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1. Gold is trying to hold support around $1,280 after Friday’s plunge to a near 6-month low…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,280…notably, over the last 3 weeks Gold stocks, as measured by the NYSE Arca Gold Miners Index, have outperformed bullion by 121 basis points…this could be an early indication that the metal is forming a bottom and that investors are positioning themselves now for a seasonal summer lift in bullion…Silver is off a nickel at $16.49…Copper is down for a 3rd straight session on fears that trade tensions between the world’s 2 largest economies could escalate while demand from China could cool following lacklustre data last week…China posted weaker-than-expected industrial output, investment and retail sales for May on Thursday, signalling further weakness ahead if Beijing sustains its crackdown on factory pollution and local government spending…Copper has slipped 3 pennies to $3.15 but the underlying trend remains bullish…Nickel is off 5 cents at $6.81 while Zinc and Cobalt are flat at $1.42 and $36.97, respectively…Crude Oil has recovered 30 cents to $65.36 a barrel ahead of an important OPEC meeting Friday in Vienna…the U.S. Dollar Index has added more than one-tenth of a point to 95.03…

2. Historically, a trend of higher U.S. federal budget deficits has had very bullish implications for Gold…deficits don’t appear to be top-of-mind with most investors or the mainstream media at the moment but that could easily change over the next 6 to 9 months…the Treasury Department announced last week that in the first 8 months of the current fiscal year – October through May – the U.S. government deficit widened to a whopping $532 billion, or 23% more than the same 8-month period a year ago…that’s already more than the total deficits in fiscal years 2014 and 2015…because of higher spending and lower revenues, it’s estimated that the deficit by the end of the current fiscal year will balloon to $833 billion, which would be the greatest amount since 2012…

3. South32 (S32, ASX) is buying out Arizona Mining (AZ, TSX) – the 83% it doesn’t already own – in an all-cash deal for $1.8 billion (CDN)…the offer price of $6.20 per share represents a 50% premium to Friday’s closing price and implies a total equity value for Arizona Mining of $2.1 billion (CDN)…directors and officers of Arizona Mining, who own 34% of the common shares on issue, have entered into voting support agreements…Arizona Mining owns the Hermosa Project containing the high-grade base metals Taylor deposit, the Central Zinc, Manganese and Silver oxide resource, and an extensive, highly prospective land package with potential for discovery of polymetallic and Copper mineralization…the Taylor deposit is a greenfield development project that has a reported resource of 101 million short tons Measured & Indicated at 10.4% Zinc equivalent grade…the deposit is open at depth and laterally…the project is located close to key infrastructure in an attractive mining jurisdiction…a Preliminary Economic Assessment completed by Arizona Mining in January 2018 indicated that this low-cost, long life project has the potential to deliver a very high internal rate of return…South32 CEO Graham Kerr stated, “Our all-cash offer for Arizona Mining will allow us to optimize the design and development of one of the most exciting base metal projects in the industry.  We have been a major shareholder in Arizona Mining since May, 2017, and an active participant in the Hermosa Project with representation on the operations committee and a nominee on the board of directors.  Our deep understanding of this high-grade resource and surrounding tenement package, and extensive experience at Cannington, makes us the natural owner of this project and ensures we are well positioned to bring it to development, delivering significant value to our shareholders”…

4. The Dow has fallen 136 points through the first 30 minutes of trading with U.S.-China trade concerns continuing to weigh on the minds of investors…the June survey of fund managers conducted by Bank of America Merrill Lynch has found that equity investors are overweight U.S. stocks for the first time in 15 months…commodity allocations are at their highest in 8 years, and two-thirds of managers say the U.S. is the best region in the world right now for corporate profits which are at a 17-year high… in Toronto, the TSX has climbed 31 points while the Venture has backed off 1 point to 753…Canada Goose (GOOS, TSX) continues to fly, up another $7.45 a share to $85.46…the company reported a net income of $8.1-million or 7 cents a share in the 3 months ended March 31, beating expectations for a loss of 8 cents…gross margin expanded to 62.7% in the quarter from 54.4% a year earlier…revenue from its direct-to-consumer segment jumped to $95 million from $36.5 million, while wholesale business doubled to almost $30 million in the quarter from a year earlier…RBC analyst Brian Tunick stated, “Despite its 60-year history, we see Canada Goose as in the early stages of its growth trajectory, particularly in the fragmented and growing premium outerwear market”…revenue grew 46% to $591 million in the year ended March 31 while net income jumped to $96 million or 86 cents, from $21.6 million or 21 cents a year earlier…it expects revenue to grow at least 20% and adjusted net income per share to increase at least 25% in fiscal 2019…ATAC Resources (ATC, TSX-V) was halted pre-market, pending news…Doubleview Capital (DBV, TSX-V) was halted late Friday morning with news expected sometime today…speculation is, DBV has cut a deal to JV its Hat Gold-Copper Porphyry Project in Northwest B.C.’s Sheslay district…Aldershot Resources (ALZ, TSX-V), taking a shot at the cannabis sector with a $25 million raise and a new board and management team, continues to climb, hitting a new multi-year high of 18 cents through the first 30 minutes of trading…

5. Cannabix Technologies (BLO, CSE) has jumped 25 cents to $1.76 in early trading following a progress report this morning on continued testing of the Beta 3.0 version of its marijuana breathalyzer for law enforcement and the workplace…the company also noted that the Cannabis Act legislation currently working its way through Parliament, and legislative developments in the State of Vermont, have increased the number of inquires for the Cannabix breathalyzer device…the company is receiving interest in piloting from U.S. and Canadian law enforcement groups as well as other organizations that drug-test their employees…the Senate Judiciary Committee in the state of Vermont recently rejected a bill to use saliva testing for THC enforcement, amid concerns of scientific validity, accuracy, and infringement on civil liberties…

6.  Choom Holdings (CHOO, CSE) has closed its previously announced non-brokered private placement…the company issued 14.2 million shares at 71 cents per share, raising total gross proceeds of $10.1 million…Aurora Cannabis (ACB, TSX-V) is the cornerstone investor in the placement with a lead order of $7 million…news of the PP last Wednesday led to a 52% weekly gain in CHOO with the stock closing at $1.37 Friday…“The financing provides us with the funds to accelerate the execution of our unique retail strategy moving forward,” states Chris Bogart, President & CEO of Choom…“We are now well positioned to expand our production and retail footprint, as well as pursue further opportunities across Canada”…an imminent new CSE marijuana listing to watch out for is Tidal Royalty Group…

7.  Pascal Biosciences (PAS, TSX-V) is up in early trading after announcing that it has received a U.S. Drug Enforcement Administration (DEA) Schedule 1 License for Cannabinoid Development, while the company has also made significant progress in its cannabinoid based research and development program with the University of British Columbia…Pascal is one of only a few organizations with a Schedule I Researcher license in the United States that is not a university…obtaining a DEA Schedule I Researcher license is a rigorous process, requiring a well-documented line of scientific investigation in a formal application, inspection of laboratory facilities, review of record-keeping plans, and confirmation of facility security.  “Receiving our Schedule I DEA license allows us to immediately conduct advanced R&D on cannabinoids, with a goal of conducting clinical trials on cancer patients as soon as possible”, commented Dr. Patrick Gray, CEO at Pascal…meanwhile, given strong results, the company has renewed its UBC collaboration and financial support of Dr. Wilfred Jefferies’ laboratory at the Michael Smith Laboratories…Dr. Jeffries was the first scientist to discover specific cannabinoids that can increase the immune recognition of both mouse and human cancer cells…together, both labs have greatly extended this work…over 375 natural and synthetic cannabinoids have been tested, and the most potent and safe cannabinoids have been identified…“Previous support by Pascal enabled the discovery of specific cannabinoids that enhance detection and elimination of cancers by the immune system”, commented Dr. Jefferies. “Together we have made great progress in developing a cannabinoid for cancer.  Pascal’s continued financial support will enable a lead product to complete preclinical efforts for treatment of patients with cancer”…

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