Oreninc Index Update: July 23, 2015

Views

101

Share

b2ap3_thumbnail_Index-Mailchimp-Header-7-23-15.png

Oreninc Index Remains in Funk 

The Oreninc Index remained in a funk for the week ending July 23, 2015. Total dollars announced jumped to $45.4m, a two-week high. Three brokered financings were announced for $4.6m, a three-week high; no bought deals were announced for the fifth straight week.

Deal-making was mostly quiet; Royal Gold (NASDAQ:RGLD) announced its agreement with New Gold Inc. (NASDAQ:NGD) to acquire a percentage of the gold and silver production from New Gold’s Rainy River project for $175m. Gold fell even further into its five-year low during the week, before recovering slightly. Iron ore also had a down week.

The summer funk appears to be in full swing and this season seems particularly bleak considering the fall in commodity prices and chinese equities. While this may be a particularly bad year, it is important to remember that this summer lull is an unsurprising trend in the annual financing cycle.

 

a1sx2_Original1_Index-Image-7-23-15.png

 Summary:

  • Number of financings fell to 20, a 14-week low.
  • Three brokered financings were announced for $4.6m, a three-week high.
  • No bought deal financings were announced for the fifth straight week.
  • Total dollars jumped to $45.4m, a two-week high.
  • Average offer size decreased to $2.3m, a three-week high.  

Major Financing Openings:

  • Red Eagle Mining Corporation (TSX-V:RD) opened and closed a $19.35 million offering on a best efforts basis. The deal is expected to close on or about August 21, 2015.
  • Heron Resources Ltd. (TSX:HER) opened a $6.8 million offering on a strategic deal basis. The deal is expected to close on or about August 24, 2015.
  • IMX Resources (TSX:IXR) opened a $3 million offering on a best efforts basis.   
  • Maya Gold & Silver Inc. (TSX-V:MYA) opened a $2.5 million offering underwritten by a syndicate led by Jacob Securities Inc. on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.

Major Financing Closings:

  • Junex Inc. (TSX-V:JNX) closed a $7.5 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 36 months.
  • Roxgold Inc. (TSX-V:ROG) closed a $6.29 million offering on a strategic deal basis.
  • SouthGobi Resources Ltd. (TSX:SGQ) closed a $3.7 million offering on a best efforts basis.    
  • Indico Resources Ltd. (TSX-V:IDI) closed a $3 million offering on a strategic deal basis.

Close

Newsletter Sign up






    Close

    Become in our Sponsor

      We will contact you to present our sponsor plans and pricing