Oreninc Index Update: February 5, 2015

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Oreninc Index Levels Out

The Oreninc Index continued its streak of leveled out consistency for the week ending February 5, 2015. Total dollars announced dropped to $33.9m, a four-week low. Two brokered financings were announced for $21.7m, a four-week low; one bought deal was announced for $10m, also a four-week low.

No major deals were announced, making it the second week in a row of quiet deal-making in the space. Gold had another sub-par week, continuing its roller coaster of a 2015 to below $1,270 an ounce, though it still remains well above November’s YTD low. Iron ore also continued its downward trend, hitting a five-and-a-half-year low in its seemingly never-ending fall. In brighter news, copper prices rose marginally to a two-week high.

While hovering around this suppressed–if not relatively respectable–level is not an ideal way to start the year, it’s a positive sign that some companies are still raising cash via brokered and bought deals. 

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Summary:

  • Number of financings decreased to 25, tied for a two-week low.
  • Two brokered financings were announced for $21.7m, a four-week low.
  • One bought deal financing was announced for $10m, a four-week low.
  • Total dollars dropped to $33.9m, a four-week low.
  • Average offer size fell to $1.4m, a four-week low.

Major Financing Openings:

  • RTG Mining Inc. (TSX:RTG) opened a $11.71 million offering underwritten by a syndicate led by Haywood Securities Inc. on a best efforts basis. The deal is expected to close on or about February 18, 2015.
  • Rock Energy Inc. (TSX:RE) opened a $10 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a bought deal basis. 
  • Nevada Iron Limited (TSX:NVR) opened a $1.9 million offering on a best efforts basis.    
  • Red Eagle Mining Corporation (TSX-V:RD) opened a $1.26 million offering on a strategic deal basis. 

Major Financing Closings:

  • Raging River Exploration Inc. (TSX:RRX) closed an $88.32 million offering underwritten by a syndicate led by Peters & Co. Ltd. on a bought deal basis. 
  • Lydian International Ltd. (TSX:LYD) closed a $16.5 million offering underwritten by a syndicate led by Scotia Capital on a bought deal basis. 
  • Robex Resources Inc. (TSX-V:RBX) closed a $10 million offering on an insiders only basis.    
  • Western Uranium Corporation (CSE:WUC) closed a $1.76 million offering on a best efforts basis.

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