Oreninc Index Update: February 12, 2015

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Oreninc Index Reaches Highest Level Since October

The Oreninc Index reached its highest level since October for the week ending February 12, 2015. Total dollars announced exploded to $221.6m, a 17-week high. Six brokered deals were announced for $165.7m, a 48-week high; five bought deals were announced for $156.6m, a 49-week high.

Deal-making increased for the week with Tahoe Resources Inc (NYSE:TAHO) and Rio Alto Mining Ltd.’s (TSX:RIO) announcement that they will merge to form a new precious metals major. The deal will leave Tahoe and Rio shareholders with roughly 65% and 35% of the company, respectively. Gold prices slid to below $1,220 for the first time since early January on news that the US employment climate continues to improve.

It’s nice to finally see a standout week after so much stagnation in what should be the height of the money-raising season. Hopefully the Index can stay at this level, or somewhere near it, as the industry looks ahead to the PDAC in the coming weeks. 

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Summary:

  • Number of financings increased to 29, tied for a seven-week high.
  • Six brokered financings were announced for $165.7m, a 48-week high.
  • Five bought deal financings were announced for $156.6m, a 49-week high.
  • Total dollars exploded to $221.6m, a 17-week high.
  • Average offer size jumped to $7.9m, a 17-week high.

Major Financing Openings:

  • Crew Energy Inc. (TSX:CR) opened a $100 million offering underwritten by a syndicate led by GMP Securities on a bought deal basis. The deal is expected to close on or about March 3, 2015.
  • SEMAFO Inc. (TSX:SMF) opened a $50.32 million offering underwritten by a syndicate led by Clarus Securities Inc. on a bought deal basis. The deal is expected to close on or about March 4, 2015.
  • Kennady Diamonds Inc. (TSX-V:KDI) opened a $20 million offering on a best efforts basis.    
  • Aureus Mining Inc. (TSX:AUE) opened a $19.07 million offering underwritten by a syndicate led by GMP Securities Europe on a best efforts basis.   

Major Financing Closings:

  • ShaMaran Petroleum Corp. (TSX-V:SNM) closed a $75 million offering on a best efforts basis.    
  • Asanko Gold Inc. (TSX:AKG) closed a $46 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis.    
  • Richmont Mines Inc. (TSX:RIC) closed a $38.5 million offering underwritten by a syndicate led by Macquarie Capital Markets Canada Ltd. on a bought deal basis.    
  • Dalradian Resources Inc. (TSX:DNA) closed an $11.3 million offering on a best efforts basis.

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