalt and consider Canada Cobalt’s specific competetive advantages in the Northern Ontario Cobalt Camp: 1) Underground access and underground drilling; 2) Re-2OX, a solution to separating and recovering the metals while removing the arsenic; 3) Share structure – other players have blown up their share structures, CCW hasn’t; 4) First Nations – CCW’s history in the Camp has allowed them to build strong relationships with local First Nations – they want to do business and can help make a lot of things happen for Canada Cobalt.
First Cobalt commands a market cap well in excess of $200 million, 8 x CCW, yet Canada Cobalt is ahead of them in some areas in the Northern Ontario Cobalt Camp. That’s why, I think, Trent Mell went after US Cobalt, to better justify his market valuation. However, he doesn’t have underground access in the Cobalt Camp, nor does he have a way to deal with the ores like Canada Cobalt has. I would definitely take CCW’s Re-20X process over the “refinery” FCC has been boasting about because that refinery has been an albatross around the necks of other operators and will be very expensive to fix and upgrade – engineers are looking at it now. Re-20X works and it skips the smelting process.
Underground drilling success would send Canada Cobalt through the roof, and sampling underground to this point has been very encouraging – I see the potential for better numbers than what US Cobalt has delivered.
Comment by Jon - BMR — June 2, 2018 @ 9:00 am
MOON, one of the sub 10 cent plays that are about to wake up? Or are you talking more likely IMR and DM?
Comment by Tycoon777 — June 2, 2018 @ 11:03 pm
Our Sunday Sizzler will reveal that, Tycoon777…
Comment by Jon - BMR — June 3, 2018 @ 9:19 am