Oreninc Index Update: December 10, 2015

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Oreninc Index Falls into Pre-Holiday Funk

The Oreninc Index fell into a pre-holiday funk for the week ending December 10, 2015. Total dollars announced dropped to $25m, a 14-week low. Three brokered financings were announced for $3.1m, a two-week low; A two-part bought deal financings was announced for $2.8m, a three-week high.

Deal-making was light on the week, with no major deals of note being announced. That said, both Anglo American plc (LON:AAL) and Glencore plc (LON:GLEN) both announced major job cuts and other restructuring efforts in reaction to sinking commodity prices. Gold prices were slightly down for the week, and iron ore fell to a record low.

While things certainly look grim in the natural resources space, it’s important to remember that often the weeks leading up to the holidays can get wonky, both with financings and with deal-making. Let’s see what the beginning of 2016 brings before going even deeper into panic mode.

 

 

 

 

 

 

 

 

 

 

 

 

 Summary:

  • Number of financings jumped to 32, a three-week high.
  • Three brokered financings were announced for $3.1m, a two-week low.
  • Two bought deal financings were announced for $2.8m, a three-week high.
  • Total dollars dropped to $25m, a 14-week low.
  • Average offer size increased to $0.8m, a 48-week low.

Major Financing Openings:

  • Stonehaven Exploration Ltd. (TSX-V:SE) opened a $4 million offering on a best efforts basis. The deal is expected to close on or about December 29, 2015.
  • BonTerra Resources Inc. (TSX-V:BTR) opened a $3.2 million offering on a best efforts basis.
  • IDM Mining Ltd. (TSX:IDM) opened a $3.2 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
  • Wesdome Gold Mines Ltd. (TSX:WDO) opened a $3 million offering on a best efforts basis. The deal is expected to close on or about December 18, 2015.

Major Financing Closings:

  • NexGen Energy Ltd. (TSX-V:NXE) closed a $21 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis.
  • Aureus Mining Inc. (TSX:AUE) closed a $17.27 million offering underwritten by a syndicate led by GMP Securities Europe LLP on a best efforts basis.
  • Premier Gold Mines Limited (TSX:PG) closed a $7.8 million offering on a best efforts basis.   
  • Alexco Resource Corp. (TSX:AXR) closed a $3.96 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis.

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