Oreninc Index Update: April 9, 2015

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Oreninc Index Explodes to 25-Week High

The Oreninc Index exploded to a 25-week high in the holiday-shortened week ending April 9, 2015. Total dollars announced jumped to $166.1m on 32 financings, eight- and six-week highs respectively. Five brokered and bought financings were announced for $138m, eight-week highs for both.

Deal-making was robust with one of the biggest deals of the year (so far) being announced—Royal Dutch Shell’s (NYSE: RDS) acquisition of BG Group (LON:BG) for a cash and stock deal worth $70b (USD). Commodities had another up and down week, with gold gaining a bit before falling below $1,200 an ounce. Oil prices, on the other hand, rose for the fourth straight week.

While one week’s performance is never going to move the needle enough to make up for what has been, up to this point, a horrific financing season, it’s great to finally see a bright spot in the Canadian natural resources space.

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Summary:

  • Number of financings jumped to 32, a six-week high.
  • Five brokered financings were announced for $138m, an eight-week high.
  • Five bought deal financings were announced for $138m, an eight-week high.
  • Total dollars exploded to $166.1m, an eight-week high.
  • Average offer size rose to $5.2m, a seven-week high.

Major Financing Openings:

  • NuVista Energy Ltd. (TSX:NVA) opened an $111.98 million offering underwritten by a syndicate led by RBC Capital Markets on a bought deal basis. The deal is expected to close on or about April 29, 2015.
  • First Majestic Silver Corp. (TSX:FR) opened a $30.03 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.    
  • Integra Gold Corp. (TSX-V:ICG) opened a $10 million offering underwritten by a syndicate led by Macquarie Capital Markets Canada Ltd. on a bought deal basis. The deal is expected to close on or about April 22, 2015.
  • Enhanced Oil Resources Inc. (TSX-V: EOR) opened a $6.93 million offering on a best efforts basis.    

Major Financing Closings:

  • Rubicon Minerals Corporation (TSX:RMX) closed a $30.21 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.   
  • Seabridge Gold Inc. (TSX:SEA) closed a $16.37 million offering underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.    
  • Minsud Resources Corp. (TSX-V:MSR) closed a $0.9 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.
  • Kariana Resources Inc. (CSE:KAA) closed a $0.78 million offering on a best efforts basis.

 

 

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