CHF WEEKLY ROUND-UP: October 23-27, 2023

October is living up to its reputation as a difficult month for equities. After a second down week for Canadian markets, the TSX is now lower than it has been in more than a year. Broad-based selling continues. U.S. markets are also experiencing a downturn, following the worst one-day drop on Nasdaq since February. This slump mirrors the European market’s decline. We hope that in November, we could even see a rally to the end of the year.

The Bank of Canada (BoC) announced its decision to keep the policy interest rate at 5%. Despite inflation hovering above the BoC’s target range of 2%-3%, the economy is showing signs of slowing down, even technically on the edge of recession. While additional hikes are not expected in 2023 a potential rate cut is not anticipated until late 2024, unless a more severe recession occurs.

The European Central Bank left its deposit interest rate at 4%, unchanged at its meeting on Thursday, bringing an end to a series of hikes in the last ten meetings that started in July last year. Recently released economic data has given the impression of a Eurozone economy in fragile health raising the possibility of a mild recession by the end of 2023.

The U.S. economy grew at 4.9% on an annual basis, a startling pace in the third quarter, but the Fed is expected to continue holding rates steady. No increase is expected from the Bank of England next week either, in the face of growing worries about a UK recession.

Finally, Louisiana Congressman Mike Johnson’s appointment as Speaker of the House has resolved three weeks of political uncertainty in Washington. Maybe Congress can get functioning again.

The U.S. dollar continues to be strong, still near highs for the year. Gold (NY spot) remains elevated at $1,988 on the Middle East tensions. Silver is a bit weaker at $22.87. Base metals continue to struggle to make price gains and remain at lows on the year. Uranium rebounded slightly to $73/lb. Battery metals could not make progress either. Lithium fell to $22.48/kg a new low on the year even though there was much M&A activity in the sector, with a major deficit of supply predicted for 2025. Oil seems to be caught between concerns of lower demand and shipping restrictions from the middle east; WTI was down by $4 on the week at $84.22.

Certain sectors are looking oversold and with interest rates looking like they have peaked, some of the interest-rate-sensitive stocks may be worth consideration.

It has been a productive week for our clients, even as we are preparing for a more active season. We are pleased to present to you our round-up of their news released between October 23-27, 2023.

RECENT CLIENT MEDIA

Allan Barry Laboucan Highlights Sokoman Minerals Corp. on Rocks and Stocks News Show

On October 24, 2023, Nuinsco Resources Limited (CSE: NWI) announced the initial results of a review of high-grade niobium target areas at its Prairie Lake critical minerals and phosphate project located near Terrace Bay, Ontario. Niobium is viewed as a potential by-product or co-product to the phosphate and rare earth element mineralization occurring at the Project.

The current review is examining the large analytical inventory available to the Company from its historic and current exploration and evaluation activities. Work programs commissioned by the Company have produced a database containing 7,437 geochemical analyses from trenches and diamond drill holes, comprising a total of 10.5 kilometres of sampling in the richly endowed rocks of the Project. In total 9.5% of the samples from drill holes and trenches have assayed greater than 0.25% Nb₂O₅, with analyses peaking at 1.013% Nb₂O₅. Niobium grades of 0.25% are distinctly anomalous and point to the potential to define domains of elevated grade within the Project.

Zone of Niobium enrichment within Mineral Resource envelope

Niobium is identified as a Critical Mineral under the Canadian Minerals and Metals Plan and Canadian Critical Minerals Strategy. Niobium is found throughout the Prairie Lake intrusion where it occurs primarily in the mineral pyrochlore. Pyrochlore is a complex oxide mineral [(Na, Ca)₂Nb₂O₆(OH,F)] composed of niobium, sodium, and calcium that forms brown to black, glassy octahedral crystals and irregular masses.

The presence of the higher-grade niobium bearing domain within the recently released, very-large mineral-resource estimate envelope of phosphate – rare earth element mineralization on the Project is an additional indication of the significance of the Project and the mineral and economic potential.

On October 25, 2023, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) President and CEO, Timothy Froude spoke with noted mining commentator, Allan Barry Laboucan, on his Rocks and Stocks News program. Tim addressed the great deal Sokoman and Benton have made with Piedmont Lithium Inc. for their lithium project to be funded for up to $ 12 million in exploration. See Sokoman press release of October 11, 2023, for details of the Agreement. This will allow Sokoman to return to its primary focus on gold exploration.

Watch the interview HERE.

On October 26, 2023, Canadian Overseas Petroleum Limited (CSE: XOP) (LSE: COPL), announced the issuance of 8,265,203 common shares (the “Shares”) settling $0.3 million of payables to arm’s length creditors of the Company at 2.6p per share. Following the issuance of Shares, the Company has a total of 848,468,729 common shares issued and outstanding.

In accordance with the usual practice, applications for the listing of these shares for trading, on the London Stock Exchange’s main market for listed securities, will be made within the next 12 months.

On October 24, 2023, Tenet Fintech Group Inc. (CSE: PKK) (OTC PINK: PKKFF) announced that it has signed a new agreement with the Industrial Bank Co. Ltd. to add payment processing, financing, and other Cubeler® Business Hub related services to their existing service agreement following a tighter integration of the Cubeler® Business Hub’s Gold River module to Industrial Bank’s (CIB) systems. As China’s 8^th largest bank, CIB’s potential to lend and extend credit brings a completely different element to the Cubeler® Business Hub in China.

On October 26, 2023, Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) announced the results of the special meeting of shareholders held Thursday, October 26, 2023. At the Meeting, shareholders approved the increase of the size of the Board of Directors to five, and elected Yves C. Renaud and Sanjay Sharma to the Board. In addition, the Company received “majority of the minority” shareholder approval for the issuance of CAD$7,720,000 of securities of the Company to certain “related parties” of the Company in connection with a financing of the Company. Please see the press releases dated June 29, 2023, August 18, 2023, and September 8, 2023, as well as the Meeting materials

Mayco Quiroz, who was elected to the Board of Directors of the Company on June 27, 2023, resigned his position effective as of the close of the Meeting and was appointed to the position of Chief Operating Officer of the Company. Mr. Quiroz is a Chartered Professional Accountant (CPA) specializing in strategic and operations management, legal and financial compliance, treasury management and financing. He brings close to 25 years of professional experience, including 15 years working with Fintech companies, to Tenet’s executive and leadership team. Mr. Quiroz is expected to work in close collaboration with Tenet CEO Johnson Joseph and Tenet Chief Analytics Officer, Dr Luis Rocha on the development and commercialization of the Company’s data-driven products through Tenet’s Tenoris3 subsidiary.

Tenet’s Board of Directors is now comprised of three independent directors, namely Jean Leblond, Yves C. Renaud, and Sanjay Sharma, and two non-independent directors: CEO Johnson Joseph, and Liang Qiu who serves as CEO of Tenet’s Chinese operations.

Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) President and CEO, Timothy Froude will be making a presentation on the Kraken Lithium Discovery, Southwestern Newfoundland at 9:30 AM PST on November 02, 2023, to the Mineral Resources Review 2023 Conference, Newfoundland and Labrador’s Premier Mineral Exploration and Mining Conference and Exhibition, that is being held at the Delta Hotel: Harbourview Ballroom, in St John’s, Newfoundland (in-person attendance only.)