Oreninc Index Update: December 17, 2015

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Oreninc Index Jumps to Five-Week High

The Oreninc Index jumped to a five-week high for the week ending December 17, 2015. Total dollars announced exploded to $126m, a 9-week high. Two brokered financings were announced for $10m, a two-week high; No bought deal financings were announced for the third time in four weeks.

The biggest deal making news of the week came from Rio Tinto Group’s (LON:RIO) announcement that they had secured a $4.4bn financing deal for their Oyu Tolgoi mine. Gold prices were way down for the week on news that the United States Federal Reserve had increased interest rates, with the precious metal falling to a six-year low.

Though gold had a rough week, this was a surprisingly good performance for the index in a generally quiet time of year for the industry.

 

Summary:

  • Number of financings jumped to 35, a 25-week high.
  • Two brokered financings were announced for $10m, a two-week high.
  • No bought deal financings were announced for the third time in four weeks..
  • Total dollars exploded to $126m, a 9-week high.
  • Average offer size increased to $3.6m, a two-week high.

Major Financing Openings:

  • Caza Oil & Gas Inc. (TSX:CAZ) opened a $62.47 million offering on a strategic deal basis.    
  • Strategic Oil & Gas Ltd. (TSX-V:SOG) opened a $25 million offering on a best efforts basis.   
  • Manitok Energy Inc. (TSX-V:MEI) opened a $10 million offering underwritten by a syndicate led by Integral Capital Markets on a best efforts basis.    
  • Africa Energy Corp. (TSX-V:AFE) opened a $6.9 million offering on a best efforts basis. The deal is expected to close on or about December 31, 2015.

Major Financing Closings:

  • Ascot Resources Ltd. (TSX-V:AOT) closed a $7.53 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 18 months.
  • Excelsior Mining Corp. (TSX-V:MIN) closed a $9.19 million offering on a strategic deal basis.    
  • Canadian Spirit Resources Inc. (TSX-V:SPI) closed a $2.5 million offering on a best efforts basis.    
  • Discovery Ventures (TSX:DVN) closed a $1.19 million offering on a best efforts basis.

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