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As we enter the second half of 2024 things could get very interesting. Third-quarter markets usually experience slower activity and lower volumes, leading to potential volatility. Despite this, underlying market trends continue, presenting opportunities for trading.
The Bank of Canada is set to announce its interest rate on July 24, 2024. While cautious about further cuts due to potential impacts on exchange rates, there's an upside to consider. Despite the Canadian dollar's decline against the U.S. dollar, which has made US-origin products pricier, this has also kept domestic inflation in check. Moreover, Canadian stock markets have shown strong performance, with the TSX reaching record highs and offering attractive valuation opportunities compared to the S&P 500.
The next Federal meeting is on July 30-31, 2024. While officials are expected to maintain the benchmark interest rate at the comparatively high 5.25% to 5.5% range approved in July of 2023, further progress on inflation has been seen in the data, and this could lead to changes in their policy statement that may pave the way for a September rate cut. Federal Reserve Chair Jerome Powell said on Wednesday the U.S. central bank will make interest rate decisions "when and as" they are needed, pushing back on a suggestion that a September rate cut could be seen as a political act ahead of the fall presidential election. The results of European elections and the size and cost of U.S. Government deficits are injecting uncertainty.
The U.S. dollar came under heavy selling pressure as an immediate reaction to this week’s soft U.S. inflation data. Markets turned strongly positive, with the S&P 500 making a series of new highs this month. Analysts are raising their year-end targets for the index. The tech-driven bull market continues.
The $USD weakened on Thursday but remains up 2.85% year to date. Gold reacted to the weakening and ran up to $USD2,430/oz. The market remains hot, and prospects of interest rate cuts have increased. Prices for Senior producers rebounded sharply. Junior mining issuers are at multi-year lows compared to the gold price, but these bargain values may break out at any time.
Base metals recovered to some degree on the back of the weakness in the $USD late in the week but were muted relative to the response in precious metals. Questions remain about the state of Chinese manufacturing demand.
Battery and Critical materials continued at low levels although graphite made some gains. Demand for EV’s remains at lower levels than required for materials markets to improve, and China’s slowdown in domestic demand weighs on industrial metals.
Our clients, who continue to execute their strategic plans, have made progress. We are pleased to present our round-up of their news released between July 1-12, 2024.
Mining
On July 8, 2024, Nuinsco Resources Limited (CSE: NWI) announced the appointment, effective immediately, of Mr. Alastair Neill to the board of directors of the Company.
Paul Jones, Nuinsco’s CEO, stated: “We are pleased that Mr. Neill has agreed to join Nuinsco’s Board of Directors. His knowledge, expertise and relationships in the specialty and critical minerals business, and in rare earth processing and marketing, will enhance Nuinsco’s ability to advance its existing and future assets, particularly the Company’s Prairie Lake Critical Minerals project located approximately 50 kilometres northwest of Marathon, Ontario.”
Mr. Neill has been engaged in the specialty and critical business for almost 30 years. This experience makes him a tremendous resource to the Company as the critical minerals sector undergoes rapid evolution and expansion. His knowledge and understanding of the complex critical metals marketplace will be of enormous value and will provide context for decision-making. Mr. Neill has held senior management positions responsible for the sale and purchase, product development, marketing, R&D, and business development of several rare earth enterprises in North America and Asia, including spending 10 years on-site in China and Mongolia.
The Prairie Lake Critical Minerals project is a large, well-located source of critical minerals located in the heart of North America. It is a potential source of elements needed for applications in agriculture, transportation, power distribution, energy storage, green technologies, and a host of other sectors. It offers immense value in efforts to secure the critical minerals supply chain; an issue identified by Canadian and other governments and addressed with incentives and programs to encourage development of the domestic critical minerals sector.
On July 11, 2024, Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) reported that the second round of surveying using Novamera Inc.'s calibration tool has been completed at the Footwall Splay. In May 2024, Novamera surveyed three drill holes (MH-21-160, 163, 164) to expand the 3D modelling of the Footwall Splay 20 m to the north of the previous survey and confirm the location of the high-grade gold veins over a ~25 m strike length to 100 m depth. The next steps will be to identify an area for a 1000 cubic metre bulk sample and to conduct an economic analysis of the planned work, with more drilling possibly required to verify the model.
The Novamera program is focused on modelling the near-surface portion of the Footwall Splay Zone for a bulk sample using their proprietary drilling and bulk sampling technology. Once all data has been compiled the permitting will begin with the timing of a bulk sample dependent upon rig availability.
The Company is also looking at the Western Trend as a site for a bulk sample, to be acquired by conventional methods (drill and blast), focusing on the two areas proximal to MH-18-08 that gave two near-surface intersections, including 1.05 m of 207.51 g/t Au from 8.50 m downhole, and 2.28 m of 42.36 g/t Au from 33.07 m downhole and historical hole MH-02-16 which returned 1.47 m of 28.50 g/t Au including 0.47 m of 87.23 g/t Au from 13.72 m downhole. Drilling to extend these intersections up-dip to the surface and along the strike will take place immediately. Permits for trenching to expose the gold mineralization, planned for August, have been submitted.
The Moosehead Summer Drill Program is ongoing, focusing on the Eastern Trend and the 552 Zone. Five holes, totalling 740 m, in the northern extension of the Eastern Trend where historical drilling, intersected quartz veining similar in style to gold-bearing veins at the main Eastern Trend, with low-grade gold values. This area is prospective for Eastern Trend, higher grade gold mineralization. All results are pending. Three holes totalling 664 m were completed on the 552 Zone, with the second hole, MH-24-601, the deepest hole on the zone, cutting 11.5 m of the structure from 238.55 - 249.70 m, including a 2.1 m quartz breccia vein with 2 to 5% disseminated / stringer pyrite and arsenopyrite. Assays are pending. The 552 Zone has been drilled over a 150 m strike length and to a downhole depth of 250 m, with the zone remaining open.
Technology
On July 2, 2024, Visionstate Corp. (TSXV: VIS) announced the receipt of conditional acceptance from the TSX Venture Exchange on the offering of up to 25,000,000 units of the Company at a price of $0.02 per Unit for gross proceeds of up to $500,000 as previously announced on June 19, 2024. Each Unit is comprised of one (1) common share of Visionstate and one (1) Common Share purchase warrant, whereby each Warrant entitles the holder to purchase one (1) additional Common Share at a price of $0.05 per Common Share for a period of two (2) years following the date of closing. If the closing price the Common Shares is equal to or exceeds $0.07 per Common Share for greater than twenty (20) consecutive trading days, then the warrant term shall automatically accelerate to a date that is thirty (30) calendar days following the date a press release is issued by the Company announcing the reduced warrant terms, without further notification made by the Company. The Common Shares and Warrants comprising the Units are subject to a four-month hold period from the time of closing of the Offering. Visionstate has closed on the initial tranche of subscriptions of 9,515,000 Units at a price of $0.02 per Unit for gross proceeds of $190,300, which includes 2,425,000 Units issued to certain insiders of Visionstate. The net proceeds from the sale of units will be primarily allocated towards the development and commercialization of new products designed to enhance the Company's IoT solutions and expand its market reach. Visionstate remains committed to delivering IoT technology solutions that drive operational efficiencies and improve customer experiences across various industries.
Fintech
On July 5, 2024, Tenet Fintech Group Inc. (CSE: PKK) (OTC Pink: PKKFF) provided an update related to its ongoing private placement financing of units of convertible debentures and warrants. The Company reiterated its intention to close the Financing as quickly as possible as it continues to try to accommodate a group of strategic investors who have requested an extension to the deadline previously appointed by Tenet to close the Financing. The deadline to close on the minimum of $5,000,000 and maximum of $10,000,000 remaining on the Financing has now been set for August 15, 2024, with a first tranche of at least $2,500,000 to be closed no later than July 19, 2024. The Company notes that all other terms and conditions of the Financing will remain the same despite the recent drop in the Company's share price.
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