Oreninc Index Update: August 27, 2015

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 Oreninc Index Falls to Lowest Level of Summer

The Oreninc Index fell to it’s lowest level of the summer for the week ending August 27, 2015. Total dollars fell sharply to $16.2m, a 33-week low. One brokered financing was announced for $0.75m, a two-week low; no bought deal financings were announced, a two-week low.

Deal-making, surprisingly, picked up for the week, with the largest news being Anglo American plc (LON:AAL) selling two of their Chilean copper mines to a group led by investment firm Audley Capital Advisors for $300m. The deal includes conditional future payments that could increase the eventual price tag by $200m. Commodities had a crazy week due in part to the turbulent week that global markets experienced. While gold was down as a whole, it did show signs of regaining some of the boost it had received in the previous week as the week came to a close. Oil started off very poorly, before recovering nicely as global equity valuations regained some strength as the week bore on.

With global markets in flux and commodities prices at an unstable place, things are looking shaky in the Canadian natural resource financing markets. We’ll see what the combination of entering a historically more active financing season, along with the stabilization of markets, may do for companies ability to raise money in the coming weeks. 

 

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Summary:

  • Number of financings decreased to 17, a three-week low.
  • One brokered financing was announced for $0.75m, a two-week low.
  • No bought deal financings were announced, a two-week low.
  • Total dollars fell sharply to $16.2m, a 33-week low.
  • Average offer size dropped to $1m, a 33-week low.  

Major openings included:

  • Pershimco Resources Inc. (TSX-V:PRO) opened and closed a $3.27 million offering on a strategic deal basis.    
  • NWest Energy Corporation (TSX-V:NWN) opened a $3 million offering on a strategic deal basis.    
  • Scandium International Mining Corp. (TSX:SCY) opened and closed a $2.17 million offering on a best efforts basis.    
  • Happy Creek Minerals (TSX-V:HPY) opened a $1.1 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 36 months.

Major closings included:

  • Imperial Metals Corporation (TSX:III) closed a $44.01 million offering on a best efforts basis.    
  • Red Eagle Mining Corporation (TSX-V:RD) closed a $19.35 million offering on a best efforts basis.    
  • Oban Mining Corp. (TSX:OBM) closed a $17.8 million offering on a strategic deal basis.    
  • Kicking Horse Energy Inc. (TSX-V:KCK) closed a $4 million offering on a best efforts basis.

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