Oreninc Index Update: June 18, 2015

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Oreninc Index Jumps to Four-Week High

The Oreninc Index jumped to a four-week high for the week ending June 18, 2015. Total dollars announced rose to $99.1m, a two-week high. Five brokered financings were announced for $84.2m, a five-week high; three bought deal financings were announced for $79.2m. 

Deal making for the week was led by Goldcorp’s (TSX:G) decision to sell its 26% stake in Tahoe Resources (TSX:THO) for $99.9m to a group of banks led by GMP Securities L.P. and BMO Capital Markets. The shares will be resold to individual investors. Gold continued its rise, inching just past the $1,200 mark for the first time in over three weeks. Iron ore pulled back for the week for a two-week low. In addition, platinum had an unusually rough week, falling to a six year low.

We’ve officially reached summer and the markets can tell. Although the index was up and there were a couple deals in the space, the positive index numbers are mostly a product of the Kelt Exploration deal, which buoyed the week from what would have been one of the years lowest to a positive week. While the index is usually carried by one or two particularly strong deals, this week was especially stark, as no other deals went above the relatively low $3.2m mark.

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Summary:

  • Number of financings dropped to 21, a nine-week low.
  • Five brokered financings were announced for $84.2m, a five-week high. 
  • Three bought deal financings were announced for $79.2m, a 10-week high..
  • Total dollars rose to $99.1m, a two-week high.
  • Average offer size increased to $4.7m, a five-week high.  

Major Financing Openings:

  • Kelt Exploration Ltd. (TSX:KEL) opened a $78.7 million offering underwritten by a syndicate led by Peters & Co. Ltd. on a bought deal basis. The deal is expected to close on or about July 7, 2015.
  • Coro Mining Corp. (TSX:COP) opened a $3.19 million offering on a strategic deal basis.
  • Northern Graphite Corporation (TSX-V:NGC) opened a $2.5 million offering underwritten by a syndicate led by Secutor Capital Management Corp. on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
  • Alabama Graphite Corp. (CSE:ALP) opened a $2.5 million offering underwritten by a syndicate led by First Republic Capital Corporation on a best efforts basis. Each unit includes a 1/2 warrant that expires in 36 months.

Major Financing Closings:

  • Newmarket Gold Inc. (TSX-V:NGN) closed a $24.8 million offering underwritten by a syndicate led by GMP Securities LP on a best efforts basis.    
  • Premier Gold Mines Limited (TSX:PG) closed a $20 million offering on a best efforts basis.
  • Yoho Resources Inc. (TSX-V:YO) closed a $5.74 million offering underwritten by a syndicate led by Acumen Capital Finance Partners Ltd. on a bought deal basis.    
  • Manitok Energy Inc. (TSX-V:MEI) closed a $13.8 million offering on a best efforts basis.

 

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