Oreninc Index Update: December 22, 2016

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Oreninc Index Rises to Four-Week High in Week before Holiday Break 

The Oreninc Index rose to a four-week high for the week ending December 22, 2016. Total dollars rose to $123.7m, a four-week high. One brokered financing was announced for $0.6m, a 41-week low; No bought-deal financing was announced, a three-week low.

The biggest deal-making news of the week came from Vale (NYSE:VALE) and their announcement that they had sold the lion-share of their fertilizer business to Mosaic Co. (NYSE:MOS) for $2.5bn, in a half stock, half cash deal. Gold price mostly stayed level, with it still remaining significantly lower than it’s YTD-high over the summer. On the other end of the spectrum, both copper and iron ore were down again, as they have been for most of the month, but are still faring much better than they were prior to the election of Donald J. Trump in the United States.

As the year comes to an end, it is good to see some deal-making and money being raised in the market. Let’s see how the industry moves into the new year, and how the sudden shift in fortunes for different metals impacts things in 2017. 

Summary:

  • Number of financings grew to 45, a four-week high.
  • One brokered financing was announced for $0.6m, a 41-week low.
  • No bought-deal financing was announced, a three-week low.
  • Total dollars rose to $123.7m, a four-week high.
  • Average offer size fell to $2.7m, a two-week low. 

Major Financing Openings:

  • Strategic Oil & Gas Ltd. (TSX-V:SOG) opened a $39.96 million offering on a best efforts basis.
  • International Tower Hill Mines Ltd. (TSX:ITH) opened a $29.3 million offering on a best efforts basis.
  • PPX Mining Corp. (TSX-V:PPX) opened a $7.5 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months.
  • Integra Gold Corp. (TSX-V:ICG) opened a $7 million offering on a best efforts basis. The deal is expected to close on or about December 20, 2016.

Major Financing Closings:

  • Lumina Gold Corp. (TSX-V:LUM) closed a $20 million offering on a best efforts basis.    
  • Harte Gold Corp. (TSX-V:HRT) closed a $25 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada Corp. on a bought deal basis. 
  • G4G Capital Corp. (TSX-V:GGC) closed a $18 million offering on a strategic deal basis.    The deal is expected to close on or about December 13, 2016.
  • Osisko Mining Inc. (TSX:OSK) closed a $13.96 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a best efforts basis. The deal is expected to close on or about December 13, 2016.

 

 

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