Oreninc Index Update: December 15, 2016

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Oreninc Index Remains in Holiday Slump 

The Oreninc Index stayed mostly level for the week ending December 15, 2016. Total dollars grew to $123.6m, a three-week high. One brokered financing was announced for $2.5m, a 31-week low; One bought-deal financing was announced for $2.5m, a two-week low.

Deal-making was light on the week, with Glencore (LON:GLEN) purchasing some of zinc producer Nyrstar’s (EBR:NYR) assets for $26m being the biggest news of the week. Gold prices were down on the week on news that the US Federal Reserve is raising interest rates, with iron ore continuing its positive trend.

While the overall index performance is down for the month, the fact that we are in a place where these positive of numbers are viewed as a poor performance means that 2016 has been a positive year in the Canadian natural resource financing market. 

Summary:

  • Number of financings fell to 32, a two-week low.
  • One brokered financing was announced for $2.5m, a 31-week low.
  • One bought-deal financing was announced for $2.5m, a two-week low.
  • Total dollars grew to $123.6m, a three-week high.
  • Average offer size increased to $3.9m, a six-week high. 

Major Financing Openings:

  • Strategic Oil & Gas Ltd. (TSX-V:SOG) opened a $39.96 million offering on a best efforts basis.
  • International Tower Hill Mines Ltd. (TSX:ITH) opened a $29.3 million offering on a best efforts basis.
  • PPX Mining Corp. (TSX-V:PPX) opened a $7.5 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months.
  • Integra Gold Corp. (TSX-V:ICG) opened a $7 million offering on a best efforts basis. The deal is expected to close on or about December 20, 2016.

Major Financing Closings:

  • Lumina Gold Corp. (TSX-V:LUM) closed a $20 million offering on a best efforts basis.    
  • Harte Gold Corp. (TSX-V:HRT) closed a $25 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada Corp. on a bought deal basis. 
  • G4G Capital Corp. (TSX-V:GGC) closed a $18 million offering on a strategic deal basis.    The deal is expected to close on or about December 13, 2016.
  • Osisko Mining Inc. (TSX:OSK) closed a $13.96 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a best efforts basis. The deal is expected to close on or about December 13, 2016.

 

 

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