Oreninc Index Update: December 8, 2016

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Oreninc Index Rises Slightly

The Oreninc Index rose slightly for the week ending December 8, 2016. Total dollars grew to $71.8m, a two-week high. Three brokered financings were announced for $6.1m, a two-week high; One bought-deal financing was announced for $3.4m, a two-week high.

Top Deal making news of the week was Sibanye Gold’s (NYSE:SBGL) purchase of Stillwater Mining Company (NYSE:SBGL) for $2.2bn in cash. Stillwater is the only operating platinum producer in the US. Copper and iron ore continued their overwhelming positive end of 2016, both hitting over year-highs. Coking Coal, despite having a superb 2016, sharply decreased for the week, though still remained extremely positive on the year. Gold remained mostly the same despite a slight blip up due to a politically charged “no” vote in a referendum in Italy, which caused its Prime Minister, Matteo Renzi, to announce that he would resign.

December seems to have had a cooling effect on the generally positive financing market for Juniors. Like was pointed out in last week’s Index, this should not be overwhelmingly surprising, as December generally is a bit less active due to various holidays throughout the months. Investors should look at the mostly positive metals news from the past month, take a look at where the market was a year ago, and feel good about where the space is at heading into the new year.

Summary:

  • Number of financings rose to 42, a two-week high.
  • Three brokered financings were announced for $6.1m, a two-week high.
  • One bought-deal financing was announced for $3.4m, a two-week high.
  • Total dollars grew to $71.8m, a two-week high.
  • Average offer size increased to $1.8m, a two-week high.

Major Financing Openings:

  • G4G Capital Corp. (TSX-V:GGC) opened a $18 million offering on a strategic deal basis.    The deal is expected to close on or about December 13, 2016.
  • Los Andes Copper Ltd. (TSX-V:LA) opened a $9 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 36 months.
  • Tsodilo Resources Limited (TSX-V:TSD) opened a $8.1 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.
  • Standard Lithium Ltd. (TSX-V:SLL) opened a $5 million offering on a best efforts basis.    

Major Financing Closings:

  • Aureus Mining Inc. (TSX:AUE) closed a $61.65 million offering on a strategic deal basis.    The deal is expected to close on or about December 14, 2016.
  • Arizona Mining Inc. (TSX:AZ) closed a $36.01 million offering underwritten by a syndicate led by Scotia Capital Inc. on a bought deal basis. The deal is expected to close on or about December 6, 2016.
  • Horizonte Minerals plc (TSX:HZM) closed a $17.52 million offering on a best efforts basis.
  • SilverCrest Metals Inc. (TSX-V:SIL) closed a $10.01 million offering underwritten by a syndicate led by National Bank Financial Inc. on a bought deal basis. The deal is expected to close on or about December 6, 2016.

 

 

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