Oreninc Index Update: January 14, 2016

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Oreninc Index Rises Marginally

The Oreninc Index rose marginally for the week ending January 14, 2016. Total dollars announced rose to $13.4m, a 53-week low. One brokered financing was announced for $10m, tied for a six-week high; No bought deal financings were announced for the seventh time in eight weeks.

After a couple of holiday-filled weeks, deal-making activity has picked up a bit, with reports that South32 (ASX:S32) is considering an offer for Anglo American plc’s (LON:AAL) Brazilian niobium and phosphate business being the biggest news. Oil had a brutal week, with iron ore and copper not faring much better. Gold had a volatile week, but ended mostly where it started.

While the index numbers did rise this week, key numbers did go down. The increased performance is mostly due to an increase in broker dollars, which have been hard to come by recently. Still, seeing companies mull over acquisitions again brings some movement to the space as commodities continue to fall and money continues to be difficult to raise.

 

 

Summary:

  • Number of financings dropped to 6, a multi-year low.
  • One brokered financing was announced for $10m, tied for a six-week high.
  • No bought deal financings were announced for the seventh time in eight weeks.
  • Total dollars fell to $13.4m, a 53-week low.
  • Average offer size decreased to $2.2m, a two-week low.

Major Financing Openings:

  • Oban Mining Corp. (TSX:OBM) opened a $10 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a best efforts basis. Each unit includes 1 warrant that expires in 36 months. The deal is expected to close on or about February 3, 2016.
  • New Era Minerals Inc. (TSX-V:NEM) opened a $2.1 million offering on a insiders only basis. The deal is expected to close on or about June 30, 2016.
  • Vatic Ventures Corp. (TSX-V:VCV) opened a $0.6 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 12 months.
  • Brixton Metals Corp. (TSX-V:BBB) opened a $0.4 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 36 months. The deal is expected to close on or about February 16, 2016.

Major Financing Closings:

  • CB Gold Inc. (TSX-V:CBJ) closed a $2.58 million offering on a best efforts basis.    
  • Carmax Mining Corp. (TSX-V:CXM) closed a $1.5 million offering on a strategic deal basis.   
  • Southern Sun Minerals Inc. (TSX-V:SSI) closed a $0.9 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.
  • Treasury Metals Inc. (TSX:TML) closed a $0.67 million offering on a best efforts basis.

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