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Canadian Securities Exchange Builds on Strong 2019 with Biggest Plans Yet

CSE issuers felt the market tap on the brakes in 2019, as investors finally took a breather following years of growing financings, soaring market caps and record trading activity. The numbers for the year through November were still solid, mind you, as details below make clear, and new trends are emerging as the market continues its endless search for the best ways to deploy capital.

Look no further than the CSE Composite Index for an accurate barometer of the markets mood. Thousands of variables influence its closing value each day, but mixed corporate performance in the cannabis sector and seasonal tax-loss selling are probably the two biggest factors behind the benchmark shedding some 39% compared to the beginning of 2019.

Then again, report strong earnings or other robust news and youll still see your share price head north in a hurry, as multiple issuers have recently found to their delight. The market is doing what it is supposed to do – reward the companies farther along the d..

CSE issuers felt the market tap on the brakes in 2019, as investors finally took a breather following years of growing financings, soaring market caps and record trading activity. The numbers for the year through November were still solid, mind you, as details below make clear, and new trends are emerging as the market continues its endless search for the best ways to deploy capital.

Look no further than the CSE Composite Index for an accurate barometer of the markets mood. Thousands of variables influence its closing value each day, but mixed corporate performance in the cannabis sector and seasonal tax-loss selling are probably the two biggest factors behind the benchmark shedding some 39% compared to the beginning of 2019.

Then again, report strong earnings or other robust news and youll still see your share price head north in a hurry, as multiple issuers have recently found to their delight. The market is doing what it is supposed to do – reward the companies farther along the development curve with higher valuations.

More than one analyst is suggesting there is plenty of opportunity to be had in the current environment, and well find out if thats the case as we progress through 2020. But key to the future is the year were about to wrap up and some important developments upcoming at the CSE to make the issuer experience even better.

The return of the initial public offering, or IPO, is definitely an important theme. Through the first 11 months of 2019, 30 companies listed on the CSE through initial public offerings. That compares to just eight on all exchanges in Canada combined in 2016. And a double-digit list of IPO applications to the CSE is making its way through the approvals process, so there are more to come.

A shift in regulatory guidance encouraging companies to list by means of an IPO deserves a good deal of credit for the trend. And IPO issuers enjoy many benefits unique to their listing path, including greater control over share structure and having their documentation reviewed by both the CSE and the provincial securities commission in their jurisdiction of registration. That extra layer of regulatory approval doesnt hurt when it comes time to approach potential investors for new capital.

Speaking of financing activity, it is slower so far in 2019 compared to the record pace of 2018, but still healthy by any measure. Year-to-date, CSE issuers have raised a total of $2.8 billion, as compared to $5 billion for the same January-to-November period in 2018. Another trend showing up is the increasing presence of convertible debt as a percentage of total funds raised, and institutional investors stepping up to the plate to buy these new instruments.

Volume and value traded numbers remained strong on balance, which is important when the capital raising environment tightens. Year to date at the end of November, trading volume was down 33%, but the value of trade was higher by 8.1%, the latter number climbing to a record $20.5 billion.

“Although the US and Canadian cannabis sectors are having their challenges attracting capital under the present market conditions, we have seen an important revival in the gold exploration sector, and an increasing investor focus on the business of esports,” notes Richard Carleton, the CSEs Chief Executive Officer. “We are also seeing the arrival of cannabis and hemp companies from overseas for the first time; a response to the outreach efforts weve made over the last few years.”

The CSE began visits and events in Israel, for example, a little over two years ago. The country has a world class “start-up culture,” but lacks the investment infrastructure to back companies in the cannabis space. And the results are starting to come through.

In the second half of 2019, the CSE welcomed its first Israeli issuers – three over six weeks, as a matter of fact. And the outreach to the business community in Israel will continue, now that multiple issuers have joined the exchange and can attest to the ease of working with the CSE and the benefits of a Canadian public listing.

Similarly, a memorandum of understanding with the Jamaica Stock Exchange, home to public companies with some $14 billion in total market capitalization, will see the two exchanges explore opportunities to cross-list companies and share expertise.

“The business community is so connected now that when you cannot meet a need inside your own borders, there is often an accessible solution somewhere else in the world. And because of technology, you, your stakeholders and your broader audience can realistically take advantage of it,” says Carleton. “For us, theres an opportunity to take the strengths of Canadas capital markets and those of the CSE abroad, and everyone benefits.”

A development that issuers at home and abroad should find particularly interesting is the CSEs plan to create a senior tier for issuers meeting certain criteria. “As the average size of CSE issuers increases and transactions become more complex, we are readying a senior tier to acknowledge that due diligence required by us on a $500,000 mining property option, for example, is not the same as for a $1 billion cannabis acquisition involvingRead More – Source

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Australia

Calima Energy acquires Tommy Lakes facilities and direct access to major export routes in Canada

Calima Energy Ltd (ASX:CE1) recently acquired the Tommy Lakes facility, including associated pipelines and infrastructure, from Enerplus Corp (TSE:ERF).

Tommy Lakes lies immediately to the north of the Calima lands in British Columbia and saves the company (and any future partner) an $85 million investment in infrastructure.

Calima managing director Alan Stein said: “This is a significant strategic acquisition that gives the company access to markets in a very cost-efficient manner.

“With a replacement value of $85 million, the re-use of Tommy Lakes significantly reduces capital cost however, just as importantly, avoids the time involved in permitting and constructing new facilities.

“The Calima Lands are now ready for development once a funding partner is secured.”

The infrastructure acquired includes gathering pipelines, compression facilities and associated facilities capable of transporting up to 50 million cubic feet/day of gas and 1,500-2,000 barrels per day of well-head c..

Calima Energy Ltd (ASX:CE1) recently acquired the Tommy Lakes facility, including associated pipelines and infrastructure, from Enerplus Corp (TSE:ERF).

Tommy Lakes lies immediately to the north of the Calima lands in British Columbia and saves the company (and any future partner) an $85 million investment in infrastructure.

Calima managing director Alan Stein said: “This is a significant strategic acquisition that gives the company access to markets in a very cost-efficient manner.

“With a replacement value of $85 million, the re-use of Tommy Lakes significantly reduces capital cost however, just as importantly, avoids the time involved in permitting and constructing new facilities.

“The Calima Lands are now ready for development once a funding partner is secured.”

The infrastructure acquired includes gathering pipelines, compression facilities and associated facilities capable of transporting up to 50 million cubic feet/day of gas and 1,500-2,000 barrels per day of well-head condensate

Production start-up from existing wells could commence the first quarter 2021 subject to third party funding.

Strategic acquisition


The principal consideration for the acquisition is around $825,000 which will include the cost of shutting down the facilities and the payment of a refundable performance bond to the Oil & Gas Commission of British Columbia (OGC).

Calima has also entered into an option agreement to acquire 11 gas production wells on or before April 1, 2022 in the Tommy Lakes field.

The wells would provide the company with the option to use gas as fuel as part of the start-up sequence for the facilities, if required.

As it stands, the strategic acquisition means Calima avoids regulatory work that could otherwise take years to approve and can leave the existing facility on suspension until its ready to start production.

Pipeline and processing access


The acquisition also provides Calima cost-efficient access to the North River Midstream pipeline and Jedney processing facility.

The processing plant in turn provides immediate access to major export routes including TC Pipelines LPs (TSE:TRP) Nova gas transmission pipeline and the Alliance pipeline.

Importantly, new pipeline investment and capacity growth will allow for gas to be directed towards the Shell/Petronas LNG Canada Facility via the Canada Coastal Link pipeline and the proposed Woodside/Chevron LNG Facility at Kitimat.

Major pipelines and export routes in Canada

Condensate, gas and project economics


The company estimates around 77% of production in terms of barrels of oil equivalent (boe) from the Calima lands would be gas, and condensate would be expected to account for around 50% of production revenue from the Calima Lands.

While Calimas project economics are underpinned by condensate, the gas price offers leverage.

Canadian producers have been under pressure from low gas prices for several years, but now Western Canadian gas prices are improving as more pipeline capacity is made available.

Stein said: “With gas prices showing consistent increases over the last 6 months, development economics are showing steady improvement.”

Calima regards $2 per gigajoule as an inflection point in delivering acceptable project econRead More – Source

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Broken Hill Prospecting closes renounceable rights offer to support exploration at La Paz Rare Earths project

Broken Hill Prospecting Ltd (ASX:BPL) has announced its renounceable rights offer closed on Monday, February 17, 2020 with applications totalling $1,310,227 – around 52.6% of the total offer.

BPL intends to use the funds raised under the offer to progress work at the La Paz Rare Earths Project in Arizona USA, following the initial success of the maiden mapping and sampling program during October 2019 which led the company to apply for further tenements and double its footprint in the region.

Exploration and metallurgical plans[hhmc]
The company will use the funds to carry out exploration and technical programs focused on metallurgical test work forming a critical part of the scoping study economic assessment of the project which is due in 2020.

This includes:

Assessing upgrading the current resource estimate to JORC 2012 standards;
Commencing detailed metallurgical test work programs;Read More – Source
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Proactiveinvestors
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Broken Hill Prospecting Ltd (ASX:BPL) has announced its renounceable rights offer closed on Monday, February 17, 2020 with applications totalling $1,310,227 – around 52.6% of the total offer.

BPL intends to use the funds raised under the offer to progress work at the La Paz Rare Earths Project in Arizona USA, following the initial success of the maiden mapping and sampling program during October 2019 which led the company to apply for further tenements and double its footprint in the region.

Exploration and metallurgical plans


The company will use the funds to carry out exploration and technical programs focused on metallurgical test work forming a critical part of the scoping study economic assessment of the project which is due in 2020.

This includes:

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Australia

Chase Mining Corporation launches share purchase plan to support drilling at Canadian projects

Chase Mining Corporation Ltd (ASX:CML) is undertaking a share purchase plan (SPP) targeting between $300,000 and a maximum of $450,000 for drilling at its Alotta or Lorraine projects in Canada.

Although the Company has sufficient funds for its budgeted Zeus drilling programme and working capital requirements, the board agreed to offer shareholders the opportunity to participate in an SPP with the funds raised allowing the option to continue the May drilling at Alotta and/or Lorraine pending success.

Subscribing for shares[hhmc]
Under the SPP, eligible shareholders will be given the opportunity to purchase up to $30,000 worth of shares at 1.5 cents each without incurring brokerage or transaction costs.

Eligible Shareholders will be able to participate in the SPP by subscribing for shares in multiples of $6,000, subject to a scale back at the directors discretion and the listing rules.

The SPP is not underwritten.

Read More – Source

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Proactiveinvestors
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Chase Mining Corporation Ltd (ASX:CML) is undertaking a share purchase plan (SPP) targeting between $300,000 and a maximum of $450,000 for drilling at its Alotta or Lorraine projects in Canada.

Although the Company has sufficient funds for its budgeted Zeus drilling programme and working capital requirements, the board agreed to offer shareholders the opportunity to participate in an SPP with the funds raised allowing the option to continue the May drilling at Alotta and/or Lorraine pending success.

Subscribing for shares


Under the SPP, eligible shareholders will be given the opportunity to purchase up to $30,000 worth of shares at 1.5 cents each without incurring brokerage or transaction costs.

Eligible Shareholders will be able to participate in the SPP by subscribing for shares in multiples of $6,000, subject to a scale back at the directors discretion and the listing rules.

The SPP is not underwritten.

Read More – Source

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