Oreninc Index Update: August 7, 2014

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Oreninc Index Falls to Seven-Week Low in Holiday-Shortened Week

The Oreninc Index fell to a seven-week low in the holiday-shortened week ending August 7, 2014. Total dollars for the week dropped to $50.2m, a seven-week low. One brokered deal, led by Macquarie, was announced for 10m shares on terms that are TBA. For the first time in three weeks, no bought deals were announced. The shortened week underscores the tone of what appears to be one of the quietest weeks of the year.

The tailings pond spill at the Mount Polley mine in British Columbia stoked fear across North America of a possible backlash against mine development. While it is easy to attribute a down week in financing activity on such a disaster, it could be premature blame given its marginal effect on the S&P/TSX-V composite index over the course of the week. That being said, disasters in the resources space have caused investor skittishness before (such as the down uranium and general resource markets after the Japanese tsunami in 2011) and it is not a stretch to think that shades of similar sentiment could appear in the coming weeks. 

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Summary:

  • Deals announced dropped to 24, a two-week low.
  • One brokered deal was announced for a yet-to-be-determined amount.
  • No bought deals were announced, a three-week low.
  • Total dollars fell to $50.2m, a seven-week low.
  • Average deal size rose to $2.2m, a two-week high.

Major Financing Openings:

  • Luna Gold Corp. (TSX:LGC) opened a $30.6 million offering on a best efforts basis.    
  • IMX Resources (TSX:IXR) opened a $3.02 million offering on a best efforts basis.   
  • International Northair Mines Ltd. (TSX-V:INM) opened a $3 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 18 months. The deal is expected to close on or about September 1, 2014.
  • Elcora Resources Corp (TSX-V:ERA) opened a $1.5 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 18 months.

Major Financing Closings:

  • Probe Mines Ltd. (TSX-V:PRB) closed a $26.04 million offering on a best efforts basis.    
  • Almaden Minerals Ltd. (TSX:AMM) closed a $6 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 12 months.
  • Colt Resources Corp. (TSX-V:GTP) closed a $2.21 million offering on a strategic deal basis. Each unit includes 1 warrant that expires in 24 months.
  • Arctic Star Exploration Corp. (TSX-V:ADD) closed a $1.78 million offering on a best efforts basis.

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